Nerd Wallet Cost Of Living Calculator (2024)

FAQs

Is The cost of living calculator accurate? ›

These calculators are only as good as the data they use. Whether you're looking for cost of living comparison by state or to compare cost of living between cities, you'll want the most current information. Most calculators are out of date.

How cost of living is calculated. Typically, cost of living is determined by comparing the prices of a range of goods and services on which consumers spend their money. Costs are broken down and weighted by category, like health care, food or housing.

You can calculate this by using the following formula:Current employee salary x cost of living increase = Cost of living raiseFor the abovementioned employee, the calculation would be as follows: 40,000 x 0.02 = 800This means that the employee would receive an $800 raise and would now make $40,800 annually.

Numbeo's data points on crime have been criticized by academics and by the media as unreliable and, at times, misleading.

If one wants the most accurate measure of inflation as it impacts households, one should use the CPI, as it only picks up prices of products purchased by households. That is why economists sometimes refer to the CPI as the cost-of-living index.

Mississippi: According to World Population Review, in 2023, Mississippi holds the title of the cheapest state to live in the United States. Its cost of living index is 85, and overall costs in the state are 17% lower than the national average.

There are limitations to using CPI as an index since it does not measure the actual costs of living in a given area or region. A typical cost of living indicator shows changes in costs over time that are required to maintain a specific standard of living.

Year-over-year, the consumer price index (a measure of the change in pricing for consumer goods and services) rose 3.1% in 2024, per the U.S. Bureau of Labor Statistics — less growth than the 5.6% year-over-year from 2022 to 2023 and 6% from 2021 to 2022, but an increase nonetheless.

Hawaii is the State with the Highest Cost of Living

The sunny state of Hawaii is the most expensive state to live in, with an average annual cost of living of $55,491. Despite having the highest cost of living ($55,491), Hawaii also has the lowest annual average salary ($61,420) among these 10 states.

What is the US average cost of living? ›

The Cost of Living in the United States

The average household in the United States spends $61,334 a year on expenses. On average, 34.9% of spending, or roughly $1,784 a month, is dedicated to housing and housing-related costs. The median price of a single-family home in the United States is $273,992.

Generally, experts recommend spending no more than 30% of monthly pre-tax income on housing. However, it's not always that simple. According to the U.S. Census Bureau, between 2017 and 2021, over 40% of renter households (19 million) spent more than 30% of their income on rent.

2022 calendar year COLA factor will be 15.93%. Calculate the COLA amount by multiplying the 2023 calendar year COLA factor to the base allowance. The 2023 calendar year payable COLA amount is $159.30. The new allowance is $1,159.30.

For 2024, the Social Security Administration has announced a COLA increase of 3.2%. This adjustment is based on the Consumer Price Index (CPI), which measures changes in the cost of goods and services.

There is no legal requirement for employers to provide cost-of-living adjustments. However, employees who are part of a union may have COLA pay as a part of their contract. For most employers, however, cost-of-living adjustments are entirely discretionary.

Each year, the SSA automatically applies a COLA to payments made to those receiving Social Security and SSI. For 2024, the COLA increase is 3.2%, calculated based on the rise in the CPI-W from the third quarter of 2022 through the third quarter of 2023.

A cost of living index includes food, shelter, transportation, energy, clothing, healthcare, and childcare. A cost of living index can track how much basic expenses rise over time. The Economic Policy Institute and the Council for Community and Economic Research calculate cost of living indexes.

This represents the maximum amount of inflation that has occurred since retirement. The 2023 calendar year rate of inflation is 4.12%. Use the lesser of the two numbers from steps 1 and 2, and this determines your COLA factor. 2022 calendar year COLA factor will be 2.00%.

You should try to notify your employer that you would like to discuss a cost of living pay increase with them and ask if you can schedule a meeting at a time that is convenient to them. This gives the employer notice of the topic you want to discuss and also shows you respect their time.