This APC calculator works out your average propensity to consume, the share of your income that goes on spending rather than saving, which is one of the building blocks of how economists describe household and national behaviour. The idea is simple: out of every dollar of income you either spend it or save it, and the average propensity to consume (APC) measures how much of the whole gets spent. You enter your disposable income, the money you have to spend after tax, and your total consumption or spending over the same period, and the calculator divides one by the other to give the APC as a decimal between 0 and 1. It also shows the same figure as a percentage, the average propensity to save (APS), which is simply the part you did not spend, and the dollar amount left over as savings. A high APC, close to 1, means almost all income is spent and little is put aside, which is typical of lower incomes where more goes on essentials. A lower APC leaves more room for saving. Students meet APC alongside the marginal propensity to consume in economics courses, while households can use it as a quick gauge of their own spending discipline. Enter your income and spending below to see your APC and how much you are keeping.
$
$
0.80
average propensity to consume (APC)
Share of income spent80%
Propensity to save (APS)0.20
Amount saved$12,000
APC is consumption divided by disposable income, always between 0 and 1 when spending is within income. APC plus APS equals 1. Estimate only, not financial advice.
How it works
The average propensity to consume is total consumption divided by total disposable income. Because income is either spent or saved, the leftover is savings, and the average propensity to save is savings divided by income, or equivalently 1 minus the APC. Multiplying the APC by 100 turns it into the percentage of income that is spent. The closer the APC sits to 1, the more of each dollar is being consumed and the less is being saved.
Worked example
Suppose your disposable income is $60,000 and your consumption over the same year is $48,000. The APC is 48,000 divided by 60,000, which is 0.80, so 80 percent of your income is spent. That leaves $12,000 unspent, giving an average propensity to save of 0.20. As expected, the APC of 0.80 and the APS of 0.20 add up to 1.
