How to calculate personal income

Personal income is always different from the nation that is the cumulative profit received by the owners of the funds or other economic resources. To calculate your personal income needs: subtract from the national income all funds that do not accrue to the households, that is, are part of the collective income, and then add a value that increases their income, but it is not included in national income.

Define personal income according to the following formula: personal income = net national income – taxes paid on corporate profits – the size of social insurance contributions – the value of the undistributed profit of the enterprises the interest on existing government bonds + transfers.

Can calculate personal income, using other formulas. Thus, personal income = national income – corporate profits - contributions spent on social insurance + dividends + interest on existing government bonds + transfers.

In addition, there is personal disposable income, which is a type of aggregate income. It is used in a household. In this case the income is less personal income on the amount of individual taxes paid by the owners of economic resources in the form of direct (income) tax amounts.

In turn, households spend their own disposable income on savings and consumption. In this case, disposable personal income is equal to the sum of savings and consumption.

The savings can be of different types. Personal savings or household savings can be calculated as the difference between personal disposable income and the cost spent on private consumption. Savings business include: retained earnings and depreciation, the company, which are defined by internal sources of Finance, as well as the basis for a better functioning of the company.