# Gini Coefficient

*Macro & Economy — Finicade finance glossary*

The Gini coefficient summarises inequality in a single number from 0 (everyone equal) to 1 (one person has everything). It's computed from the Lorenz curve, the gap between the actual income distribution and perfect equality. Its limitation is that a single number hides shape: two countries with the same Gini can differ completely in whether the gap sits between the poor and the middle or the middle and the very rich.

**Also known as:** Gini index, Lorenz curve, income inequality measure

**Related terms:** [Median Income](https://finicade.com/glossary/median-income), [Household Income](https://finicade.com/glossary/household-income), [Real Wages](https://finicade.com/glossary/real-wages), [GDP (Gross Domestic Product)](https://finicade.com/glossary/gdp), [Cost of Living](https://finicade.com/glossary/cost-of-living)

Source: https://finicade.com/glossary/gini-coefficient