Discretionary Income Calculator

Formula

To calculate the Discretionary Income ($DI$):

\[ DI = I - E \]

Where:

$DI$ is the Discretionary Income ($)
$I$ is the Total Income ($)
$E$ is the Total Expenses, including tax ($)

What is Discretionary Income?

Discretionary income is the amount of an individual's income that is left for spending, investing, or saving after paying taxes and personal necessities (such as food, shelter, and clothing).

Example Calculation 1

Let's assume the following values:

Total Income ($I$) = $5000
Total Expenses ($E$) = $3000

Using the formula:

\[ DI = 5000 - 3000 = 2000 \]

The Discretionary Income is $2000.

Example Calculation 2

Let's assume the following values:

Total Income ($I$) = $7000
Total Expenses ($E$) = $4500

Using the formula:

\[ DI = 7000 - 4500 = 2500 \]

The Discretionary Income is $2500.