Create Date: January 20, 2025
Last Modified Date: January 20, 2025
Per capita is a way of simplifying and normalizing data so it is able to be evenly compared and discussed with greater understanding. The way you calculate this is with two variables:
Once you have the values for your scenario you can use the following formula to calculate the per capita value:
When you use this tool you will get a single value that is a plain number which can be a decimal number as well. This represents the "per unit" or "per person" value which can give people a better understanding of an issue or topic.
Per capita is most often used when trying to compare two different values but those scenarios do not have an equal number of total units. For example, if you wanted to compare the total income of two cities where one has 5,000,000 people and the other only has 1,000,000 people, without using per capita it would be clear that the greater population city would generate way more money. But with per capita, we may be able to find that despite generating less money, the smaller city's population may effectively generate more income per person. This can broaden the understanding and tell us more information about a scenario.
If you want to find the per capita value of a certain stat you can use this tool to do so. Simply follow these steps:
If we want to get a better understanding of the economic productivity of the USA compared to another country, let's say India, we can get the GDP per capita to get a proper comparison due to the striking difference in populations. We can start with the USA. We know the recent GDP was 21 trillion so we will enter that into the amount field and then we will enter the total population, 330 million, in the second field. We can now hit calculate and we get a GDP per capita of $63,636,36. This means on average each US citizen contributes about $63,363 to the country's GDP.
Since we are comparing the economic output of the USA and India we now need to find the GDP per capita of India. With a GDP of about 3.94 trillion USD we can enter that value into the amount field, then we will enter their population, 1.458 billion, into the second field. We can now hit calculate and get an answer of $2,702.50. This outlines a stark difference in the economic output attributed to each citizen and can now be a better set of numbers to work with in a discussion about GDP output of each nation.
Per capita can be a great way to compare two different pieces of information on a more even playing field. If the values you are analyzing have widely varying values this can be the best way to get a more realistic and honest comparison.
According to Worldometer's website, Luxembourg has the highest income based on per capita. You would never include them in the conversation if you took the sheer total value, making it a great example of why per capita can explain certain scenarios better.