National Savings Calculator

Formula

To calculate the national savings ($NS$):

\[ NS = Y - C - G \]

Where:

$NS$ is the national savings (\$)
$Y$ is the national income (\$)
$C$ is the total consumption (\$)
$G$ is the total government purchases (\$)

National Savings Definition

National savings is defined as the total national income minus the national consumption and government purchases. It represents the portion of the nation's income that is not consumed or spent by the government, and it is a key indicator of a country's financial health and economic stability.

Example Calculation 1

Let's assume the following values:

National Income ($Y$) = \$1,000,000
Total Consumption ($C$) = \$600,000
Total Government Purchases ($G$) = \$200,000

Using the formula:

\[ NS = 1,000,000 - 600,000 - 200,000 = 200,000 \text{ \$} \]

The national savings is \$200,000.

Example Calculation 2

Let's assume the following values:

National Income ($Y$) = \$2,500,000
Total Consumption ($C$) = \$1,500,000
Total Government Purchases ($G$) = \$700,000

Using the formula:

\[ NS = 2,500,000 - 1,500,000 - 700,000 = 300,000 \text{ \$} \]

The national savings is \$300,000.