Enter the base income ($) and the change in expenses ($) into the Calculator. The calculator will evaluate the Income Erosion. 

Income Erosion Formula

IE = BI - CE

Variables:

  • IE is the Income Erosion ($)
  • BI is the base income ($)
  • CE is the change in expenses ($)

To calculate Income Erosion, subtract the change in expenses from the base income.

How to Calculate Income Erosion?

The following steps outline how to calculate Income Erosion.

  1. First, determine the base income ($). 
  2. Next, determine the change in expenses ($). 
  3. Next, gather the formula from above = IE = BI – CE.
  4. Finally, calculate the Income Erosion.
  5. 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.

base income ($) = 4000

change in expenses ($) = 200