Poverty Level Calculator

Formula

To calculate the Poverty Level:

\[ PL = \left( \frac{H \times P}{100} \right) \]

Where:

$PL$ is the Poverty Level (\$)
$H$ is the Household Income (\$)
$P$ is the Poverty Threshold Percentage (decimal)

What is a Poverty Level?

A poverty level, also known as the poverty line or poverty threshold, is the minimum income level necessary to meet basic needs such as food, clothing, and shelter. It is determined by the government and varies depending on factors such as location, family size, and age. Individuals or families with income below the poverty level are considered to be in poverty and may be eligible for certain types of government assistance.

Example Calculation 1

Let's assume the following values:

Household Income ($H$) = $50,000
Poverty Threshold Percentage ($P$) = 0.2

Using the formula:

\[ PL = \left( \frac{50000 \times 0.2}{100} \right) = 10000 \]

The Poverty Level is $10,000.

Example Calculation 2

Let's assume the following values:

Household Income ($H$) = $30,000
Poverty Threshold Percentage ($P$) = 0.15

Using the formula:

\[ PL = \left( \frac{30000 \times 0.15}{100} \right) = 4500 \]

The Poverty Level is $4,500.