Enter the total income ($) and the total expenses, including tax, into the Calculator. The calculator will evaluate the Discretionary Income.

## Discretionary Income Formula

DI = I - E

Variables:

- DI is the Discretionary Income ($)
- I is the total income ($)
- E is the total expenses, including tax

To calculate Discretionary Income, subtract the total expenses from the total income.

## How to Calculate Discretionary Income?

The following steps outline how to calculate the Discretionary Income.

- First, determine the total income ($).
- Next, determine the total expenses, including tax.
- Next, gather the formula from above = DI = I – E.
- Finally, calculate the Discretionary Income.
- 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 income ($) = 3000

total expenses including tax = 2000