Disposable Income

Disposable Income
The amount of money that households have available for spending and saving after income taxes have been accounted for. Disposable personal income is often monitored as one of the many key economic indicators used to gauge the overall state of the economy.

Calculated as:

Disposable Income


Also known as "disposable personal income" (DPI).

For example, let's assume your household personal income includes $100,000 from salaries and you are paying at the 35% tax rate. Your household's disposable income would then be $65,000 ($100,000 - $35,000). Economists use DPI to gauge households' rate of savings and spending.

In 2005, the average disposable personal income dipped into negative territory for the first time since 1933. This means that in 2005, Americans were spending their entire DPI and then tapping into debt for further spending.


Investment dictionary. . 2012.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • disposable income — dis*pos a*ble in come, n. (Economics) that portion of income which is available for spending on discretionary purchases; for individuals, it is usually calculated as total income less taxes. National disposable income, which is the disposable… …   The Collaborative International Dictionary of English

  • disposable income — dis·pos·able income n: income available for disposal: as a: the income remaining to an individual after deduction of taxes b: the income of a debtor in bankruptcy that is not necessary to support the debtor or the debtor s dependents Merriam… …   Law dictionary

  • disposable income — That portion of the debtor s income not reasonably necessary for the maintenance and support of the debtor or a dependent of the debtor and not necessary for the operation and preservation of any business in which the debtor is engaged (SA… …   Glossary of Bankruptcy

  • disposable income — n. the income that a person has for spending, saving, or investing after all taxes have been paid …   English World dictionary

  • disposable income — 1. the part of a person s income remaining after deducting personal income taxes. 2. (in national income accounting) the total disposable income of all consumers. [1945 50] * * * Portion of an individual s income over which the recipient has… …   Universalium

  • disposable income — The amount of personal income an individual has after taxes and government fees, which can be spent on necessities, or non essentials, or be saved. Bloomberg Financial Dictionary * * * disposable income disposable income ➔ income * * * disposable …   Financial and business terms

  • Disposable Income (album) — Disposable Income Studio album by Snuff Released March 4, 2003 Genre …   Wikipedia

  • disposable income —   income left after taxes and necessities have been paid. This can be spent on goods or services wanted, or saved …   Geography glossary

  • disposable income — income remaining to an individual for use or saving after payment of taxes …   English contemporary dictionary

  • disposable income of household — namų ūkio disponuojamosios pajamos statusas Aprobuotas sritis gyvenimo lygio statistika apibrėžtis Bendrosios namų ūkio pajamos atskaičius pajamų mokestį, nuolatinius turto mokesčius, darbuotojų, savarankiškai dirbančių asmenų ir bedarbių (jei… …   Lithuanian dictionary (lietuvių žodynas)

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”