Enter the gross income after retirement ($) and the gross income before retirement ($) into the Wage Replacement Ratio Calculator. The calculator will evaluate and display the Wage Replacement Ratio. 

Wage Replacement Ratio Formula

The following formula is used to calculate the Wage Replacement Ratio. 

WPR = GIAR / GIBR *100

  • Where WPR is the Wage Replacement Ratio (%)
  • GIAR is the gross income after retirement ($) 
  • GIBR is the gross income before retirement ($) 

How to Calculate Wage Replacement Ratio?

The following example problems outline how to calculate Wage Replacement Ratio.

Example Problem #1:

  1. First, determine the gross income after retirement ($). 
    • The gross income after retirement ($) is given as: 3,000.
  2. Next, determine the gross income before retirement ($). 
    • The gross income before retirement ($) is provided as: 4,000.
  3. Finally, calculate the Wage Replacement Ratio using the equation above: 

WPR = GIAR / GIBR *100

The values given above are inserted into the equation below and the solution is calculated:

WPR = 3,000 / 4,000 *100 = 75.00 (%)


Example Problem #2: 

For this problem, the variables required are provided below:

gross income after retirement ($) = 6,000

gross income before retirement ($) = 7,000

Test your knowledge using the equation and check your answer with the calculator above.

WPR = GIAR / GIBR *100 = ?