The Lerner index measures the price margin over marginal cost as a share of price.
Lerner Index Calculator
Form
Results
Lerner index
0
Table of Contents
1
What is Lerner Index?
2
How to Use This Calculator
- Enter or select Price, Marginal cost.
- Check the unit beside each measurement. For a percentage or rate, use the scale and time period stated in the form.
- Choose Calculate, then compare the output with the formula and example below. If you change a value or option, calculate again to update the result.
3
Formula Used
L = (price−marginal cost)/price
4
Variables Explained
| Input | What it means |
|---|---|
| Price | The stated purchase or selling amount, in the same currency as the related costs. |
| Marginal cost | The cost amount included by this calculation; keep it on the same basis as the selling amount. |
5
Worked Example
Price 20 and marginal cost 12 give L=0.4.
6
Why Use This Calculator?
Compare the result with the underlying statement, budget or proposed transaction. It is most useful when every amount uses the same reporting period and the same accounting definition.
7
Common Mistakes
- Marginal cost is the cost of one additional unit, not necessarily average total cost.
8
Frequently Asked Questions
Should I use monthly or annual figures?
Use one consistent period for every amount and rate in the relationship. If a form specifies an annual rate or a monthly amount, follow that label rather than mixing time periods.
Does the result include fees and tax?
Only the costs and taxes represented by the inputs and formula are included. A real transaction can include other charges, so compare the estimate with the underlying agreement or statement.
9
Sources & References
Mini Calculator provides online calculators for multiple niches including mathematical, financial, Health, informative, Chemistry, physics, statistics, and conversions. You can use any calculator for free without any limits.