Per capita income

Total income (also known as per capita income (PCI) or total income) is a measure of the average income received by each person in a particular area (city, region, nation, etc.) in a given year. It is determined by dividing the total income of the region by the entire population of the area.

Per capita income is computed by dividing national income by the population size. A measure of per capita income is often used to compare the wealth of various populations and to determine the average income of a sector. In addition, per capita income is often used to assess a country's overall quality of life. When defined in terms of a frequently used world currency, such as the euro or the United States dollar, it is useful because it is widely known, can be easily calculated from readily available gross domestic product (GDP) and population estimates, and produces a useful statistic for comparing the wealth of sovereign countries. This is useful in determining the development status of a nation. It is one of the three metrics used to calculate a country's Human Development Index, which is a composite measure. The term "average income" refers to the amount of money earned by each individual.