What important information does a cost of living calculator provide?

A cost of living calculator provides information about the costs of living in a specific area or community, according to MIT. The calculator lists typical expenses, the living wage and average wages for the area selected.

In MIT's breakdown of expenses, food, medical, housing, transportation and child care are listed by family size and the required monthly and annual income to meet the expenses is also calculated.

These figures can be compared with the average hourly wages for 22 occupations. The calculator was designed as a way for communities to discern fair wages that compensate people according to the practical living conditions of the area.