Enter the total economic income ($) and the government income and subsidies ($) into the Aggregate Cost Calculator. The calculator will evaluate and display the Aggregate Cost.

## Aggregate Cost Formula

The following formula is used to calculate the Aggregate Cost.

**AC = EI – GI**

- Where AC is the Aggregate Cost ($)
- EI is the total economic income ($)
- GI is the government income and subsidies ($)

## How to Calculate Aggregate Cost?

The following example problems outline how to calculate Aggregate Cost.

Example Problem #1:

- First, determine the total economic income ($). The total economic income ($) is given as 5,000,000.
- Next, determine the government income and subsidies ($). The government income and subsidies ($) is provided as 1,000,000.
- Finally, calculate the Aggregate Cost using the equation above:

AC = EI – GI

The values given above are inserted into the equation below:

AC = 5,000,000 – 1,000,000 = 4,000,000.00 ($)

Example Problem #2:** **

The variables needed for this problem are provided below:

total economic income ($) = 6,000,000

government income and subsidies ($) = 2,000,000

Entering these values and solving gives:

AC = EI – GI = 4,000,000.00 ($)