Gender Pay Gap Calculator

Pay Gap Calculator

Calculate the pay gap between two groups or individuals. Understand salary differences and equity metrics across demographics.

Last updated: March 2026

Salary Comparison

Group/Person A

Group/Person B

Results

Pay Gap
13.33%
Group A earns 13.33% more based on higher salary
Higher Salary
$75,000
Group A
Lower Salary
$65,000
Group B
Dollar Difference
$10,000
Ratio
0.8667
Lower ÷ Higher

What is the Gender Pay Gap?

The gender pay gap refers to the average difference in earnings between men and women. It's typically calculated as the percentage difference between the average male salary and the average female salary within a specific context (country, industry, company, role).

It's important to note that the raw pay gap often reflects differences in job choices, experience, hours worked, and negotiation patterns—not solely discrimination. However, even when controlling for these factors, a significant unexplained gap often remains in many industries and economies.

This calculator helps you understand pay differences between any two groups or individuals. The gap percentage shows what percentage more (or less) one group earns compared to the other.

How to Calculate Pay Gap

The Standard Formula

Pay Gap % = ((Higher Salary − Lower Salary) / Higher Salary) × 100
Ratio = Lower Salary / Higher Salary
Difference = Higher Salary − Lower Salary

Step-by-Step Process

1. Enter salary for Group A (or first person)
2. Enter salary for Group B (or second person)
3. Identify which is higher and which is lower
4. Calculate the difference and express as percentage
5. Interpret the gap percentage

Example Calculation

Software Engineer Pay Comparison

Given:
Male engineer salary: $95,000
Female engineer salary: $82,000
Calculate:
Higher = $95,000
Lower = $82,000
Gap = ((95,000 - 82,000) / 95,000) × 100
Gap = (13,000 / 95,000) × 100
Result:
Pay Gap = 13.68%
(Males earn 13.68% more, or females earn 86.32% of male salary)

Frequently Asked Questions

Is pay gap the same as wage discrimination?

Not exactly. The pay gap is a statistical measure of average earnings differences. Discrimination is one potential cause, but the gap also reflects job choices, experience, hours worked, negotiation differences, and other factors.

What's a 'good' pay gap?

Ideally, there should be no systematic pay gaps when controlling for job, experience, hours, and role. However, many industries show unexplained gaps of 5-15% even after controlling for known factors.

How does this differ from equal pay for equal work?

Equal pay means same compensation for identical work. Pay gap measures average earnings across entire groups (which may do different work). The two concepts are related but distinct.

Why don't we compare by specific job?

You can! This calculator works for any salary comparison—by job title, industry, department, or experience level. For accurate analysis, compare within specific roles and experience bands.

Can there be a negative pay gap?

Yes. If the 'lower' group earns more than the 'higher' group, the gap is negative or inverted. For example, in some fields, women earn more on average than men.

What percentage gaps require action?

Economic research suggests unexplained gaps >5% warrant investigation. Many organizations aim for <3% after controlling for role, experience, and performance factors.

How do benefits affect the pay gap?

This calculator shows salary only. A complete pay analysis should include benefits, bonuses, stock options, and retirement contributions, which can vary significantly between groups.

Is comparing averages the best method?

Averages can mask important patterns. Analyzing pay by job level, department, and experience provides deeper insight. Median comparisons can also be more robust if data is skewed.

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