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How to calculate Consumer surplus

The Consumer surplus formula, with plain worked examples you can check yourself.

Consumer surplus = W − P

Worked examples

W = 100 · P = 80Consumer surplus = 20
W = 60 · P = 40Consumer surplus = 20
W = 70 · P = 40Consumer surplus = 30

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Market Structures.

Related terms

Supply and demandMonopolyOligopolyPerfect competitionExternalityPublic good

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