Discretionary Income Calculator

Calculate Discretionary Income



Formula

To calculate the Discretionary Income (\(DI\)):

\[ DI = I - E \]

Where:

What is Discretionary Income?

Discretionary income is the amount of an individual's income that is left for spending, investing, or saving after paying taxes and personal necessities (such as food, shelter, and clothing).

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ DI = 5000 - 3000 = 2000 \]

The Discretionary Income is $2000.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ DI = 7000 - 4500 = 2500 \]

The Discretionary Income is $2500.