National Income Calculator

Formula

The formula to calculate the national income is:

\[ \text{NI} = C + GE + I + E - IM + FPNR - DPBNR \]

Where:

NI is the national income.
C is the total consumption.
GE is the government expenditures.
I is investments.
E is exports.
IM is imports.
FPNR is foreign production by national residents.
DPBNR is domestic production by non-national residents.

What is National Income?

National income is a monetary estimate of the total monetary income of a country. It’s similar and in some cases the same as the GDP, or gross domestic product.

Example Calculation

Let's consider an example:

Total Consumption (C): $1,000,000
Government Expenditures (GE): $500,000
Investments (I): $300,000
Exports (E): $200,000
Imports (IM): $100,000
Foreign Production by National Residents (FPNR): $50,000
Domestic Production by Non-National Residents (DPBNR): $30,000

Using the formula to calculate the national income:

\[ \text{NI} = 1,000,000 + 500,000 + 300,000 + 200,000 - 100,000 + 50,000 - 30,000 = 1,920,000 \]

This means that the national income for this scenario is $1,920,000.