Nerdwallet Cost Of Living Calculator (2024)

FAQs

Is the NerdWallet cost of living calculator reliable? ›

NerdWallet's cost of living calculator is powered by data from The Council for Community and Economic Research (C2ER). According to the council, “C2ER produces the Cost of Living Index to provide a useful and reasonably accurate measure of living cost differences among urban areas.

To do this we first calculate average living expenses based on your current location and desired location. These expenses are adjusted based on your annual income and household size. Next, the tax category uses tax data at the federal, state and local level to determine estimated tax burden.

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.

Gusto's paycheck calculator is one of the most detailed on the market. Some other calculators may only include estimations of federal and state taxes, but Gusto lets you enter data directly from your W-4 and state tax filings in order to get the most accurate picture of take-home pay.

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.

C2ER Cost of Living Index – the most reliable source of city-to-city comparisons of key consumer costs available anywhere. Discover why C2ER's Cost of Living Index is the most trusted resource for historical and current cost of living data since 1968.

Cost of Living Trends for 2024

The CPI for all items, excluding food and energy, rose 3.4% year-over-year for May 2024, exceeding the 3.1% year-over-year increase seen in January 2024.

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.

Mississippi. Mississippi has the lowest cost of living in the United States. With a cost of living index of 83.3, expenses are nearly 17% less than the national average. Mississippi's housing costs are the lowest in the nation.

What state has the highest cost of living? ›

Hawaii ranks No. 1 as the most expensive state based on monthly household bills. Hawaii residents spend an average of $3,091 each month on utilities, rent/mortgage and other common household costs. Residents spend 45% above the national average.

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.

Enter Your Monthly Income

50% of your net income should go towards living expenses and essentials (Needs), 20% of your net income should go towards debt reduction and savings (Debt Reduction and Savings), and 30% of your net income should go towards discretionary spending (Wants).

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.

What Does it Mean When the Cost of Living Index Is Below 100? Cost of living indexes have a baseline of 100, with figures above or below representing a city as more expensive or less expensive. An index below 100 means the region or area is less expensive to live in than the national average.

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.

Expenses typically factored into cost of living calculations include housing, food and taxes. It may also include such expenses as transportation, health care, entertainment and education. Cost of living calculators are useful in comparing the expenses associated with different cities or regions.