FINANCE & TAX CALCULATOR
Gini Coefficient
A precise tool.
What is the Gini Coefficient & How does it work?
The Gini coefficient is a measure of statistical dispersion intended to represent the income or wealth distribution of a nation’s residents, and it ranges from 0 (perfect equality) to 1 (maximal inequality).It is widely used in economics to measure inequality. A higher Gini coefficient indicates greater inequality.
G = frac{sum_{i=1}^{n} (2i – n – 1) y_i}{n sum_{i=1}^{n} y_i}
y = income of the i-th household, n = total number of households
Parameters
Result
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Frequently Asked Questions
What is the Gini coefficient?
The Gini coefficient measures income or wealth distribution, ranging from 0 (perfect equality) to 1 (maximal inequality).
How do I interpret a high Gini coefficient?
A higher Gini coefficient indicates greater income inequality within a population.
Can the Gini coefficient be used for wealth distribution?
Yes, the Gini coefficient can also measure wealth distribution in addition to income.
What is the formula for calculating the Gini coefficient?
G = (sum from i=1 to n of (2i - n - 1) * y_i) / (n * sum from i=1 to n of y_i), where y_i is the income of the i-th household and n is the total number of households.
How does this calculator work?
Enter the income data for each household, and the calculator will compute the Gini coefficient based on the provided information.
Is there a limit to the number of households I can input?
The calculator supports up to 100 households for accurate computation.
Can this tool be used for international comparisons?
While the Gini coefficient is widely used, direct comparisons between countries may require adjustments due to differences in economic contexts and data availability.
Results are for informational purposes only and do not constitute professional advice.