How Do You Calculate Per Capita Income?
Per capita income is a useful economic indicator for an area. Basically, the per capita income is how much income each individual of a population would receive if the area’s total income were divded equally among all members of the population. Per capita income is often used as a measure of the wealth of the population of a particular nation, especially when compared to other nations. This article will quickly show you how to calculate per capita income. To calculate per capita income, you must first know the Total Personal Income and the Population for the area in which you want to determine Per Capita Income. To find the per capita income of an area, use the following formula: pci = i/P Where: pci = per capita income i = total personal income P = total population Example of per capita income calculation: In 2006, the United States had a total personal income of $10,968,393,000,000. The total population of the U.S. in 2006 was approximately 300,000,000.
