What is my disposable income?
Type your income before taxes and the taxes you pay. The disposable income calculator shows what is left to spend or save, per year and per month, and your saving rate if you add your spending.
- Disposable income
- $60,262.50
Income of $75,000.00 less $14,737.50 of taxes leaves disposable income of $60,262.50 ($5,021.88 a month).
- Total taxes
- $14,737.50
- Per month
- $5,021.88
- Share of income paid in tax
- 19.65%
Disposable income: $60,262.50. Income of $75,000.00 less $14,737.50 of taxes leaves disposable income of $60,262.50 ($5,021.88 a month).
The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use
How to calculate
Works out disposable income (income after income and payroll taxes) by year and by month, and, with spending, the saving and saving rate as the Bureau of Economic Analysis defines them.
Example with the default inputs (Income before taxes $75,000.00, Federal income tax $6,000.00, State and local income tax $3,000.00, Social Security and Medicare tax $5,737.50): Income of $75,000.00 less $14,737.50 of taxes leaves disposable income of $60,262.50 ($5,021.88 a month).
Method: Total taxes = federal income tax + state and local income tax + Social Security and Medicare tax + other personal taxes. Disposable income = income before taxes − total taxes. Saving = disposable income − spending. Saving rate = saving ÷ disposable income × 100.
- All amounts are for the same year. Social Security and Medicare tax is subtracted, as the Bureau of Economic Analysis leaves social insurance contributions out of personal income.
- Spending includes interest paid and transfers, as personal outlays do.
- Arithmetic is exact on the typed decimals; money shows to the cent and rates to 2 decimals, halves rounded up.
Worked examples
Each example is checked against the calculator on every build.
- Income before taxes $75,000.00, Federal income tax $6,000.00, State and local income tax $3,000.00, Social Security and Medicare tax $5,737.50, Spending for the year $52,000.00 gives Disposable income $60,262.50, Total taxes $14,737.50, Per month $5,021.88, Share of income paid in tax 19.65%, Saving $8,262.50, Saving rate 13.710848%.Source: U.S. Bureau of Economic Analysis, Disposable Personal Income (personal income minus personal current taxes), https://www.bea.gov/data/income-saving/disposable-personal-income; U.S. Bureau of Economic Analysis, Personal Saving Rate (personal saving as a percentage of disposable personal income), https://www.bea.gov/data/income-saving/personal-saving-rate
- Income before taxes $2,000.00, Federal income tax $600.00, Spending for the year $1,720.00 gives Disposable income $1,400.00, Total taxes $600.00, Share of income paid in tax 30%, Saving -$320.00, Saving rate -22.857143%.Source: OpenStax, Principles of Economics 3e, Appendix D, Table D2, The Consumption Function Before and After Taxes, https://openstax.org/books/principles-economics-3e/pages/d-the-expenditure-output-model: after-tax income $1,400, savings –$320
- Income before taxes $50,000.00, Federal income tax $2,500.00, State and local income tax $1,200.00, Social Security and Medicare tax $3,825.00, Other personal taxes $300.00 gives Disposable income $42,175.00, Total taxes $7,825.00, Per month $3,514.58, Share of income paid in tax 15.65%.Source: U.S. Bureau of Economic Analysis, Disposable Personal Income (personal income minus personal current taxes), https://www.bea.gov/data/income-saving/disposable-personal-income
How it works
- Total taxes = federal income tax + state and local income tax + Social Security and Medicare tax + other personal taxes. An empty tax box counts as $0.
- Disposable income = income before taxes − total taxes (below $0 if the taxes are more than the income).
- Per month = disposable income ÷ 12.
- Share of income paid in tax = total taxes ÷ income × 100, shown only when income is more than $0.
- With spending typed: saving = disposable income − spending, and saving rate = saving ÷ disposable income × 100. The saving rate shows only when disposable income is more than $0.
Rules:
- Every amount is $0 or more, at most $1,000,000,000,000.
- A result too large to show as a number (over about 1.8 × 10³⁰⁸, which only an income or disposable income far below a cent can give, as a rate) or not $0 but too small to show (under about 2.5 × 10⁻³²⁴) gives no answer: "A result is too large or too small to show as a number."
- The arithmetic is exact on the decimals you type. Money shows to the cent and rates to at most 2 decimals (trailing zeros dropped), with halves rounded up (away from zero), from the exact value.
Assumptions
- All amounts are for the same year.
- Sales taxes and property taxes on your home count as spending here, not as taxes on income.
Worked examples by hand
A household. Income $75,000; federal tax $6,000, state tax $3,000, Social Security and Medicare $5,737.50 (7.65% of $75,000). Total taxes = $14,737.50; disposable income = 75,000 − 14,737.50 = $60,262.50; per month = $5,021.88 (5,021.875); taxes are 19.65% of income. Spending $52,000: saving = $8,262.50; saving rate = 8,262.50 ÷ 60,262.50 × 100 = 13.71%.
The OpenStax table. Income $2,000 with a 30% tax ($600): disposable income $1,400 (30% of income in tax). Spending $1,720: saving = −$320; saving rate = −320 ÷ 1,400 × 100 = −22.86%.
Smaller income. $50,000 with $2,500 federal, $1,200 state, $3,825 payroll and $300 of other taxes: total $7,825 (15.65%); disposable income $42,175, $3,514.58 a month.
Other questions people ask
What is disposable income?
Disposable income is income after taxes: the money you have left to spend or save. The Bureau of Economic Analysis measures it for the whole country as personal income minus personal current taxes.
How do I calculate disposable income?
Subtract all the taxes you pay on your income from the income: federal, state and local income tax, and Social Security and Medicare tax. $75,000 of income with $6,000 of federal tax, $3,000 of state tax and $5,737.50 of payroll tax leaves $60,262.50 a year, about $5,021.88 a month.
Is disposable income the same as discretionary income?
No. Disposable income is what is left after taxes. Discretionary income is what is left after taxes and necessities such as housing, food and transport, so it is smaller. Student loan repayment plans use yet another definition based on the poverty guideline.
Why are Social Security and Medicare taxes subtracted?
They come out of your pay before you can spend it. The Bureau of Economic Analysis subtracts contributions for government social insurance in arriving at personal income, so its disposable income is after them too.
How is the saving rate calculated?
Saving is disposable income minus spending, and the saving rate is saving as a percent of disposable income, as the Bureau of Economic Analysis defines the personal saving rate. $60,262.50 of disposable income and $52,000 of spending is $8,262.50 saved, a 13.71% saving rate.
Can saving be negative?
Yes, when you spend more than your disposable income, by drawing on savings or borrowing. In a textbook example, $2,000 of income with a 30% tax leaves $1,400, and spending $1,720 means saving −$320.