Wage Gap Calculator: Pay Difference Between Two Groups
Work out the wage gap between two groups — the percentage difference behind headlines about gender, race, and occupation pay gaps.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Wage gap | Dollar gap |
|---|---|---|
| $60,000 vs $49,200 | -18.00% | -10,800 |
| $32/hr vs $26/hr | -18.75% | -6 |
| $125,000 vs $105,000 | -16.00% | -20,000 |
| $48,000 vs $46,800 | -2.50% | -1,200 |
How This Calculator Works
Enter the higher-paid group's average wage and the lower-paid group's average wage, on the same basis (both annual, both hourly). The calculator gives the percentage gap and the dollar gap, expressed against the higher figure.
The Formula
Percentage Change
Old is the starting value, New is the ending value
Worked Example
If the higher group earns $60,000 and the lower group $49,200, the wage gap is 18% — or roughly the figure usually quoted for the US gender pay gap on raw earnings. The lower group earns $10,800 less for the same period.
Key Insight
Raw wage gaps mix three different effects: pay for the same work, differences in hours worked, and differences in occupation and experience. The unadjusted gap here is the headline number — useful for the broad outcome — but understanding which share comes from same-job pay versus job mix requires controlled studies.
Frequently Asked Questions
How is the wage gap calculated?
Subtract the lower wage from the higher wage, divide by the higher wage, and multiply by 100. The result is the lower group's shortfall as a share of the higher group's pay.
What is the difference between unadjusted and adjusted gaps?
Unadjusted gaps compare raw averages — affected by hours, occupation, and experience. Adjusted gaps control for those factors and isolate the pay difference for similar work. Both are valid, but they answer different questions.
How does this apply to gender pay gaps?
Headline gender pay gaps cite the unadjusted figure — full-time women's median earnings against full-time men's. The same math applies: lower median minus higher median, divided by the higher.
Why use median and not average?
Medians are less skewed by extreme high earners. Most official pay gap reporting uses medians for that reason; means can be higher because the very top of the distribution pulls them up.
Can the result be negative?
If the 'lower' group is actually higher-paid on the figures you enter, the gap turns positive in the other direction. Order does not matter to the math — only to the interpretation.
Related Calculators
Methodology & Review
The wage gap is the lower wage minus the higher wage, divided by the higher wage, expressed as a percentage. The figure here is the simple unadjusted gap; controlled gaps that hold for hours worked, role, and experience are calculated separately and usually smaller.
Written by Ugo Candido · Last updated May 17, 2026.