About EconTools
EconTools provides free, easy-to-use economic calculators that help you make informed financial decisions. Our mission is to make complex economic data accessible to everyone, especially those navigating financial decisions in a new country. We believe that understanding inflation, cost of living, and real income should not require an economics degree.
Who We Built This For
Our tools are designed with specific audiences in mind:
- International Students: Making decisions about where to study in the US, understanding how far your budget will stretch in different cities, and planning for living expenses while pursuing your education.
- Immigrants: Comparing job offers across different cities, understanding salary adjustments for cost of living, and tracking whether your income is keeping pace with inflation over the years.
- Anyone Curious: Whether you're a lifelong US resident or just interested in economics, our tools help you understand how inflation affects your purchasing power and how living costs vary across the country.
Our Data Source
All calculations on EconTools are powered by official data from FRED (Federal Reserve Economic Data), maintained by the Federal Reserve Bank of St. Louis. FRED is the most comprehensive and trusted source for US economic statistics, providing access to hundreds of thousands of data series including:
- Consumer Price Index (CPI) for inflation calculations
- Regional price parities for cost of living comparisons
- Historical economic data spanning decades
Our data updates automatically to ensure you always have access to the most current information available.
Our Tools
EconTools offers three specialized calculators:
- Purchasing Power Calculator: See how inflation has changed the value of money over time. Compare what a dollar could buy in the past versus today.
- Cost of Living Comparison: Compare living expenses between US metropolitan areas. Find out how much you need to earn in a new city to maintain your current lifestyle.
- Real Income Calculator: Track whether your salary has kept pace with inflation. Calculate your true purchasing power growth over the years.
Accuracy & Limitations
While we strive to provide accurate and useful calculations, please be aware of the following limitations:
- CPI Limitations: The Consumer Price Index measures average price changes for a typical basket of goods. Your personal inflation rate may differ based on your spending habits, location, and lifestyle.
- Regional Data: Cost of living comparisons are based on metropolitan statistical areas (MSAs). Actual costs can vary significantly within a metro area depending on specific neighborhoods and housing choices.
- Data Lag: Economic data is typically released with a delay. CPI data, for example, is usually published about two weeks after the reference month.
- Not Financial Advice: The information provided by EconTools is for educational and informational purposes only. It should not be considered financial, investment, or professional advice. Always consult with qualified professionals for important financial decisions.
Contact
Have questions, suggestions, or feedback? We would love to hear from you.
Email: contact@econtools.org