Private Savings Calculator

Formula

The formula to calculate Private Savings is:

\[ S = \text{GDP} - T - C \]

Where:

$ S $ is the Private Savings
$ \text{GDP} $ is the Total Gross Domestic Product
$ T $ is the Total Tax Collected by the Government
$ C $ is the Total Consumption by Individuals

Private Savings Definition

Private savings is the average amount saved by all private citizens of a given country. It is calculated by subtracting the total tax collected by the government and the total consumption of individuals from the total GDP.

Example Calculation

Let's consider an example:

Total GDP: $1,000,000
Total Tax Collected: $200,000
Total Consumption: $600,000

Using the formula to calculate Private Savings:

\[ S = 1,000,000 - 200,000 - 600,000 = 200,000 \]

This demonstrates that with a total GDP of $1,000,000, total tax collected of $200,000, and total consumption of $600,000, the private savings would be $200,000.