Enter the total consumption, government expenditures, investments, exports, imports, foreign production by national residents, and domestic product by non-residents to determine the national income of a country.

National Income Formula

The following equation can be used to calculate a national income. 

NI = C + GE + I + E - IM + FPNR - DPBNR
  • Where NI is the national income
  • C is the total consumption
  • GE is the government expenditures
  • I is investments
  • E is exports
  • IM is imports
  • FPNR is foreign production by national residents
  • DPBNR is domestic production by non-national residents

National Income Definition

A national income is a monetary estimate of the total monetary income of a country. It’s similar and in some cases the same as the GDP, or gross domestic product.

National Income Example

How to calculate a national income?

  1. First, determine the consumption and expenditures.

    Calculate the total consumption and the government expenditures.

  2. Next, determine the investments, imports, and exports.

    Calculate the total in investments, along with the imports and exports.

  3. Next, determine the FPNR and DPBNR.

    Calculate the FPNR and the DPBNR.

  4. Finally, calculate the national income.

    Calculate the national income using the formula above.

FAQ

What is a national income?

National income is a measure of the monetary yearly value of a country.