Income Percentile Calculator

Formula

The formula to calculate the income percentile is:

\[ IP = \left( \frac{R}{T} \right) \times 100 \]

Where:

\( IP \) is the income percentile (%)
\( R \) is the rank of individual's income in the income distribution
\( T \) is the total number of individuals in the income distribution

What is an Income Percentile?

An income percentile is a statistical tool that ranks an individual’s income level compared to all other individuals in the same group or population. It shows what percentage of the population that individual’s income surpasses. For example, if someone is in the 70th income percentile, it means their income is higher than 70% of the population. This measure is often used in economic studies and reports to analyze income distribution and inequality.

Example Calculation

Let's assume the following values:

Rank of Individual's Income (R): 350
Total Number of Individuals (T): 500

Step 1: Calculate the Income Percentile (IP):

\[ IP = \left( \frac{350}{500} \right) \times 100 = 70\% \]

The income percentile is 70%.