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:

1. First, determine the total economic income (\$). The total economic income (\$) is given as 5,000,000.
2. Next, determine the government income and subsidies (\$). The government income and subsidies (\$) is provided as 1,000,000.
3. 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 (\$)