Consumer Surplus Calculator
Calculate consumer surplus — the economic benefit buyers receive when they pay less than their maximum willingness to pay — using a linear demand curve.
How to use this tool
- Enter maximum willingness to pay (demand intercept), actual market price and quantity demanded at market price in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your consumer surplus and the full breakdown beneath it.
Formula
CS = ½ × (Pmax − Pmarket) × Q
Where CS = consumer surplus, Pmax = maximum willingness to pay (demand curve intercept), Pmarket = actual market price, Q = quantity demanded at the market price.
How it works
Consumer surplus is the area of the triangle above the market price and below the linear demand curve. With a straight-line demand curve, this area equals one-half times the base (quantity demanded) times the height (the gap between the demand intercept and the market price).
This model assumes a linear (straight-line) demand curve. For non-linear demand curves, surplus must be computed by integrating the demand function. Producer surplus and total welfare are not calculated here.
Worked example
Demand intercept $100, market price $60, quantity 40
- Maximum willingness to pay P_max = $100, market price P = $60, quantity Q = 40 units.
- Price gap = $100 − $60 = $40.
- Consumer surplus = 0.5 × $40 × 40 = $800.
- Total consumer expenditure = $60 × 40 = $2,400.
Consumer surplus = $800.
Key terms
- Consumer Surplus
- The difference between what consumers are willing to pay for a good and what they actually pay, representing their net economic benefit from a transaction.
- Willingness to Pay
- The maximum price a buyer would accept paying for a good or service before preferring not to purchase it.
- Demand Curve Intercept
- The price at which quantity demanded falls to zero; the highest price any consumer in the market is willing to pay.
- Linear Demand Curve
- A straight-line relationship between price and quantity demanded, which gives a triangular area for consumer surplus.
- Market Price
- The equilibrium price at which goods are actually bought and sold in the market.