Enter the individual’s income and the national average income into the calculator to determine the Income Index. This calculator can also evaluate any of the variables given the others are known.

Income Index Formula

The following formula is used to calculate the Income Index.

II = (I / N) * 100


  • II is the Income Index (%)
  • I is the individual’s income ($)
  • N is the national average income ($)

To calculate the Income Index, divide the individual’s income by the national average income. Multiply the result by 100 to get the Income Index in percentage. This index shows how an individual’s income compares to the national average. A higher index indicates a higher income relative to the national average.

What is an Income Index?

An income index is a statistical measure that reflects the earning power of an individual, household, or population group. It is often used in economic studies and policy making to assess the economic well-being and standard of living in a particular area. The index may consider factors such as wages, benefits, cost of living, and inflation. It can also be used to compare income levels across different regions or periods.

How to Calculate Income Index?

The following steps outline how to calculate the Income Index.

  1. First, determine the individual’s income ($).
  2. Next, determine the national average income ($).
  3. Next, gather the formula from above = II = (I / N) * 100.
  4. Finally, calculate the Income Index.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

individual’s income ($) = 5000

national average income ($) = 3000