This paper reviews the most popular methods of calculation poverty line (such as Cost- of-Basic-Needs method, Food Energy Intake method, Subjective poverty line…) and poverty indices ( such as poverty ratio, poverty gap index and Sen index). According to international recommendations, poverty line and poverty indices has been calculated for urban and rural areas based on 2300 calorie approach by using household income and expenditure survey's data for the period of 1996 to 2006. In addition, 95% interval confidence was calculated  for  poverty rate based on boot-strap method.

Results show that the share of the poor people decreased from %14.1 to %12.6, and %22.6 to 11.4%. in urban and rural area  during the period 1996-2006 respectivly.