APC Calculator
Calculate Average Propensity to Consume - measure your spending habits and consumption patterns
Average Propensity to Consume Calculator
Total amount spent on goods and services
Income after taxes and deductions
APC Results
Consumer Profile: Moderate Consumer
You have a balanced consumption and saving pattern
Formula Used:
APC = C / Y
APC = $84,500 / $150,000 = 0.563
Example Calculation
Basic APC Example
Annual disposable income: $150,000
Total consumption: $84,500
APC calculation: $84,500 ÷ $150,000 = 0.563
Interpretation: You consume 56.3% of your income
Economic Meaning
APC < 1: You save part of your income
APC = 1: You spend all your income
APC > 1: You spend more than your income (using savings or borrowing)
APC Interpretation
Key Economic Concepts
APC vs MPC
Economic Implications
Formula Components
Understanding Average Propensity to Consume (APC)
What is APC?
The Average Propensity to Consume (APC) measures how much of your disposable income you spend on goods and services. It represents the ratio of total consumption to disposable income and helps understand spending patterns and economic behavior.
APC Formula
APC = C / Y
- • C: Total consumption
- • Y: Disposable income
Economic Significance
- Consumer behavior: Reveals spending vs saving preferences
- Economic demand: Higher APC indicates more consumption demand
- Income effects: Low-income households typically have higher APC
- Policy implications: Used in economic planning and fiscal policy
Advanced Formula
APC can also be calculated using the consumption function: APC = Ca/Y + c, where Ca is autonomous spending and c is the marginal propensity to consume.