Pay Gap Calculator
Calculate pay gap between two groups. Compare salaries and measure pay disparity for any demographic or category.
How to Use This Calculator
- Enter labels for Group 1 and Group 2 (e.g., "Men" and "Women").
- Enter average salary for each group.
- The calculator displays pay gap percentage and difference.
- Use this to measure pay disparity and understand wage differences.
Pay Gap Formula
Pay gap is calculated from salary difference:
Difference = Higher Salary - Lower Salary
Lower-to-Higher Ratio = (Lower Salary / Higher Salary) × 100
Example: Group 1 $75,000, Group 2 $65,000: Gap = ((75,000 - 65,000) / 75,000) × 100 = 13.3%. Difference = $10,000. Lower group earns 86.7% of higher group. Pay gaps vary by industry, occupation, and location. The calculator works for any two groups.
Full Description
The Pay Gap Calculator measures the difference in average earnings between two groups, expressed as a percentage of the higher group\'s earnings. Pay gaps can exist between any demographic categories: gender, race/ethnicity, age, education, or any other grouping. Understanding pay gaps helps identify systemic inequalities and work toward pay equity.
The pay gap is calculated as ((Higher Salary - Lower Salary) / Higher Salary) × 100. The gap reflects systemic inequalities including occupational segregation (groups working in different fields), discrimination, negotiation differences, experience gaps, caregiving responsibilities, and bias. Pay gaps are not explained by individual choices alone—systemic factors play a major role. Closing pay gaps requires addressing these issues through pay transparency, equal pay laws, anti-discrimination policies, and cultural change.
This calculator helps you measure pay disparity. Enter group labels and salaries, and it calculates pay gap percentage, difference, and ratio. Use it to understand wage differences, measure pay equity, analyze compensation data, or advocate for equal pay. Remember, closing pay gaps requires both individual action and systemic change!
Frequently Asked Questions
What is a pay gap?
A pay gap is the difference in average earnings between two groups, expressed as a percentage of the higher group's earnings. Common gaps: gender (men vs women), race/ethnicity, age, education, or any demographic category. Pay gaps reflect systemic inequalities, not just individual choices.
How is pay gap calculated?
Pay Gap % = ((Higher Salary - Lower Salary) / Higher Salary) × 100. Example: Group 1 $75,000, Group 2 $65,000: Gap = ((75,000 - 65,000) / 75,000) × 100 = 13.3%. Lower group earns 86.7% of higher group. The calculator shows both metrics.
Why do pay gaps exist?
Factors: Occupational segregation (groups in different fields), discrimination, negotiation differences, experience gaps, caregiving responsibilities, part-time work, and systemic bias. Pay gaps are not explained by individual choices alone—systemic factors play a major role. Closing gaps requires addressing these issues.
How can we close pay gaps?
Solutions: Pay transparency, equal pay laws, anti-discrimination policies, flexible work arrangements, shared caregiving, mentorship programs, negotiation training, and addressing occupational segregation. Companies should conduct pay audits, eliminate bias, and promote equity. Individual action helps, but systemic change is needed.