Private Savings Calculator

Calculate Private Savings





Formula

The formula to calculate Private Savings is:

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

Where:

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:

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.