MIT Living Wage Calculator
Massachusetts institute of technology living wage calculator works out Basic-needs budget before tax and Basic-needs budget a month from Food (annual), Child care (annual) and Health care (annual). The default figures on this page give living wage of 20.43 per hour; change any entry and the result, the working and the sources update together.
Your figures
Updates as you typeHow this is worked out
5 steps
- Basic-needs budget = 34000 a year (2833.33 a month)
- Gross up for tax: 34000 / (1 - 0.2) = 42500
- Taxes covered = 8500
- Per worker = 42500 / 1 = 42500
- Living wage = 42500 / 2080 h = 20.4327 an hour
Where the budget goestable
| category | annual | monthly | shareOfBudgetPercent |
|---|---|---|---|
| Food | 4,500 | 375 | 13.235294 |
| Health care | 3,000 | 250 | 8.823529 |
| Housing | 12,000 | 1,000 | 35.294118 |
| Transportation | 6,000 | 500 | 17.647059 |
| Internet and mobile | 900 | 75 | 2.647059 |
| Civic engagement | 2,600 | 216.666667 | 7.647059 |
| Other necessities | 5,000 | 416.666667 | 14.705882 |
Its 4 worked examples are re-run on every release, last on 15 September 2026. What changed
Sources and references
2 sources
Keep this result
Save it, change one figure, then compare the two
The calculation stays free. Save this scenario, adjust one assumption, save that too, and put them side by side to see exactly what the change costs you. A free account keeps 5 scenarios and 2 comparisons; Personal makes both unlimited and adds exports and private links. Nothing is saved unless you press Save.
What the massachusetts institute of technology living wage calculator calculates
Turns a household basic-needs budget into the hourly living wage a full-time worker must earn, grossing up for taxes and splitting the budget across working adults, and compares the equivalent income between two places.
How to use this massachusetts institute of technology living wage calculator
Enter Food (annual), Child care (annual), Health care (annual) and Housing (annual). Basic-needs budget before tax updates as you type. Change one figure at a time to see what drives the result.
How the result is worked out
Open “How this is worked out” beside the result for the step-by-step calculation behind Basic-needs budget before tax, Basic-needs budget a month and Taxes to be covered.
The method follows Living Wage Calculator (Living Wage Institute / MIT), Methodology - basic needs are food, child care, health care, housing, transportation, internet and mobile, civic engagement and other necessities; taxes are added to the budget; full-time work is 40 hours a week for 52 weeks (2,080 hours) and the family budget is divided by the number of workers and U.S. Bureau of Labor Statistics, "Using the Consumer Price Index for escalation" - an amount is escalated between two places or periods by the ratio of their index values.
What you can compare
Change one input at a time to see how it affects Basic-needs budget before tax, Basic-needs budget a month and Taxes to be covered. The inputs you can vary are Food (annual), Child care (annual), Health care (annual), Housing (annual), Transportation (annual) and Internet and mobile (annual).
Results are general information, not financial, tax, legal, medical or engineering advice. Check any decision that matters with a qualified professional.
See something wrong? Report a problem with this calculator
Frequently asked questions
How does MIT calculate living wage?
Turns a household basic-needs budget into the hourly living wage a full-time worker must earn, grossing up for taxes and splitting the budget across working adults, and compares the equivalent income between two places. Open “How this is worked out” beside the result to see each step for your own figures.
What is the MIT living wage in Massachusetts?
On the figures this page opens with — food (annual) 4,500 per year, child care (annual) 0 per year, health care (annual) 3,000 per year and housing (annual) 12,000 per year — the living wage is 20.43 per hour. No single number fits everyone: change any figure above and the answer updates as you type, with each step of the arithmetic beside it.
Is the MIT living wage calculator accurate?
The massachusetts institute of technology living wage calculator follows the stated method, but the result is only as reliable as Food (annual), Child care (annual), Health care (annual), Housing (annual) and Transportation (annual) and the assumptions shown. Check the working and sources before relying on it for an important decision.
Is $2000 a month a livable wage?
Turns a household basic-needs budget into the hourly living wage a full-time worker must earn, grossing up for taxes and splitting the budget across working adults, and compares the equivalent income between two places. On the figures this page opens with — food (annual) 4,500 per year, child care (annual) 0 per year and health care (annual) 3,000 per year — the living wage is 20.43 per hour. Put your own figures in their place and the working updates beside the result.
What information do I need for the massachusetts institute of technology living wage calculator?
You need Food (annual), Child care (annual), Health care (annual), Housing (annual), Transportation (annual), Internet and mobile (annual), Civic engagement (annual) and Other necessities (annual). The page opens with default figures that give living wage of 20.43 per hour, so you can see the scale before entering your own.
What does this massachusetts institute of technology living wage calculator show?
It shows Basic-needs budget before tax, Basic-needs budget a month, Taxes to be covered, Required gross household income, Required gross income per worker, Living wage, Shortfall against the wage earned and Annual shortfall per worker, with the working and any warnings for your entries.