Enter the acquisition of foreign assets by residents ($) and the acquisition of domestic assets by non-residents ($) into the Calculator. The calculator will evaluate the Net Capital Outflow. 

Net Capital Outflow Formula

NCO = AAF - ADNR

Variables:

  • NCO is the Net Capital Outflow ($)
  • AAF is the acquisition of foreign assets by residents ($)
  • ADNR is the acquisition of domestic assets by non-residents ($)

To calculate the Net Capital Outflow, subtract the value of acquisitions of domestic assets by non-residents from the value of acquisitions of foreign assets by residents.

How to Calculate Net Capital Outflow?

The following steps outline how to calculate the Net Capital Outflow.

  1. First, determine the acquisition of foreign assets by residents ($). 
  2. Next, determine the acquisition of domestic assets by non-residents ($). 
  3. Next, gather the formula from above = NCO = AAF – ADNR.
  4. Finally, calculate the Net Capital Outflow.
  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.

acquisition of foreign assets by residents ($) = 100000

acquisition of domestic assets by non-residents ($) = 20000