Spending Multiplier Calculator

Calculate economic spending multiplier effect.

Initial Spending ($)

Marginal Propensity to Consume (MPC)

Value between 0 and 1

Marginal Propensity to Save (MPS)

Automatically calculated: 1 - MPC

Number of Rounds

Multiplier Results

Spending Multiplier

Total Economic Impact

Additional GDP

Round-by-Round Breakdown

Round	Spending	Saving	Cumulative

Spending Impact Visualization

Economic Context

MPC Ranges by Income Level

Low Income: 0.8 - 0.9
Middle Income: 0.6 - 0.8
High Income: 0.4 - 0.6
Average Economy: 0.7 - 0.75

Multiplier Interpretation

• Very High Impact (4+)
• High Impact (3-4)
• Moderate Impact (2-3)
• Low Impact (<2)

Formula and Explanation

Spending Multiplier Formula

Multiplier = 1 / (1 - MPC) = 1 / MPS

Where MPC = Marginal Propensity to Consume, MPS = Marginal Propensity to Save

Key Concepts

MPC: Fraction of additional income spent
MPS: Fraction of additional income saved
Multiplier: Total economic impact ratio
Rounds: Successive spending cycles

Applications

• Government spending analysis
• Economic stimulus planning
• Investment impact assessment
• Regional development projects

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v1.0.0.758733