Lorenz Curve Calculator — Formule
## How to Calculate the Lorenz Curve
### Method
1. Sort incomes from lowest to highest
2. Calculate cumulative population share: 20%, 40%, 60%, 80%, 100%
3. Calculate cumulative income share at each point
4. Plot cumulative income share (y) vs. cumulative population share (x)
The 45-degree diagonal represents perfect equality. The Lorenz curve bows below; the area between the diagonal and the curve (relative to the total area below the diagonal) is the Gini coefficient.
### Method
1. Sort incomes from lowest to highest
2. Calculate cumulative population share: 20%, 40%, 60%, 80%, 100%
3. Calculate cumulative income share at each point
4. Plot cumulative income share (y) vs. cumulative population share (x)
The 45-degree diagonal represents perfect equality. The Lorenz curve bows below; the area between the diagonal and the curve (relative to the total area below the diagonal) is the Gini coefficient.
Exemple Résolu
Five people earn 10, 20, 30, 40, 100.
- Total income = 200
- Bottom 20%: 10/200 = 5%
- Bottom 40%: 30/200 = 15%
- Bottom 60%: 60/200 = 30%
- Bottom 80%: 100/200 = 50%
- Top 20% earns 100/200 = 50% of total income