Calculate your organization's gender pay gap by comparing median male and female earnings. Track unadjusted and adjusted pay gaps for compliance and equity.
The gender pay gap measures the difference in median (or average) earnings between male and female employees across an entire organization. Unlike pay equity analysis (which compares "like for like" within the same role), the gender pay gap captures structural differences in how men and women are distributed across roles, levels, and functions.
This Gender Pay Gap Calculator computes both median and mean pay gaps. The median gap is the standard used in most country-level reporting (UK, EU). The mean gap is more sensitive to outliers (e.g., a few very highly paid executives). Both provide important but different insights into organizational gender demographics and compensation structure.
Understanding your gender pay gap is increasingly required by regulators and expected by employees, investors, and customers. The gap is driven by factors including occupational segregation, career interruption patterns, promotion rate disparities, and negotiation dynamics. Closing it requires addressing these root causes, not just adjusting individual salaries.
Gender pay gap reporting is mandatory in many jurisdictions and expected by stakeholders. This calculator helps you compute the headline metric Having a precise figure at your fingertips empowers better planning and more confident decisions. Manual calculations are error-prone and time-consuming; this tool delivers verified results in seconds so you can focus on strategy., track progress over time, and understand the gap's composition to design targeted interventions that address root causes rather than just symptoms.
Median Gender Pay Gap (%) = ((Median Male Pay − Median Female Pay) / Median Male Pay) × 100 Mean Gender Pay Gap (%) = ((Mean Male Pay − Mean Female Pay) / Mean Male Pay) × 100
Result: 11.1% median gap; 12.8% mean gap
Median gap = ($72,000 − $64,000) / $72,000 = 11.1%. Mean gap = ($78,000 − $68,000) / $78,000 = 12.8%. Both are below the national average but indicate room for improvement.
The gender pay gap and pay equity are related but distinct concepts. Pay equity asks: "Do we pay men and women fairly for the same work?" The pay gap asks: "Do men and women earn similar amounts across our organization?" You can have perfect pay equity (fair within roles) but still a large pay gap if women are concentrated in lower-paid roles or levels.
The UK requires all employers with 250+ employees to report median and mean gender pay gaps annually. The EU's Pay Transparency Directive (effective 2026) requires similar reporting. Many U.S. states have or are considering pay transparency and reporting requirements. Proactive reporting demonstrates commitment regardless of legal requirements.
Effective gap closure requires a multi-pronged strategy: pipeline development (increase female candidates for technical and leadership roles), promotion equity (ensure equal promotion rates), pay structure (transparent ranges and consistent application), culture (flexible work, inclusive leadership), and measurement (track progress quarterly, not just annually).
The difference in median (or average) earnings between male and female employees across the entire organization. It reflects both pay equity within roles and the distribution of men and women across different roles, levels, and functions. The current U.S. unadjusted gap is approximately 16%.
The pay gap compares all men vs. all women in the organization (regardless of role). Pay equity compares men and women in the same or similar roles. An organization can have zero pay equity gaps (fair pay within roles) but still have a significant gender pay gap if women are underrepresented in senior or higher-paying roles.
Zero is the ultimate target. Top-performing organizations achieve gaps below 5%. The national average varies by country: U.S. is approximately 16%, UK approximately 14%, EU approximately 13%. Any gap warrants investigation and action to reduce it over time.
The median is the midpoint salary (50th percentile) and is not affected by extreme values. The mean (average) is pulled up by high earners. If your organization has many highly paid men at the top, the mean gap will be larger than the median gap.
Multiple factors: occupational segregation (women concentrated in lower-paying functions), career interruptions (disproportionate parenting responsibilities), promotion rate disparities, negotiation differences, and unconscious bias in hiring and compensation decisions. Keeping this factor in mind will improve the accuracy and usefulness of your overall calculations.
Address root causes: increase female representation in leadership and high-paying technical roles, ensure equitable promotion rates, support return-to-work transitions, implement structured salary negotiation processes, and provide mentorship and sponsorship for women. Following these guidelines will help ensure accurate results and better outcomes over time.