Enter the income in 1st currency ($) and the income in 2nd currency ($) into the Calculator. The calculator will evaluate the Income Parity.

## Income Parity Formula

IP = I1 / I2

Variables:

- IP is the Income Parity ($/$)
- I1 is the income in 1st currency ($)
- I2 is the income in 2nd currency ($)

To calculate Income Parity, divide the income in one currency by the income in the reference currency.

## How to Calculate Income Parity?

The following steps outline how to calculate the Income Parity.

- First, determine the income in 1st currency ($).
- Next, determine the income in 2nd currency ($).
- Next, gather the formula from above = IP = I1 / I2.
- Finally, calculate the Income Parity.
- 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.

income in 1st currency ($) = 5000

income in 2nd currency ($) = 3000