| Approach | Threshold (%) | Denominator | The out-of-pocket payment that results in CHE | |
|---|---|---|---|---|
| Ethiopian birr (ETB) | US$a | |||
| Budget share | 10 | Household income | 2423 | 111 |
| Budget share | 10 | Household expenditure | 2931 | 135 |
| Capacity-to-payb | 25 | Expenditure minus actual food spending | 3200 | 147 |
| Capacity-to-payb | 40 | Expenditure minus actual food spending | 5121 | 236 |
| Budget share | 25 | Household income | 6057 | 279 |
| Budget share | 25 | Household expenditure | 7328 | 337 |
These calculations are based on an average food spending of ETB16,508, a household income of ETB24,227 and a household expenditure of ETB29,310 [30].
aUsing the 2016 exchange rate (US$1 = ETB21.73) [31].
bCapacity-to-pay approach was applied using sub-method 1 (Table 1), where the basic needs was represented by actual food spending.