Calculate national income, GDP, GNP and NNP from income or expenditure data, plus per capita, PPP, real vs nominal and growth rates.

Adjust GDP for foreign income, capital consumption and net indirect taxes.

Use one currency, period and accounting convention. National income here means the textbook NNP at factor cost; official national accounts may use different definitions.

Applies to every monetary input. Changing it reinterprets the numbers; it does not convert them.

Income adjustments (blank = zero)

Indirect taxes minus subsidies; may be negative.

National Income Formula

The following equation can be used to calculate national income (often measured as NNP at factor cost).

NI = C + I + G + (X - M) + NFIA - Dep - NIT
  • Where NI is the national income (NNP at factor cost)
  • C is total consumption
  • I is total investment
  • G is government expenditure on goods and services
  • X is exports
  • M is imports
  • NFIA is net factor income from abroad (income earned by residents abroad minus income earned domestically by non-residents)
  • Dep is depreciation (consumption of fixed capital)
  • NIT is net indirect taxes (indirect taxes minus subsidies)

National Income Definition

National income describes income earned by a country’s residents over a period, usually a year. This calculator uses the textbook net national product at factor cost convention: GDP plus net factor income from abroad, less depreciation and net indirect taxes. Official statistical definitions and required adjustments differ; do not assume this simplified factor-cost total equals every published national-income series.

National Income Example

How to calculate national income?

  1. First, determine GDP using the expenditure components.

    Calculate GDP as C + I + G + (X − M).

  2. Next, determine net factor income from abroad (NFIA).

    Find NFIA as income earned by residents abroad minus income earned domestically by non-residents.

  3. Next, determine depreciation and net indirect taxes.

    Estimate depreciation (consumption of fixed capital) and net indirect taxes (indirect taxes minus subsidies).

  4. Finally, calculate national income.

    Calculate NI = GDP + NFIA − Depreciation − Net Indirect Taxes.

FAQ

What is national income?

National income is the total income earned by a country’s residents over a period (usually a year), represented in this calculator by the textbook net national product (NNP) at factor cost convention (i.e., GDP adjusted for net factor income from abroad, depreciation, and net indirect taxes).