Low Cost (Rural/Small Towns)
Average Cost (Standard US City)
High Cost (Major Metro: NY, SF, DC)
Results Analysis
Hourly Living Wage (Per Adult)
$0.00
Annual Income Required (Total Household)
$0.00
This estimate covers food, childcare, healthcare, housing, transportation, and basic necessities plus taxes. It does not include savings, investments, or discretionary spending.
Understanding the Living Wage Calculation
The Living Wage Calculator is designed to estimate the minimum income standard that, if met, provides a person or family with the ability to meet their basic needs without relying on public assistance or outside help. Unlike the federal minimum wage, which is a fixed statutory limit, a living wage is based on the actual costs of goods and services in a specific geographic area.
How This Calculation Works
This tool uses a simplified model based on the methodology pioneered by MIT. We aggregate several key data points to determine the final hourly rate:
Housing: Based on Fair Market Rents for 1 or 2 bedroom apartments depending on family size.
Food: Uses USDA food plans for "Low-Cost" nutritious meals prepared at home.
Childcare: Accounts for the high cost of center-based care for children under age 5.
Healthcare: Includes insurance premiums and typical out-of-pocket medical expenses.
Taxes: Estimates Federal, State, and FICA payroll taxes based on the calculated income level.
Example Scenarios
Living wage requirements shift dramatically based on household composition:
Family Composition
Typical Hourly Wage
Annual Total
1 Adult, 0 Children
~$18.50 – $25.00
$38,000 – $52,000
1 Adult, 1 Child
~$35.00 – $48.00
$72,000 – $99,000
2 Adults (Both Working), 2 Children
~$26.00 – $32.00 (each)
$108,000 – $133,000
Minimum Wage vs. Living Wage
In most regions of the United States, the federal minimum wage ($7.25) is significantly lower than the living wage. Even in states with $15.00 minimum wages, the cost of living for families with children often exceeds that income level. This gap highlights the "working poor" phenomenon, where full-time employment is insufficient to cover basic survival costs without government subsidies.
function calculateLivingWage() {
var adults = parseInt(document.getElementById("numAdults").value);
var children = parseInt(document.getElementById("numChildren").value);
var multiplier = parseFloat(document.getElementById("costTier").value);
// Base yearly costs (Estimated averages)
var baseHousing = 13200; // Single adult base
var baseFood = 4600; // Single adult base
var baseHealth = 3200; // Single adult base
var baseTransp = 5400; // Single adult base
var baseOther = 4800; // Misc basics
// Adjustments for household size
var totalHousing = baseHousing + (children > 0 ? 6000 : 0) + (adults > 1 ? 2000 : 0);
var totalFood = (baseFood * adults) + (children * 3200);
var totalHealth = (baseHealth * adults) + (children * 2500);
var totalTransp = (baseTransp * adults) + (children * 800);
var totalOther = (baseOther * (adults + children * 0.5));
// Childcare logic (Significant cost factor)
var childcareCost = children * 11000; // Average annual cost per child
// Total Pre-tax expenses
var subTotal = (totalHousing + totalFood + totalHealth + totalTransp + totalOther + childcareCost) * multiplier;
// Tax estimation (approx 18% effective for these brackets)
var annualRequired = subTotal / 0.82;
// Standard full-time hours (2080 per year)
var totalWorkHours = 2080 * adults;
var hourlyRate = annualRequired / totalWorkHours;
// Display results
document.getElementById("hourlyWageResult").innerText = "$" + hourlyRate.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("annualIncomeResult").innerText = "$" + annualRequired.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0});
document.getElementById("resultsArea").style.display = "block";
// Scroll to results
document.getElementById("resultsArea").scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}