1. What is an Income Percentile?

An income percentile indicates what percentage of the population earns less than a given income. For example, if your income is at the 75th percentile, you earn more than 75% of the population.

2. How Does the Calculator Work?

The calculator uses the percentile formula:

Where:

• \( Rank \) — Your position in the income distribution
• \( Total \) — Total number of people in the comparison group

Explanation: The formula calculates what percentage of the total population has incomes below yours.

3. Importance of Income Percentiles

Details: Income percentiles help understand economic standing relative to others, assess income inequality, and make informed financial decisions.

4. Using the Calculator

Tips: Enter your rank (position in income distribution) and total population size. Both must be positive integers with rank ≤ total.

5. Frequently Asked Questions (FAQ)

Q1: Where can I find my income rank?
A: The US Census Bureau and other economic research organizations publish income distribution data.

Q2: What's considered a good income percentile?
A: This depends on location and cost of living. Generally, 50th percentile is median, above 80th is considered high income.

Q3: How often do income percentiles change?
A: Income distributions are typically updated annually, but significant shifts usually occur over longer periods.

Q4: Does this account for household size?
A: No, this is a simple calculator. For more accurate comparisons, use household income percentiles adjusted for household size.

Q5: How does this differ from wealth percentiles?
A: Income measures annual earnings, while wealth measures total net worth (assets minus liabilities).