Cost of Living Raise Calculator 2019
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Reviewed by Calculator Editorial Team
Use this calculator to determine how much your salary should increase in 2019 to account for the cost of living. The tool accounts for inflation rates and regional differences to provide an accurate adjustment amount.
How to Use This Calculator
Enter your current salary and select your location to calculate the recommended raise based on 2019 cost of living data. The calculator will show you:
- The percentage increase needed to maintain your purchasing power
- The exact dollar amount of the raise
- A comparison with national averages
For the most accurate results, use your pre-tax salary and select the region where you live. The calculator uses the Consumer Price Index (CPI) for 2019 to determine appropriate adjustments.
Formula Explained
The cost of living raise is calculated using the following formula:
Cost of Living Raise Formula
Raise Amount = (Current Salary × (CPI Increase - 1)) + (Regional Adjustment × Current Salary)
Where:
- CPI Increase = 2019 CPI for your location divided by 2018 CPI
- Regional Adjustment = Additional percentage based on your specific area's cost of living
The formula accounts for both general inflation and local cost differences to provide a comprehensive adjustment amount.
Worked Example
Let's calculate a raise for someone earning $50,000 in a city with a 2019 CPI increase of 2.5% and a regional adjustment of 1.2%.
Example Calculation
Raise Amount = ($50,000 × (1.025 - 1)) + (0.012 × $50,000)
= $50,000 × 0.025 + $600
= $1,250 + $600
= $1,850
This means the employee should receive a $1,850 raise to maintain their purchasing power in 2019.
Interpreting Results
The calculator provides several key pieces of information to help you understand the raise:
- Percentage Increase: Shows how much your salary needs to grow to keep up with inflation
- Dollar Amount: The exact raise needed to maintain your current standard of living
- Comparison Chart: Shows how your raise compares to national and regional averages
Remember that cost of living varies significantly between cities and neighborhoods, so local adjustments are important for accurate results.
Frequently Asked Questions
How does the calculator determine the appropriate raise percentage?
The calculator uses the 2019 Consumer Price Index (CPI) data for your location, which measures changes in the cost of living. It compares this to the previous year's CPI to determine the necessary adjustment.
Should I include benefits in my salary calculation?
For the most accurate results, use your pre-tax salary. Benefits are typically not included in cost of living calculations as they don't directly affect your purchasing power.
How often should I adjust my salary for cost of living?
Annual adjustments are recommended, especially when significant economic changes occur. However, you can use this calculator at any time to check your current situation.