Average Propensity to Consume Calculator

LAST UPDATE: September 24th, 2020


Definition – What is the average propensity to consume?

APC is the ratio of consumption to total income. It is the percentage of total income that is put into consumption (as opposed to savings).

Formula – How to calculate APC

Average Propensity to Consume = Consumption ÷ Total Income


Consumption is $100,000 and total income is $600,000.

APC = $100,000 ÷ $600,000 = 0.167

Therefore, the average propensity to consume is 0.167.

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