In a closed economy national saving equals investment. A government deficit (negative public saving) must be financed by private saving or borrowing from abroad.
How to use the Private Savings Calculator
- National income (Y)
- Taxes (T)
- Transfer payments (TR)
- Consumption (C)
- Government purchases (G)
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter national income (GDP), taxes, transfer payments, consumption and government purchases.
Tips
- Use real (inflation-adjusted) figures to compare across years.
- Check whether data are seasonally adjusted.
- Use the same currency and base year throughout.
- Economic models simplify reality – treat results as illustrations, not forecasts.
Common mistakes to avoid
- Mixing nominal and real values.
- Comparing percentage changes with percentage-point changes.
- Treating correlations as causes.
Inputs explained
| Field | What to enter |
|---|---|
| National income (Y) | Amount in your currency |
| Taxes (T) | Amount in your currency |
| Transfer payments (TR) | Amount in your currency |
| Consumption (C) | Amount in your currency |
| Government purchases (G) | Amount in your currency |
What each result means
- Private saving = [National income (Y)] – [Taxes (T)] + [Transfer payments (TR)] – [Consumption (C)]
- Public saving = [Taxes (T)] – [Government purchases (G)] – [Transfer payments (TR)]
- National saving = [National income (Y)] – [Consumption (C)] – [Government purchases (G)]
- National saving rate = [National saving]÷[National income (Y)]×100
Example values
How the main result changes when National income changes and everything else stays at the example values above:
| National income (Y) | Private saving |
|---|---|
| 12,000 | -6,000 |
| 18,000 | 0 |
| 24,000 | 6,000 |
| 30,000 | 12,000 |
| 36,000 | 18,000 |
| 48,000 | 30,000 |
Formula
Private saving = Y − T + TR − CPublic saving = T − G − TRNational saving = private + public = Y − C − GWorked example
Inputs — National income (Y): $24,000; Taxes (T): $5,000; Transfer payments (TR): $3,500; Consumption (C): $16,500; Government purchases (G): $4,200.
Results — Private saving = $6,000.00; Public saving = $-2,700.00; National saving = $3,300.00; National saving rate = 13.75 %.
Frequently asked questions
What is private saving?
Disposable income minus consumption.
What is public saving?
Tax revenue minus government spending and transfers.
How does national saving relate to investment?
In a closed economy they are equal.
What formula does the Private Savings Calculator use?
Private saving = Y − T + TR − C.