Producer Surplus Calculator

What is Producer Surplus?

Producer surplus is the difference between what producers are willing to accept for a good and what they actually receive in the market. It represents the benefit producers receive by being able to sell at a market price higher than their minimum willingness to sell.

How to Use This Calculator

1. Enter the Equilibrium Price - this is the price at which the quantity supplied equals the quantity demanded in the market.
2. Enter the Equilibrium Quantity - this is the quantity of goods sold at the equilibrium price.
3. Optionally, enter the Maximum Willingness to Sell if you know the minimum price at which producers are willing to sell any quantity.
4. Click the Calculate button to see the results.

Understanding the Results

The calculator shows:

• The market price and minimum willingness to sell
• The producer surplus amount (money producers benefit)
• The area representation (visualizing the surplus)

Example

Suppose the equilibrium price for apples is $1.00 per pound, and the equilibrium quantity is 100 pounds. If producers are willing to sell apples for as low as $0.50 per pound, the producer surplus would be:

($1.00 - $0.50) × 100 pounds = $50.00

Practical Applications

Producer surplus is used in economics to:

• Measure the benefits producers receive from market transactions
• Analyze the impact of price controls and taxes on producers
• Assess the efficiency of markets and economic policies