BizJourney
Home › Formulas › Trade balance

How to calculate Trade balance

The Trade balance formula, with plain worked examples you can check yourself.

Trade balance = X − M

Worked examples

X = 140 · M = 120Trade balance = 20
X = 60 · M = 30Trade balance = 30
X = 80 · M = 60Trade balance = 20

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

Practice Trade balance with real numbers

Quizzes, a CEO simulator, a real estate tycoon game and startup tools. Free to start, in 7 languages.

Play BizJourney free →