disposable income

Disposable income is any income or revenue an individual or business receives that is left over after paying necessary expenses. For example, if you make $1,000 a week with $600 weekly expenses, you would have $400 weekly disposable income. Disposable income is used to calculate a person’s credit details, spousal payments in a divorce, and debt payments in a bankruptcy. 

[Last updated in June of 2021 by the Wex Definitions Team]