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Deadweight Loss Triangle Calculator — result sheet
Estimate the triangular welfare loss from a price change and quantity change under a linear supply-and-demand approximation.
Inputs used
Results
Visual chart
Breakdown
Calculation steps
Returned data table
Formula and methodology
Formula: Triangular deadweight-loss estimate = ½ × |new price − original price| × |original quantity − new quantity|.
The calculator treats the change as the base and height of a welfare-loss triangle. It reports a nonnegative magnitude even when the entered policy or market change is a subsidy, tax, ceiling, floor, or other scenario that moves price and quantity in a different direction. A true welfare analysis needs the supply and demand curves, transfers, externalities, and who gains or loses.
This result follows the calculator's declared inputs, precision, validation boundaries, and model limits.
Input contract
- Original equilibrium price — currency units per item; minimum 1.0E-6; maximum 1000000000
- New price — currency units per item; minimum 1.0E-6; maximum 1000000000
- Original equilibrium quantity — items; minimum 1.0E-6; maximum 1000000000
- New quantity — items; minimum 1.0E-6; maximum 1000000000
Worked example
| Input | Value |
|---|---|
| Original equilibrium price | 10 |
| New price | 12 |
| Original equilibrium quantity | 1000 |
| New quantity | 800 |
Price change = 2, quantity change = 200, and the triangular deadweight-loss estimate is 200 currency units.
Assumptions and limits
- The original values represent an equilibrium or reference point and the new values represent the changed outcome.
- The triangular approximation assumes the relevant marginal value and marginal cost lines are linear over the changed quantity range.
- Price and quantity differences are treated as magnitudes so the result is a loss estimate rather than a signed transfer.
- The result uses the same currency-per-item and item units entered by the visitor.
- Taxes, subsidies, producer surplus, consumer surplus, external costs, monopoly rents, and government revenue are not separately allocated.
- A positive number does not identify the cause of the inefficiency or prove that a policy should be changed.
Calculator note
Source and methodology
Use the official WorldCalculate methodology policy for the source, formula, precision, and boundary standards behind this calculator.
Planning estimate, not financial, medical, legal, or professional advice. © WorldCalculate — reuse with attribution. Built and curated by Hassan ALRowaie.
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