Income Parity Calculator





Formula

To calculate the Income Parity (IP):

\[ \text{IP} = \frac{\text{I1}}{\text{I2}} \]

Where:

What is Income Parity?

Income Parity is a measure used to compare incomes between two different currencies. It is calculated by dividing the income in one currency by the income in the reference currency.

Example Calculation 1

Let's assume the following values:

Step 1: Use the formula:

\[ \text{IP} = \frac{5000}{4000} = 1.25 \]

The Income Parity is 1.25.

Example Calculation 2

Let's assume the following values:

Step 1: Use the formula:

\[ \text{IP} = \frac{3000}{4500} = 0.67 \]

The Income Parity is 0.67.