Income Parity Calculator

Formula

To calculate the Income Parity (IP):

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

Where:

$\text{IP}$ is the Income Parity
$\text{I1}$ is the Income in 1st Currency
$\text{I2}$ is the Income in 2nd Currency

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:

Income in 1st Currency (I1) = $5000
Income in 2nd Currency (I2) = $4000

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:

Income in 1st Currency (I1) = $3000
Income in 2nd Currency (I2) = $4500

Step 1: Use the formula:

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

The Income Parity is 0.67.