Economics · Class 12
NFIA Formula + Net Factor Income from Abroad Calculator
Use the NFIA formula: Net Factor Income from Abroad = factor income received from abroad − factor income paid abroad. Calculate NFIA instantly with a worked Class 12 Economics example.
TRY FIRST, THEN REVEAL
NFIA sign practice: five questions with explained answers
Use the same units and accounting period throughout. NFIA uses resident status, not citizenship, and compares factor income received from abroad with factor income paid abroad.
Published by Smit Sir Commerce · Added 27 September 2026 · Original practice, not an official board paper. About the platform · Report a correction
Positive NFIA
Residents receive factor income of Rs 90 crore from abroad; non-residents earn Rs 55 crore domestically. NFIA equals:
- Rs 145 crore
- Rs 35 crore
- Minus Rs 35 crore
- Rs 55 crore
Reveal answer and explanation - Q1
Answer B: Rs 35 crore
NFIA = 90 - 55 = Rs 35 crore. Factor income received exceeds factor income paid.
Negative NFIA
Factor income received from abroad is Rs 25 crore and paid abroad is Rs 70 crore. NFIA is:
- Rs 45 crore
- Rs 95 crore
- Minus Rs 45 crore
- Zero
Reveal answer and explanation - Q2
Answer C: Minus Rs 45 crore
25 - 70 = -45 crore. A negative NFIA is valid: corresponding national income is lower than domestic income.
Comparable aggregates
GDP at market price is Rs 800 crore and GNP at market price is Rs 770 crore. NFIA is:
- Rs 30 crore
- Minus Rs 30 crore
- Rs 1,570 crore
- Cannot be negative
Reveal answer and explanation - Q3
Answer B: Minus Rs 30 crore
GNPmp = GDPmp + NFIA, so NFIA = 770 - 800 = -30 crore. Both aggregates are gross and at market price.
Factor income or transfer?
A resident receives a gift from a relative abroad, with no current productive service supplied in return. Is this gift part of NFIA?
- Yes, all foreign receipts are factor income
- Yes, because it is cash
- No, it is a transfer receipt
- Only if it is received through a bank
Reveal answer and explanation - Q4
Answer C: No, it is a transfer receipt
A gift without a productive service in return is a transfer, not factor income. Do not classify receipts solely by the payment channel.
Reverse conversion
GNPmp is Rs 920 crore and NFIA is minus Rs 20 crore. GDPmp equals:
- Rs 900 crore
- Rs 920 crore
- Rs 940 crore
- Minus Rs 940 crore
Reveal answer and explanation - Q5
Answer C: Rs 940 crore
GDPmp = GNPmp - NFIA = 920 - (-20) = Rs 940 crore. Subtracting a negative adds its magnitude.
Practise the national-income conversion ladder →
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Formula
NFIA = Factor Income from Abroad − Factor Income to Abroad
Worked example
Factor income from abroad of 120 and factor income paid abroad of 90 gives NFIA of 30.
The interactive calculator on this page accepts your own question values and displays the final answer with step-by-step working.
Frequently asked questions
What formula does the NFIA Formula & Calculator — Class 12 Economics use?
This calculator uses: NFIA = Factor Income from Abroad − Factor Income to Abroad. The interactive page shows the working step by step.
Is the NFIA Formula & Calculator — Class 12 Economics free?
Yes. It is free to use and does not require a login.
Can I use the calculator for exam preparation?
Yes. Use it to check numerical working and then practise writing the formula, substitution and final answer yourself.
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NFIA formula: Factor income received from abroad − factor income paid abroad. Enter both values in the calculator, then use the examples below to check the sign.