📊 Gini Coefficient Calculator
Calculate income inequality using the Gini coefficient
Enter income values separated by commas (at least 2 values)
How to Use This Calculator
Enter Income Data
Input income values separated by commas (e.g., "10000, 20000, 30000, 40000, 50000"). You need at least 2 values.
Calculate
Click calculate to compute the Gini coefficient, which measures income inequality.
Review Results
See the Gini coefficient (0 to 1), inequality level, and interpretation of the results.
Formula
Gini = 1 - 2 × (Area under Lorenz Curve)
Or using ranked data:
Gini = (2 / (n² × μ)) × Σ(i × yi) - (n + 1) / n
Where: n = number of observations, μ = mean income, i = rank, yi = income
Example 1: Equal Incomes
Incomes: $20,000, $20,000, $20,000, $20,000
Gini Coefficient = 0.0000 (Perfect equality)
All individuals have the same income
Example 2: Moderate Inequality
Incomes: $10,000, $20,000, $30,000, $40,000
Gini Coefficient ≈ 0.3000 (Moderate inequality)
Example 3: High Inequality
Incomes: $5,000, $10,000, $20,000, $65,000
Gini Coefficient ≈ 0.5000+ (High inequality)
About Gini Coefficient Calculator
The Gini Coefficient Calculator calculates the Gini coefficient, which is a measure of income or wealth inequality. The Gini coefficient ranges from 0 to 1, where 0 represents perfect equality (everyone has the same income) and 1 represents perfect inequality (one person has all the income). It's one of the most widely used measures of inequality.
The Gini coefficient is based on the Lorenz curve, which plots the cumulative proportion of income against the cumulative proportion of population. The Gini coefficient is twice the area between the line of perfect equality and the Lorenz curve. A higher Gini coefficient indicates greater inequality.
This calculator is essential for economists, students, policymakers, and anyone studying income inequality, economic development, or social policy. It helps understand income distribution, compare inequality across countries or groups, and evaluate the effectiveness of policies aimed at reducing inequality.
When to Use This Calculator
- Inequality Analysis: Measure income or wealth inequality
- Economic Research: Study income distribution and inequality trends
- Policy Evaluation: Assess the impact of policies on inequality
- Academic Study: Learn about the Gini coefficient and inequality measurement
- International Comparison: Compare inequality across countries or regions
- Social Analysis: Understand income distribution and economic disparity
Why Use Our Calculator?
- ✅ Accurate Calculations: Uses standard Gini coefficient formula
- ✅ Easy to Use: Simple input format (comma-separated values)
- ✅ Educational: Helps understand Gini coefficient and inequality
- ✅ Interpretation: Provides inequality level and interpretation
- ✅ Free Tool: No registration or fees required
- ✅ Flexible: Works with any number of income observations
Understanding the Gini Coefficient
The Gini coefficient measures income or wealth inequality on a scale from 0 to 1. A coefficient of 0 means perfect equality (everyone has the same income), while a coefficient of 1 means perfect inequality (one person has all the income). In practice, most countries have Gini coefficients between 0.25 and 0.60.
Typical Gini coefficient ranges: Below 0.30 indicates low inequality (relatively equal distribution, like Scandinavian countries). 0.30-0.40 indicates moderate inequality (typical for many developed countries). 0.40-0.50 indicates high inequality (significant disparity, like some Latin American countries). Above 0.50 indicates very high inequality (extreme disparity).
Real-World Applications
International Comparison: The Gini coefficient is used to compare income inequality across countries. Scandinavian countries typically have Gini coefficients around 0.25-0.30 (low inequality), while some Latin American and African countries have coefficients above 0.50 (very high inequality).
Policy Analysis: Policymakers use the Gini coefficient to assess inequality and evaluate policies. Tax policies, social programs, and economic policies can affect inequality, and the Gini coefficient helps measure their impact.
Economic Research: Economists use the Gini coefficient to study income distribution trends, understand factors affecting inequality, and analyze the relationship between inequality and economic growth, social stability, and other outcomes.
Important Considerations
- Gini coefficient ranges from 0 (perfect equality) to 1 (perfect inequality)
- Most countries have Gini coefficients between 0.25 and 0.60
- Gini coefficient doesn't show where inequality occurs (middle, top, bottom)
- Gini can be calculated for income, wealth, or other distributions
- Different data sources may give slightly different Gini coefficients
- Gini coefficient is sensitive to outliers and extreme values
Frequently Asked Questions
What is the Gini coefficient?
The Gini coefficient is a measure of income or wealth inequality ranging from 0 to 1. A coefficient of 0 means perfect equality (everyone has the same income), while 1 means perfect inequality (one person has all the income). It's based on the Lorenz curve and is widely used to measure inequality.
What does a Gini coefficient of 0.4 mean?
A Gini coefficient of 0.4 indicates moderate to high inequality. It means there's significant income disparity - the distribution is not equal, but not extremely unequal either. Many countries have Gini coefficients around 0.4, indicating moderate inequality levels.
What is a good Gini coefficient?
Lower Gini coefficients indicate better (more equal) income distribution. Gini coefficients below 0.30 are considered low inequality (relatively equal, like Scandinavian countries). Coefficients of 0.30-0.40 are moderate (typical for many developed countries). Above 0.40 indicates high inequality, and above 0.50 indicates very high inequality.
How is the Gini coefficient calculated?
The Gini coefficient is calculated from the Lorenz curve, which plots cumulative income proportion against cumulative population proportion. The Gini coefficient equals 1 minus twice the area under the Lorenz curve. It can also be calculated using ranked income data with the formula: Gini = (2/(n²×μ)) × Σ(i×y_i) - (n+1)/n.
Can the Gini coefficient be greater than 1?
No, the Gini coefficient is always between 0 and 1. A value of 0 represents perfect equality, and 1 represents perfect inequality. In practice, most countries have values between 0.25 and 0.60. Values above 0.60 are extremely rare and indicate very high inequality.
What are the limitations of the Gini coefficient?
The Gini coefficient doesn't show where inequality occurs (whether it's at the top, middle, or bottom of the distribution). It's also sensitive to outliers. Different distributions can have the same Gini coefficient, and it doesn't capture all aspects of inequality (like absolute poverty levels). However, it's still a widely used and useful measure of overall inequality.