# How to Calculate Gini Coefficient in Python?

By Shivang Yadav Last updated : December 7, 2023

## Prerequisite

To understand this solution, you should have the basic knowledge of the following Python topics:

## Gini's Coefficient

Gini's Coefficient, also known as Gini's index or Gini's ratio is a statistical method to measure the income distribution of a population.

The values of Gini's Coefficient range from 0 to 1.

• 0 denotes perfect income equality (each individual of the population has the same income).
• 1 denotes perfect income inequality (one individual of the population has all income).

## Calculating Gini's Coefficient

To calculate Gini's Coefficient in Python there is no direct method present. Here, we will define a function to calculate Gini's Coefficient using its formula.

## Python program to calculate Gini Coefficient

```# Program to calculate Gini's coefficient in python
import numpy as np

def giniCoeff(x):
total = 0
for i, xi in enumerate(x[:-1], 1):
total += np.sum(np.abs(xi - x[i:]))
return total / (len(x) ** 2 * np.mean(x))

populationIncome = np.array([50, 20, 100, 5, 10, 75, 150])
print("The incomes of all individuals of population(in 1000's) : \n", populationIncome)

ginis = giniCoeff(populationIncome)
print("Gini's Coefficient for the income population ", ginis)
```

### Output

The output of the above program is:

```The incomes of all individuals of population(in 1000's) :
[ 50  20 100   5  10  75 150]
Gini's Coefficient for the income population  0.46689895470383275
```