# Average propensity to consume

In economics, the average propensity to consume (APC) is the fraction of income spent. It is computed by dividing consumption by income, or ${\displaystyle APC={\frac {C}{Y}}}$.
Sometimes, disposable income is used as the denominator instead, so ${\displaystyle APC={\frac {C}{Y-T}}}$, where C is the amount spent, Y is pre-tax income, and T is taxes.