Disposable Personal Income Definition

Disposable personal income (DPI) is how much money a person has to spend after taxes and any other mandatory withholdings are taken from their paycheck.

Disposable Personal Income Extended Definition

Disposable personal income is the total amount someone has after taxes to spend on necessities, like housing and food. Here’s the calculation:

DPI = Gross Wages – Taxes.

Economists use DPI to look at how much money is actually available to spend in a specific area.

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Last Updated By

Christan Neff | Apr 17, 2023