A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Disposable Personal Income Definition

August 11, 2015

Kaylee DeWitt

Short 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.

Extended Definition

Disposable personal income is the total amount someone has after taxes to spend on necessities, like housing and food. It is calculated as DPI=gross wages-taxes. Economists use DPI to look at how much money is actually available to spend in a specific area.

Related Article

What is Disposable Personal Income?

Accounting software glossary ad