This calculator was developed by Giving What We Can with the support of Our World in Data. It was last updated in 2024.

Measuring the global income distribution is inherently very difficult. The various attempts to establish it, such as the World Inequality Database or GapMinder, use slightly different approaches and so arrive at different, though broadly similar, results. Our calculator therefore aims to give you the best possible sense of where you stand rather than an exact figure, and the results should be treated that way.

How do we calculate how wealthy you are?

The global income distribution is built from data published by the World Bank’s Poverty and Inequality Platform (PIP) for the most recent year available (currently 2022). Those are per-capita figures in international dollars at 2017 prices, which means they have already been adjusted for inflation and for differences in the cost of living between countries. PIP aims to measure disposable income, defined as the sum of labor and non-labor income (including transfers) less taxes and contributions.

The calculator then adjusts that data for inflation and purchasing power parity (PPP) to arrive at current income figures (as of 2022). The underlying data also comes from the World Bank.

How do we account for household size?

The calculator accounts for household size using the methodology of the World Bank’s Poverty and Inequality Platform, which is explained here. Household income is converted into per-capita values by simply dividing the total household income by the number of people in the household.

That rests on the assumption that everyone in the household consumes at the same level, or draws the same benefit from the total household income. Per-capita normalization is common in the literature on developing countries, because people living in poverty often have little scope for economies of scale in what they consume.

The World Bank does acknowledge that this assumption can be questioned. Where household members have different needs — children consuming less than adults, for example — using per-capita welfare can be misleading. For that reason organizations such as the OECD use different equivalence scales. The World Bank points to the lack of agreement on which equivalence scale to use in each country, and to the simplicity of per-capita estimates, as reasons for carrying on with them. 

Contact

If you have any questions about the calculator, just send us an email, call us on +49 (0)30 / 260 355 19, or book a free, independent donation consultation.

Mosquito nets against malaria

More than 1,000 children die from malaria every day. The Against Malaria Foundation (AMF) saves lives by distributing mosquito nets in developing countries to protect people from malaria. Because the mosquitoes that carry malaria are active at night, sleeping under a net substantially reduces the risk of catching it. One net protects two people from malaria for around three years. 

According to current analyses (as of April 2024) by the respected evaluator GiveWell, distributing a net through an AMF-supported program costs roughly $3.50-5.50. (Excluding contributions in kind from government, such as staff time.) We use a mid-point of $4.50 in the calculation.

Routine vaccinations for children

Many children in emerging and developing countries are inadequately vaccinated and so exposed to dangerous diseases. Childhood vaccines prevent two to three million deaths worldwide every year, and are considered one of the most cost-effective measures in child health.

New Incentives offers families in Nigeria small financial incentives to bring their children to clinics for routine vaccinations. That raises vaccination rates among children, prevents disease and saves children's lives. According to current analyses (as of May 2023) by the respected evaluator GiveWell, New Incentives incurs costs of $21.17 for each infant reached. So for every $21.17 donated, New Incentives protects one child from disease through vaccination.

How much does it cost to save a life?

Our recommendations in the area of "fighting poverty" are based on the analyses of the respected evaluator GiveWell. The organization invests more than 50,000 hours a year in research and analysis to find the aid organizations that save or improve the most lives per euro donated. On current calculations, the aid organizations GiveWell recommends and supports were able to save a life for an average of $5,000 in 2022. GiveWell explains here in detail what those calculations rest on.

Tax deductibility of donations

In Germany, Switzerland and Austria, donations to charitable causes can be deducted from tax, which reduces your tax burden and affects your net income after tax. The exact benefit depends on your tax rate and on whether a donation meets all the conditions for deductibility. At effektiv-spenden.org, all donations from Germany and Switzerland are currently tax-deductible.

For simplicity, the calculator does not currently take these possible tax benefits into account when working out your net income after any donation. So with the remaining household income shown, you could give a little more than indicated, or your actual net income after the donation could be a little higher (that is, you would be slightly wealthier than shown).

Contact

If you have any questions about the impact of a donation, just send us an email, call us on +49 (0)30 / 260 355 19, or book a free, independent donation consultation.