Expected Utility Calculator
Make better decisions under uncertainty by calculating expected utility based on your risk preferences
Decision Outcomes
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Total Probability: 100%
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Expected Utility Analysis
EV
Expected Value
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EU
Expected Utility
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CE
Certainty Equivalent
-
RP
Risk Premium
Utility Gain/Loss Meter
Neutral
Utility Loss
Neutral
Utility Gain
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Decision Recommendation
Based on your risk preferences, this decision appears to be...
Utility Function Curve
Wealth Distribution
Multi-Decision Comparison
| Decision | Expected Value | Expected Utility | Risk Score | Recommendation |
|---|
Understanding Expected Utility
Expected Utility Theory helps you make rational decisions when facing uncertainty. Unlike expected value, which only considers monetary outcomes, expected utility accounts for your personal risk preferences.
Expected Value (EV)
The average outcome if the decision were repeated many times.
Expected Utility (EU)
The average satisfaction or utility you would get from the outcomes, weighted by their probabilities.
Certainty Equivalent (CE)
The guaranteed amount that would give you the same utility as the risky prospect.
Risk Premium (RP)
The amount you would pay to avoid the risk (EV - CE).
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