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Additional Income Savings Share Calculator

Find marginal propensity to save from income and saving changes.

  • Formula & worked example
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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Divide the change in savings by the change in disposable income. Saving 300 of an additional 1,000 gives a marginal propensity to save of 0.3.

Marginal propensity to save = change in savings ÷ change in disposable income

Worked example

Enter these known values and leave the other values blank.

Increase in disposable income
1000 USD
Increase in consumer savings
300 USD
MPS (marginal propensity to save)
0.3

Assumptions and limitations

  • Use values from a consistent period, scope and currency. The stated formula defines this simplified model; the explanation describes quantities it leaves out.

Common questions

Is this the overall savings rate?

No. It compares changes in savings and income. An overall savings rate uses the levels of savings and income over a period.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

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