Enter the total debt ($) and the total population into the Calculator. The calculator will evaluate the Debt Per Capita.
Debt Per Capita Formula
DPC = D / P
Variables:
- DPC is the Debt Per Capita ($/person)
- D is the total debt ($)
- P is the total population
To calculate Debt Per Capita, divide the national debt by the total population.
How to Calculate Debt Per Capita?
The following steps outline how to calculate the Debt Per Capita.
- First, determine the total debt ($).
- Next, determine the total population.
- Next, gather the formula from above = DPC = D / P.
- Finally, calculate the Debt Per Capita.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
total debt ($) = 300000
total population = 100000
Frequently Asked Questions
What is the significance of calculating Debt Per Capita?
Debt Per Capita provides an average figure of how much debt each citizen would be responsible for if the debt were divided equally among the population. It helps in understanding the burden of national debt on an individual level and can be a useful metric in economic analysis and policy making.
How does Debt Per Capita relate to a country’s economic health?
While Debt Per Capita alone does not determine a country’s economic health, a high Debt Per Capita might indicate that a country is over-leveraged and may face difficulties in managing its debt. Conversely, a manageable level of Debt Per Capita might suggest that the country is using its debt efficiently to fuel growth.
Can Debt Per Capita affect a country’s credit rating?
Yes, Debt Per Capita can influence a country’s credit rating. Credit rating agencies consider a variety of factors, including debt levels, when assessing a country’s creditworthiness. A higher Debt Per Capita might be seen as a risk factor, potentially leading to a lower credit rating.
Why is it important to compare Debt Per Capita with other economic indicators?
Comparing Debt Per Capita with other economic indicators, such as GDP per capita or the debt-to-GDP ratio, provides a more comprehensive understanding of a country’s economic position. It helps in assessing whether the level of debt is sustainable in the context of the country’s overall economic performance and potential for growth.
