Disposable Income Calculator

Calculate Disposable Income





Formula

The formula to calculate the disposable income (DI) is:

\[ DI = PI - T + GT \]

Where:

What is Disposable Income?

Disposable income is defined as all of the monetary value available to spend after taxes have been paid. It represents the amount of money an individual has available for spending and saving after accounting for taxes and government transfers.

Example Calculation

Let's assume the following values:

Using the formula to calculate the disposable income (DI):

\[ DI = PI - T + GT = 50000 - 10000 + 2000 = 42000 \]

The Disposable Income (DI) is $42,000.