Income Per Capita Equation

In a specified period say during a year usually aiming to determine the average income earned by a person in order to evaluate the standard.

Income per capita equation. For example a small town with a population of only 20 people had a total income of 200 000 in 2010. Province country city area sector etc. The disposable income per capita a variation of income per capita is another widely used economic measure individuals and households consume goods and services necessities such as food shelter transportation healthcare and leisure while also saving a portion or funds. Per capita income doesn t reflect inflation in an economy which is the rate at which prices rise over time.

Calculate the per capita income by dividing the total income by the population. Real gdp per capita is a country s economic output for each person adjusting for inflation. Gdp per capita can be said to be a measure of a nation s economic output which shall account for its population that is the count of the person. Firstly determine the nominal gdp of the subject country on the basis of its private consumption gross investment government investment exports and imports as shown below.

Formula to calculate per capita income. The formula divides the nation s gross domestic product that is the gdp by its number of people in short the total population of the nation. You can also determine the gross national income per capita of a country using a similar formula to the one used to get the gdp per capita. To calculate the gross national income per capita you will use the same information used to calculate the gdp per capita in addition to any income that residents have brought in as a result of foreign investments.

Per capita income can be described as an economic barometer which measures the income earned by an individual under a given set of economic unit say geographic region i e. Per capita income is national income divided by population size. When you divide 200 000 by 20 the result is 10 000 in per capita income or 10 000 in income for every man woman and child. The formula how to calculate annual data since 1947.

It is calculated by dividing the area s total income by its total population.