Savings Function Calculator

LAST UPDATE: September 24th, 2020


Definition – What is the savings function?

The savings function describes the relationship between income and consumption. It is paired with the consumption function.

Formula – How to calculate the savings function

Savings = Total Income – Consumption


In a country, total income is $600,000 and consumption is $100,000.

Savings = $600,000 – $100,000 = $500,000

Therefore, savings is $500,000.

Source and more resources