Discretionary Income: Examples and How to Calculate

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Is Discretionary Income?
Mortgage or rent Food Utilities Student loans Car payments Health insurance Taxes
Discretionary Income Examples
Discretionary Income for an Individual or Household
Discretionary Income for Income-Driven Student Loan Repayment Plans
Discretionary Income for the Income-Contingent Student Loan Repayment Plan
What Is Disposable Income?
Disposable Income Examples
Disposable Income vs Discretionary Income
Can Discretionary Income Change?
The Takeaway
Frequently Asked Questions
Photo credit: iStock/EKIN KIZILKAYA
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About the Author
Rebecca Safier has nearly a decade of experience writing about personal finance. Formerly a senior writer with LendingTree and Student Loan Hero, she specializes in student loans, financial aid, and personal loans. She is certified as a student loan counselor with the National Association of Certified Credit Counselors (NACCC).
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