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How to 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.

Things You'll Need

  • Calculator or spreadsheet program
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Instructions

    • 1

      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.

    • 2

      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

    • 3

      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. Therefore, the per capita income of the United States in 2006 is:
      pci = $10,968,393,000,000 / 300,000,000
      pci = $36,561

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