Gini Coefficient & Income Inequality Calculator

Calculate the Gini coefficient and assess income or wealth inequality for any dataset.

Enter a list of incomes, wealth, or values to instantly compute the Gini coefficient, visualize inequality, and interpret results. Useful for economics, finance, social sciences, and policy analysis.

Examples

Click on any example to load it into the calculator.

Country Income Distribution

Country

A sample of household incomes in a country.

Values: 12000, 15000, 18000, 50000, 90000, 120000, 250000, 500000

Currency: USD

Unit: household

Company Salary Distribution

Company

Salaries of employees in a company.

Values: 2500, 2600, 2700, 2800, 2900, 3000, 12000, 25000

Currency: USD

Unit: employee

Family Wealth Distribution

Family

Wealth distribution among family members.

Values: 10000, 10000, 10000, 10000, 50000

Currency: USD

Unit: person

Random Values

Random

A random set of values for demonstration.

Values: 5, 10, 15, 20, 25, 30, 35, 40, 100

Unit: entity

Other Titles
Understanding Gini Coefficient & Income Inequality Calculator: A Comprehensive Guide
Master the science of economic inequality measurement. Learn how to calculate, interpret, and apply the Gini coefficient for real-world analysis.

What is the Gini Coefficient?

  • Core Concepts and Definitions
  • Why Measure Inequality?
  • Gini vs Other Indices
The Gini coefficient is a statistical measure of income or wealth inequality within a group, country, or dataset. It ranges from 0 (perfect equality) to 1 (maximum inequality). A lower Gini indicates more equal distribution, while a higher Gini signals greater disparity.
Why is the Gini Coefficient Important?
Economists, policymakers, and researchers use the Gini coefficient to assess social and economic health, compare countries, and design policies to reduce inequality. It is widely used in finance, economics, and social sciences.
Gini vs Other Inequality Indices
While the Gini coefficient is the most popular measure, other indices like the Theil index and Atkinson index also exist. Gini is preferred for its simplicity and interpretability.

Key Metrics Explained:

  • Gini = 0: Perfect equality (everyone has the same income)
  • Gini = 1: Maximum inequality (one person has all the income)
  • Typical country Gini: 0.25-0.60

Step-by-Step Guide to Using the Calculator

  • Data Preparation
  • Input Methodology
  • Result Interpretation
To use the Gini Coefficient Calculator, gather your data (incomes, wealth, or values), enter them as a comma, space, or newline-separated list, and click Calculate. The tool will compute the Gini coefficient and display the results instantly.
1. Prepare Your Data
Ensure your data is accurate, positive, and represents the group you want to analyze. Remove outliers or errors for best results.
2. Enter Values and Calculate
Input your values in the calculator. You can specify currency and unit for context. Click Calculate to see the Gini coefficient and interpretation.
3. Interpret the Results
A Gini coefficient closer to 0 means more equality; closer to 1 means more inequality. The tool also provides a qualitative label (Low, Moderate, High) for easier understanding.

Interpretation Examples:

  • Gini = 0.18: Low inequality
  • Gini = 0.42: Moderate inequality
  • Gini = 0.61: High inequality

Real-World Applications of the Gini Coefficient

  • National Income Analysis
  • Corporate Pay Gap
  • Wealth Distribution Studies
The Gini coefficient is used by governments, NGOs, and researchers to analyze income and wealth distribution at national, regional, and organizational levels.
National and Global Comparisons
Countries are often ranked by their Gini coefficients to compare economic equality. Policymakers use these insights to design tax, welfare, and social programs.
Corporate and Organizational Analysis
Companies use the Gini coefficient to assess pay gaps and ensure fair compensation practices. It is also used in academic research and social policy analysis.
Wealth and Resource Distribution
The Gini coefficient helps in understanding the distribution of wealth, resources, or opportunities within any group or community.

Application Examples:

  • Country A: Gini = 0.32 (relatively equal)
  • Company X: Gini = 0.55 (high pay gap)
  • Family: Gini = 0.00 (perfect equality)

Common Misconceptions and Correct Methods

  • Myths About Gini
  • Calculation Pitfalls
  • Best Practices
Some believe the Gini coefficient is only for countries or that it requires complex statistics. In reality, it can be used for any group and is straightforward to calculate with the right formula.
Myth: Gini is Only for Countries
Gini can be applied to any dataset: companies, families, schools, or even sports teams.
Calculation Pitfalls
Errors often occur when negative or zero values are included, or when the data is not sorted. Always use positive values and check your data before calculation.
Best Practices
Use at least two values, ensure all are positive, and interpret results in context. Compare with similar groups for meaningful insights.

Common Mistakes:

  • Including negative values (not allowed)
  • Using only one value (not meaningful)
  • Forgetting to specify currency or unit (optional, but helpful)

Mathematical Derivation and Examples

  • Gini Formula
  • Worked Example
  • Advanced Analysis
The Gini coefficient is calculated as the mean of absolute differences between all pairs of values, divided by twice the mean. Formula: G = (1/(2n^2μ)) * Σ|xi - xj|, where n is the number of values and μ is the mean.
Worked Example
For values [10, 20, 30], mean is 20. Absolute differences: |10-20|=10, |10-30|=20, |20-30|=10. Sum = 40. Gini = 40/(23^220) = 0.111.
Advanced Analysis
For large datasets, the Gini coefficient can be approximated using the Lorenz curve. The calculator provides Lorenz curve data for visualization and deeper analysis.

Mathematical Examples:

  • Values: [10, 20, 30] → Gini = 0.111
  • Values: [1, 1, 1, 1] → Gini = 0 (perfect equality)
  • Values: [1, 2, 3, 4, 100] → Gini ≈ 0.72 (high inequality)