Macroeconomics
Fiscal Multiplier Calculator
Explore the textbook government-spending multiplier from the marginal propensity to consume.
Runs locally
Enter a value from 0 up to, but not including, 1.
Inputs and results stay in this browser. Currency symbols are illustrative; use any consistent currency.
Spending multiplier4
Predicted GDP change40
Induced consumption change30
Formula
Spending multiplier = 1 ÷ (1 − MPC); predicted GDP change = multiplier × spending change
How to interpret the result
This is the simple closed-economy textbook model. Real multipliers depend on spare capacity, monetary policy, trade, financing and household behaviour.
Assumptions and limitations
This calculator is an educational estimate, not financial, investment, tax or policy advice. Use consistent units and verify material decisions against primary data and professional guidance.
Last reviewed 2026-07-14. Calculations tested 2026-07-14.