A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Net IncomeWhat is left of your earnings after taxes and deductions, which is the money you actually have available to spend or save.
- Take-Home PayThe amount of your paycheck that actually lands in your account after taxes, benefits, and other deductions are removed.
- Payroll DeductionsAmounts your employer subtracts from your gross pay, including taxes, retirement contributions, and insurance, before you see the rest.
- Disposable IncomeThe money left over after paying taxes that you can freely choose to spend, save, or invest as you like.
- Debt-to-Income Ratio (DTI)The share of your monthly income that goes to debt payments — a key number lenders check.
- Adjusted Gross Income (AGI)Your total income minus certain adjustments, used as the starting point for figuring out how much tax you owe.
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Plain-English education — not personalized legal, tax, or investment advice.