What Is 'Disposable Income'?

Disposable income is the amount of money that households have available for spending and saving after income taxes have been accounted for. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Term of the Day | Words to Know Disposable Income Disposable income, also known as disposable personal income (DPI), is the amount of money that households have available for spending and saving after income taxes have been accounted for. Disposable personal income is often monitored as one of the many key economic indicators used to gauge the overall state of the economy. Read More » Related to "Disposable Income" How Do Disposable Income and Discretionary Income Differ? Disposable and discretionary income are two different measures used to analyze the amount of consumer spending. Read More » The Impact of Disposable Income on the Stock Market Disposable income has a large impact on the stock market, and that affects the average consumers. Read More » SPONSORED BY FIDELITY INVESTMENTS Fidelity's Unique Career Opportunities With extensive training and rewarding work, Fidelity stands out when it comes to career development. Here are some of the key benefits they offer employees. Learn More » 10 Countries With the Highest Incomes Learn more about the top 10 countries that have the most disposable income per capita. Read More » Sign Up for 'Chart Advisor' Want more Investopedia market news? Investopedia's expert analysts present market performance for the day and discuss with in-depth charting and technical analysis, a must read for traders. Subscribe» Related Definitions Income Tax Income tax is a tax that governments impose on income generated by businesses and individuals within their jurisdiction. Read More » Discretionary Income Discretionary income is the amount of an individual's income that is left for spending, investing, or saving after taxes and necessities are paid. Read More » Economic Indicator An economic indicator refers to data, usually at the macroeconomic scale, that is used to gauge the health or growth trends of a nation's economy, or of a specific industry sector. Read More » Consumer Spending Consumer spending is the amount of money spent on consumption goods in an economy. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2020, Investopedia, LLC, All Rights Reserved | Privacy Policy