Dec
19
2025
Two pre-med students in scrubs examine a human heart model in class. They are smiling and appear to be engaged in learning.

What Is the Best Pre-Med Major?

By | Going to College, Student Loans, student_loan | Comments Off on What Is the Best Pre-Med Major?

You may think biology or chemistry is the best college major if you want to attend medical school, but that’s not necessarily true. Getting into medical school is highly competitive, but you can typically choose any undergraduate major, as long as you meet medical school prerequisites.

The best pre-med major is whichever one aligns with your interests, goals, and aptitudes. It should also be one that won’t stand in the way of earning good grades, as a high GPA will improve your chances of getting accepted to medical school.

Here’s a closer look at the best majors for pre-med students so you can pick the field of study that’s the best fit for you.

Key Points

•  There is no specific best pre-med major; selection should align with a student’s personal interests and aptitudes.

•  Biology and chemistry are frequent choices, though not mandatory for medical school applications.

•  Non-science majors may be able to distinguish themselves from other applicants by offering unique perspectives and skills.

•  Majors in math and humanities have notable success rates in medical school admissions.

•  Academic performance, including GPA and MCAT scores, is essential for a strong medical school application.

What Is the Best Pre-Med Major?

The term pre-med indicates that you plan to apply to medical school after you earn your bachelor’s degree, but it doesn’t require a specific major. Instead, it means taking the necessary medical school prerequisite courses, such as biology and chemistry. Some points to consider:

•  As long as you take the prereq courses, you can major in any field of study, from biology to political science to English. Of course, choosing a major in the sciences could make it easier to fulfill your prerequisite course load. Plus, science courses may equip you with the concepts, vocabulary, and knowledge that could help you do well on the MCAT, the medical school admissions test, and in medical school in the future.

•  If, however, you know you’ll be devoting the rest of your life to the medical field, you may prefer to explore other interests in college, such as the humanities or math. Having a degree in a non-sciences field could also potentially help you stand out among the pool of applicants to medical school, especially if it equips you with a unique perspective or experiences.

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Best Pre-Med Major Based on Matriculation Rate

When considering the best majors for medical school, one statistic you can look at is matriculation rate. This lets you know, of incoming students with various majors, how many enrolled as a student. Here’s how the data breaks down by undergraduate major for 2024-2025, according to the Association of American Medical Colleges (AAMC).

Major Total Applicants Total Matriculants Matriculation Rate
Biological Sciences 30,202 13,420 44.4%
Humanities 1,483 785 52.9%
Math and Statistics 321 170 53.5%
Other 8,726 3,616 41.4%
Physical Sciences 4,088 2,121 51.8%
Social Sciences 4,736 2,040 43%
Specialized Health Sciences 2,390 1,002 41.9%

As you can see, math and humanities majors have the highest matriculation rates into medical school, while “other” and specialized health sciences majors have the lowest. This data doesn’t necessarily mean that these are the best pre-med majors, though.

For one thing, there are a lot fewer humanities and math majors applying to medical school in the first place, which could suggest that those who do apply are highly motivated to study for the MCAT and accept admission.

By contrast, health sciences students have various fields open to them and may choose to go to nursing school or another alternative program rather than enrolling in medical school. The cost of medical school and the length and rigor of the program can mean it’s not for everyone.

For these reasons, you may find that the best major for med school is the one that you find most motivating and satisfying.

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Best Pre-Med Major Based on Graduation Rate

Although the AAMC doesn’t share data on graduation rates by pre-med majors, it does reveal that the four-year graduation rate among all medical school students ranges from 80% to 84.1%. Six years after matriculating into medical school, the average graduation rate is 96.1% for non-dual degree MD students.

It’s worth considering how your choice of a major as a pre-med student will impact your chances of graduating on time. The medical school curriculum is science-based and will require you to understand scientific terms and use them in a sophisticated way in papers, projects, and exams.

If you choose a non-sciences undergraduate major, make sure to get up to speed on scientific concepts and terminology through your prerequisite courses, preparation for the MCAT, and other outside studies and experiences. While some sciences could seem like the best major for pre-med, they aren’t the only possibility.

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Best Pre-Med Major Based on GPA and MCAT

Your GPA and MCAT play a major role in your chances of admission to medical school. Choosing a concentration where you can get good grades, may be a top priority when considering good majors for applying to a graduate school pre-med program.

According to AAMC data for academic year 2025-2026, math and statistics majors have the highest average GPA at 3.71. They also score highly on the MCAT, with an average total score of 511.6 (total MCAT scores range from 472 to 528).

Humanities and biological sciences majors follow close behind, with an average GPA of 3.68 and 3.67 respectively. Humanities majors beat out biological sciences majors in terms of MCAT scores, with an average score of 508.8 as compared to 506.3.

As with the other data points in this guide, remember that correlation does not equal causation. In other words, a math or humanities major doesn’t necessarily prepare you to score higher on the MCAT.

Since there are a lot fewer math and humanities applicants to medical school, this group may be more self-selecting and represent some of the most academically strong students. At the same time, this data should reassure you that choosing a non-sciences major won’t necessarily be a roadblock on your journey to medical school.

Major Total MCAT Score GPA
Biological Sciences 506.3 3.67
Humanities 508.8 3.68
Math and Statistics 511.6 3.71
Other 505.3 3.67
Physical Sciences 509.6 3.70
Social Sciences 505.8 3.62
Specialized Health Sciences 504.0 3.66

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Best Pre-Med Major Based on Number of Applicants

In the 2024 to 2025 school year, 51,946 students applied to medical school, according to the AAMC. Here’s how many of those students majored in the biological sciences, humanities, social sciences, and other majors.

Major Total Applicants Percentage of Total Applicants
Biological Sciences 30,202 58.1%
Humanities 1,483 2.8%
Math and Statistics 321 0.61%
Other 8,726 16.7%
Physical Sciences 4,008 7.7%
Social Sciences 4,736 9.1%
Specialized Health Sciences 2,390 4.6%

As you can see, more than half of applicants to medical school majored in the biological sciences. Majoring in biology can help you meet your prerequisite course load, as well as prepare you for the types of classes you’ll be taking in medical school.

However, majoring in biology isn’t required, and choosing an alternative major could help you stand out among applicants. When choosing a major, whether you’re aiming for a Bachelor of Arts (B.A.). or a Bachelor of Science (B.S.), consider what will best prepare you to meet your future goals, and commit yourself to earning a strong GPA and MCAT score.

Recommended: Private Student Loan Guide

The Takeaway

There is no one best major for med school. While the majority of medical school applicants (58.1%) major in the biological sciences, that’s not required to get into medical school. While you may have to take some science class prerequisites as an undergraduate, your choice of major is entirely up to you.

As the data shows, choosing a non-science major isn’t necessarily an obstacle, as humanities and math majors had some of the highest GPAs and MCAT scores among all medical school applicants.

When choosing your college major, consider your personal interests and aptitudes, and work closely with your advisor to make sure you’re fulfilling all your major and pre-med requirements.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.


With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

What pre-med major has the highest matriculation rate?

The pre-med major that has the highest matriculation rate is math and statistics, with a rate of 53.5%, followed by humanities, with a rate of 52.9%, and physical sciences, with a rate of 51.8%, according to data from the Association of American Medical Colleges (AAMC) for the 2024-2025 academic year.

What major prepares you best for the MCATs?

While there is no “best” major for the MCATs, math and statistics majors have the highest average MCAT scores (511.6) followed by physical sciences (509.6), according to AAMC data for the 2025-2026 academic year. However, a major such as biology can provide a strong foundation for and an understanding of the material tested on the exam.

Do med schools like unique majors?

While majors such as biology and chemistry are common pre-med majors, a unique major may help a candidate stand out among applicants. Unique pre-med majors might include English, psychology, sociology, or philosophy, which could help a pre-med candidate develop skills like critical thinking, communication, and cultural understanding.

Photo credit: iStock/SDI Productions

SoFi Student Loan Refinance
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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Dec
19
2025
A woman in an apricot-colored sweater sits in a softly lit room holding a tablet computer and smiling down at a piece of paper.

How Much Will a $350,000 Mortgage Cost You?

By | Family Finances, Home Ownership, mortgage | Comments Off on How Much Will a $350,000 Mortgage Cost You?

Over the life of a $350,000 mortgage with a 6.00% interest rate, borrowers could expect to pay from $155,682 to $347,515 in total interest, depending on whether they opt for a 15-year or 30-year loan term. But the actual cost of a mortgage depends on several factors, including the interest rate, and whether you have to pay private mortgage insurance.

Besides interest, homebuyers need to account for a down payment, closing costs, and the long-term costs of taxes and insurance policies that are included in a $350,000 mortgage payment.

Key Points

•   The total cost of a $350,000 mortgage can range from $2,000 to over $3,500 monthly, depending on the loan term and interest rate; the payment includes principal and interest, and possibly property taxes, mortgage insurance, and homeowners insurance.

•   A longer 30-year term results in a lower monthly payment but more interest paid, while a shorter 15-year term results in a higher monthly payment but less than half the total interest paid.

•   Homebuyers who make a down payment less than 20% usually have to pay for private mortgage insurance as part of their loan payment.

•   Borrowers must account for upfront costs, including a down payment (typically 3% to 20%) and closing costs (2% to 5% of the loan principal).

•   To afford a $350,000 mortgage with a $2,328 monthly payment, the 28/36 rule suggests a minimum gross annual income of about $96,600.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

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Cost of a $350,000 Mortgage

When you finance a home purchase, you have to pay back more than the borrowed amount, known as the loan principal. The total cost of taking out a $350,000 mortgage is about $757,000 with a 30-year term at a 6.00% interest rate. This comes out to around $405,900 worth of interest, assuming there aren’t any late monthly mortgage payments or pre-payments.

When you buy a home, there are usually some upfront costs you’ll have to pay, too. Mortgages often require a down payment, calculated as a percentage of home purchase price, that’s paid out of pocket to secure financing from a lender. The required amount varies by loan type and lender, but average down payments range from 3% to 20%.

Closing costs, including home inspections, appraisals, and attorney fees, represent another upfront cost for real estate transactions. They typically sum up to 2% to 5% of the loan principal, or $10,500 to $21,000 on a $350,000 mortgage.

The total down payment on $350,000 mortgages also impacts the total cost of taking out a home loan. Unless buyers put 20% or more down on a home purchase, they’ll have to pay private mortgage insurance (PMI) with their monthly mortgage payment. The annual cost of PMI is generally between 0.5% – 1.5% of the loan principal. Borrowers can get out of paying PMI with a mortgage refinance or when they reach 20% equity in their home. If this is your first time in the housing market, consider reading up on tips to qualify for a mortgage.

💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.

Monthly Payments for a $350,000 Mortgage

The monthly payment on a $350K mortgage won’t be the same amount for every homeowner. You’ll need to factor in your down payment, interest rate, and loan term to estimate your $350,000 mortgage monthly payment.

With a 30-year loan term and 6.00% interest rate, borrowers can expect to pay around $2,100 a month. Whereas a 15-year term at the same rate would have a monthly payment of approximately $2,956. However, these estimates only account for the loan principal and interest. Monthly mortgage payments also include taxes and insurances, but these costs can differ considerably by location and based on a home’s assessed value.

There are also different types of mortgages to consider. Whether you opt for a fixed vs. adjustable-rate mortgage, for instance, will affect your monthly payment.

To get a clearer idea of what your monthly payment might be with different down payments and loan terms, try using a mortgage calculator.

Recommended: Best Affordable Places to Live in the U.S.

Where to Get a $350,000 Mortgage

Homebuyers have many options in terms of lenders, including banks, credit unions, mortgage brokers, and online lenders.

The homebuying process can be stressful, so it may be tempting to go with the first mortgage offer you receive. However, shopping around and getting loan estimates from multiple lenders lets you choose the one that’s the most competitive and cost-effective.

Even a fraction of a percentage point difference on an interest rate can add up to thousands in savings over the life of a mortgage. Besides the interest rate, assess the fees, terms, and closing costs when comparing mortgage offers.


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$9,500‡ cash back when you close.

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What to Consider Before Applying for a $350,000 Mortgage

When taking out a mortgage, it’s important to consider the total cost of the loan. You’ll need cash on hand for a down payment and closing costs, plus sufficient income and funds to cover the monthly payment and other homeownership costs.

Before applying for a $350,000 mortgage, crunching the numbers in a housing affordability calculator can give a better understanding of how these costs will work with your finances.

It’s also helpful to see how $350,000 mortgage monthly payments are applied to the loan interest and principal over the life of the loan. The majority of the monthly mortgage payment goes toward interest rather than paying off the loan principal, as demonstrated by the amortization schedules below.

Here’s the mortgage amortization schedule for a 30-year $350,000 mortgage with a 7.00% interest rate — which would amount to $488,233 in interest. For comparison, we’ve also included the mortgage amortization schedule for a 15-year $350,000 mortgage with a 7.00% interest rate. A $350,000 mortgage payment, 15 years’ out, would add up to $216,229 in interest. When weighing a 30-year vs 15-year loan term, the shorter loan term carries a higher monthly payment but less than half the total interest over the life of the loan.

Amortization Schedule, 30-year Mortgage at 7.00%

Year Beginning Balance Total Interest Paid Total Principal Paid Remaining Balance
1 $350,000 $24,386 $3,555 $346,425
2 $346,425 $24,129 $3,812 $342,613
3 $342,613 $23,853 $4,088 $338,525
4 $338,525 $23,558 $4,383 $334,142
5 $334,142 $23,241 $4,700 $329,442
6 $329,442 $22,901 $5,040 $324,402
7 $324,402 $22,537 $5,404 $318,998
8 $318,998 $22,146 $5,795 $313,203
9 $313,203 $21,717 $6,214 $306,989
10 $306,989 $21,278 $6,663 $300,326
11 $300,326 $20,796 $7,145 $293,182
12 $293,182 $20,280 $7,661 $285,520
13 $285,520 $19,726 $8,215 $277,306
14 $277,306 $19,132 $8,809 $268,497
15 $268,497 $18,496 $9,446 $259,051
16 $259,051 $17,813 $10,128 $248,923
17 $248,923 $17,081 $10,861 $238,062
18 $238,062 $16,295 $11,646 $226,417
19 $226,417 $15,454 $12,488 $213,929
20 $213,929 $14,551 $13,390 $200,539
21 $200,539 $13,583 $14,358 $186,181
22 $186,181 $12,545 $15,396 $170,784
23 $170,784 $11,432 $16,509 $154,275
24 $154,275 $10,238 $17,703 $136,573
25 $136,573 $8,959 $18,982 $117,590
26 $117,590 $7,586 $20,355 $97,236
27 $97,236 $6,115 $21,826 $75,409
28 $75,409 $4,537 $23,404 $52,006
29 $52,006 $2,845 $25,096 $26,910
30 $26,910 $1,031 $26,910 $0

Amortization Schedule, 15-year Mortgage at 7.00%

Year Beginning Balance Total Interest Paid Total Principal Paid Remaining Balance
1 $350,000 $24,065 $13,684 $336,296
2 $336,296 $23,076 $14,673 $321,624
3 $321,624 $22,015 $15,733 $305,890
4 $305,890 $20,878 $16,871 $289,020
5 $289,020 $19,658 $18,090 $270,929
6 $270,929 $18,351 $19,398 $251,531
7 $251,531 $16,948 $20,800 $230,731
8 $230,731 $15,445 $22,304 $208,427
9 $208,427 $13,832 $23,916 $184,510
10 $184,510 $12,103 $25,645 $158,865
11 $158,865 $10,249 $27,499 $131,366
12 $131,366 $8,261 $29,487 $101,879
13 $101,879 $6,130 $31,619 $70,260
14 $70,260 $3,844 $33,904 $36,355
15 $36,355 $1,393 $36,355 $0

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How to Get a $350,000 Mortgage

To qualify for a $350,000 mortgage, borrowers will need to meet the income, credit, and down payment requirements. It’s also important to have an adequate budget for long-term housing costs and other financial goals and obligations like savings and debt.

Using the 28/36 rule, a monthly mortgage payment shouldn’t be more than 28% of your monthly gross income and 36% of your total debt to be considered affordable. With a $2,328 monthly mortgage payment, you’d need a minimum gross monthly income of at least $8,300, or annual income of $96,600, to follow the 28% rule. Similarly, your total debt could not exceed $660 to keep housing and debt costs from surpassing 36%.

Home mortgage loans, with the exception of certain government-backed loans, require a minimum credit score of 620 to qualify. However, a higher credit score can help secure more competitive rates. If you qualify as a first-time homebuyer, you could get a FHA loan with a credit score of 500 or higher, though borrowers with a credit score below 580 will have to make a 10% down payment.

As mentioned above, it’s a good idea to compare lenders and loan types to find the most favorable rate and loan terms. From there, getting preapproved for a home loan is a logical next step to determine the loan amount and interest rate you qualify for. It also puts you in a better position to demonstrate you’re a serious buyer when making an offer on a property.

After putting in an offer, completing the mortgage application requires many of the same forms used for preapproval, plus an earnest money deposit.

💡 Quick Tip: Generally, the lower your debt-to-income ratio, the better loan terms you’ll be offered. One way to improve your ratio is to increase your income (hello, side hustle!). Another way is to consolidate your debt and lower your monthly debt payments.

The Takeaway

Buying a home is the largest purchase many Americans make in their lifetime. How much you’ll end up paying for a $350,000 mortgage depends on the interest rate and loan term. On a $350,000 mortgage, the monthly payment can range from around $2,000 to $3,500 based on these factors.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

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FAQ

How much is a $350K mortgage a month?

The cost of a $350,000 monthly mortgage payment is influenced by the loan term and interest rate. On a $350K mortgage with 7.00% interest, the monthly payment ranges from $2,328 to $3,146 depending on the loan term. The same loan with a 6.00% interest rate would cost around $2,100 to $3,000 per month.

How much income is required for a $350,000 mortgage?

Income requirements can vary by lender. But using the 28/36 rule, a borrower who isn’t burdened by lots of other debts should make $99,600 a year to afford the monthly payment on a $350,000 mortgage.

How much is a down payment on a $350,000 mortgage?

The down payment amount depends on the loan type and lender terms. FHA loans require down payments of 3.50% or 10.00%, while buyers could qualify for a conventional loan with as little as 3.00% down.

Can I afford a $350K house with a $70K salary?

It may be possible to afford a $350,000 house with a $70,000 salary, but only if you are able to make a sizable down payment to lessen the amount of money you need to borrow. Having a good credit score and minimal debt would also better your chances.

Photo credit: iStock/sturti

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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.



*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Up to $9,500 cash back: HomeStory Rewards is offered by HomeStory Real Estate Services, a licensed real estate broker. HomeStory Real Estate Services is not affiliated with SoFi Bank, N.A. (SoFi). SoFi is not responsible for the program provided by HomeStory Real Estate Services. Obtaining a mortgage from SoFi is optional and not required to participate in the program offered by HomeStory Real Estate Services. The borrower may arrange for financing with any lender. Rebate amount based on home sale price, see table for details.

Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.

HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.

SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.

If your property is currently listed with a REALTOR, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS.

Reward is valid for 18 months from date of enrollment. After 18 months, you must re-enroll to be eligible for a reward.

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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19
2025
A dense group of miniature wooden houses, painted white and teal blue, are spread across a surface, illustrating topics like foreclosure rates.

Foreclosure Rates for All 50 States

By | Home Ownership, mortgage | Comments Off on Foreclosure Rates for All 50 States

In the ever-evolving landscape of real estate, the U.S. foreclosure market often unveils key trends that will shape the future of homeownership. According to property data provider ATTOM, the number of housing units with foreclosure filings in November was 35,651, down 3% from the prior month and up 21% from a year ago. Rob Barber, CEO of ATTOM, notes that “November marks the ninth straight month of year-over-year increases in foreclosure activity, underscoring a trend that has steadily taken shape throughout 2025.”

Nationwide, one in every 3,992 housing units had a foreclosure filing in November 2025. Foreclosure starts increased nationwide by 17% from last year. States with the greatest number of foreclosure starts in November 2025 included Florida, Texas, California, New York, and Illinois. Borrowers should stay up to date on their mortgage payments and work closely with their lenders to explore options for assistance if needed.

Read on for the foreclosure rates in November 2025 – plus the top three counties with the worst foreclosure rates in each state.

50 State Foreclosure Rates

As previously noted, foreclosure rates saw a decrease from the previous month and an increase compared to the previous year. Read on for the November 2025 foreclosure rates for all 50 states — beginning with the state that had the lowest rate of foreclosure filings per housing unit.

50. South Dakota

The Mount Rushmore State nabbed the 50th spot once more for its foreclosure rate in November. Having 398,903 total housing units, the fifth-least populous state had a foreclosure rate of one in every 44,323 households with nine foreclosures. The counties with the most foreclosures per housing unit were (from highest to lowest): Hughes, Brown and Minnehaha.

49. West Virginia

Ranked 39th in population, the Mountain State claimed the 49th spot for the month of November. It has a total of 859,653 housing units, of which 26 went into foreclosure. This means that the foreclosure rate was one in every 33,064 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Jefferson, Marion, and Roane.

48. Vermont

In 49th place for population, the Green Mountain State ranked 48th for its foreclosure rate in November. Of the state’s 337,072 housing units, 12 homes went into foreclosure at a rate of one in every 28,089 households. The three counties in the state with the most foreclosures were: Orleans, Washington, and Rutland.

47. Kansas

The Sunflower State ranked 47th for highest foreclosure rate in November. With 1,285,221 homes and a total of 95 housing units going into foreclosure, the 35th most populous state’s foreclosure rate was one in every 13,529 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Morton, Rush, and Stafford.

46. Montana

Listed as 44th in population, the Treasure State rated 46th for its foreclosure rate in November. With 43 foreclosures out of 522,939 housing units, Montana’s foreclosure rate was one in every 12,161 homes. The counties with the most foreclosures per housing unit were: Golden Valley, Fallon, and Big Horn.

45. Mississippi

Ranked 34th in population, the Magnolia State experienced 113 foreclosures out of 1,332,811 total housing units. This puts the foreclosure rate at one in every 11,795 homes and into the 45th spot in November. The counties with the most foreclosures per housing unit were (from highest to lowest): Humphreys, Stone, and Chickasaw.

44. North Dakota

The Peace Garden State’s foreclosure rate was one in every 11,360 homes. This puts the fourth-least populous state — with 374,866 housing units and 33 foreclosures — into 44th place. The counties with the most foreclosures per housing unit were (from highest to lowest): Foster, Stock and McHenry.

43. Hawaii

The Paradise of the Pacific, and the 40th most populous state, came in 43rd for highest foreclosure rate. Of its 564,905 homes, 57 went into foreclosure, making for a foreclosure rate of one in every 9,911 households. The three counties with the most foreclosures were (from highest to lowest): Hawaii, Honolulu, and Muai.

42. Wisconsin

With 301 foreclosures out of 2,750,750 total housing units, America’s Dairyland and the 20th most populous state secured the 42nd spot with a foreclosure rate of one in every 9,139 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Iron, Racine, and Ashland.

41. Nebraska

Ranking 37th in population, the Cornhusker State placed 41st in November with a foreclosure rate of one in every 8,821 homes. With a total of 855,631 housing units, the state had 97 foreclosure filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Clay, Jefferson, and Scotts Bluff.

40. Massachusetts

The 15th most populous state ranked 40th for highest foreclosure rate in November. Of the Bay State’s 3,014,657 housing units, 413 went into foreclosure, making for a foreclosure rate of one in every 7,299 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Franklin, Berkshire, and Plymouth.

Recommended: Tips on Buying a Foreclosed Home

39. New Hampshire

The Granite State, and the 41st most populous state in the U.S., ranked 39th for highest foreclosure rate. New Hampshire saw 94 of its 644,253 homes go into foreclosure, making for a foreclosure rate of one in every 6,854 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Cheshire, Sullivan, and Coos.

38. Missouri

Coming in at 19th in population, the Show-Me State took the 38th spot for highest foreclosure rate in November. Of its 2,809,501 homes, 416 went into foreclosure, making for a foreclosure rate of one in every 6,754 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Chariton, Clinton, and Audrain.

37. Rhode Island

The eighth-least populous state placed 37th for highest foreclosure rate in November. A total of 78 homes went into foreclosure out of 484,615 total housing units, making the foreclosure rate for the Ocean State one in every 6,213 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Providence, Kent, and Washington.

36. Tennessee

Ranked 16th in population, the Volunteer State endured 528 foreclosures out of its 3,095,472 housing units. This puts the foreclosure rate at one in every 5,863 households and in 36th place for the month of November. The counties with the most foreclosures per housing unit were (from highest to lowest): Hickman, Hancock, and Trousdale.

35. Oregon

The 27th most populous state ranked 35th for highest foreclosure rate in November. Of the Pacific Wonderland’s 1,838,631 homes, 316 went into foreclosure, making for a foreclosure rate of one in every 5,818 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Wheeler, Crook, and Columbia.

34. Washington

Sorted as 13th in population, the Evergreen State ranked 34th for its foreclosure rate in November. Of its 3,262,667 housing units, 569 went into foreclosure, making the state’s foreclosure rate one in every 5,734 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Wahkiakum, Clallam, and Cowlitz.

Recommended: What Is a Short Sale?

33. Maine

Ranked 42nd in population, the Pine Tree State placed 33rd for highest foreclosure rate in November. With a total of 746,552 housing units, Maine saw 132 foreclosures for a foreclosure rate of one in every 5,656 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Somerset, Oxford, and Penobscot.

32. New Mexico

The 36th most populous state claimed the 32nd spot for highest foreclosure rate in November. Of the Land of Enchantment’s 949,524 homes, 171 went into foreclosure, making for a foreclosure rate of one in every 5,553 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Roosevelt, Valencia, and Chaves.

31. Colorado

The 21st most populous state ranked 31st for highest foreclosure rate in November. Of the Centennial State’s 2,545,124 housing units, 477 went into foreclosure, making for a foreclosure rate of one in every 5,336 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Logan, Jackson, and Pueblo.

30. Virginia

With 686 homes going into foreclosure, the 12th most populous state ranked 30th for highest foreclosure rate in November. Having 3,654,784 total housing units, the Old Dominion saw a foreclosure rate of one in every 5,328 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Petersburg City, Dinwiddie, and Martinsville City.

29. Connecticut

With 291 of its 1,536,049 homes going into foreclosure, the Constitution State had the 29th-highest foreclosure rate at one in every 5,279 households. In this 29th most populous state, the counties that had the most foreclosures per housing unit were (from highest to lowest): Northeastern Connecticut, South Central Connecticut, and Northwest Hills.

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28. Kentucky

With a total of 2,010,655 housing units, the Bluegrass State saw 382 homes go into foreclosure, thus landing in 28th place in November. This puts the foreclosure rate for the 29th most populous state at one in every 5,263 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Boyd, Simpson, and Breckinridge.

27. Michigan

Ranked 10th in population, the Wolverine State secured the 27th spot with a foreclosure rate of one in every 5,116 homes. With a total of 4,599,683 housing units, the state had 899 foreclosure filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Saint Clair, Tuscola, and Shiawassee.

26. Minnesota

Ranked 22nd for most populous state, the Land of 10,000 Lakes obtained the 26th spot for highest foreclosure rate in November. It has 2,519,538 housing units, of which 511 went into foreclosure, making the state’s foreclosure rate one in every 4,931 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Pipestone, Stearns, and Pine.

25. New York

With 1,788 out of a total 8,539,536 housing units going into foreclosure, the Empire State claimed the 25th spot in November. The fourth-most populous state’s foreclosure rate was one in every 4,776 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Rockland, Nassau, and Putnam.

24. Alabama

Listed as 24th in population, the Yellowhammer State came in 24th for highest foreclosure rate in November. Of its 2,316,192 homes, 498 went into foreclosure, making for a foreclosure rate of one in every 4,651 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Perry, Hale, and Franklin.

23. Wyoming

The country’s least populous state claimed the 23rd spot for highest foreclosure rate in November. With 275,131 housing units, of which 60 went into foreclosure, the Equality State’s foreclosure rate was one in every 4,586 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Campbell, Converse, and Fremont.

22. Arkansas

Listed as the 33rd most populous state, the Land of Opportunity ranked 22nd for highest foreclosure rate in November. The state contains 1,382,664 housing units, of which 314 went into foreclosure, making its latest foreclosure rate one in every 4,403 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Sharp, Crittenden, and Desha.

Recommended: Are You Ready to Buy a House? — Take The Quiz

21. Georgia

Ranked eighth in population, the Peach State took the 21st spot for highest foreclosure rate in November. Of its 4,483,873 homes, 1,044 were foreclosed on. This puts the state’s foreclosure rate at one in every 4,295 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Crawford, McIntosh, and Lanier.

20. Alaska

The Last Frontier saw 76 foreclosures in November, making the foreclosure rate one in every 4,196 homes. This caused the third-least populous state, with a total of 318,927 housing units, to claim the 20th spot. The boroughs with the most foreclosures per housing unit were (from highest to lowest): Sitka, Aleutians West, and Southeast Fairbanks.

19. California

The country’s most populous state ranked 19th for highest foreclosure rate in November. Of its impressive 14,532,683 housing units, 3,534 went into foreclosure, making the Golden State’s foreclosure rate one in every 4,112 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Lake, Madera, and Shasta.

18. North Carolina

The ninth-most populous state claimed 18th place for highest foreclosure rate. Out of 4,815,195 homes, 1,181 went into foreclosure. This puts the Tar Heel State’s foreclosure rate at one in every 4,077 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Gates, Hertford, and Cleveland.

17. Arizona

Sorted as 14th in population, the Grand Canyon State withstood 796 foreclosures out of its total 3,142,443 housing units. This puts the foreclosure rate at one in every 3,948 homes and into the 17th spot in November. The counties with the most foreclosures per housing unit were (from highest to lowest): Graham, Pinal, and Cochise.

16. Louisiana

Sorted as 25th in population, the Pelican State placed 16th for highest foreclosure rate in November. Louisiana had a foreclosure rate of one in every 3,885 households, with 539 out of 2,094,002 homes going into foreclosure. The parishes with the most foreclosures per housing unit were (from highest to lowest): Tangipahoa, Livingston, and Red River.

15. Oklahoma

The Sooners State landed the 15th spot in November. With housing units totaling 1,763,036, the 28th most populous state saw 466 homes go into foreclosure at a rate of one in every 3,783 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Logan, Ottawa, and Jackson.

14. Texas

The Lone Star State withstood 3,158 foreclosures in November. With a foreclosure rate of one in every 3,765 households, this puts the second-most populous state in the U.S., with a whopping 11,890,808 housing units, into 14th place. The counties with the most foreclosures per housing unit were (from highest to lowest): Liberty, Archer, and Terry.

13. Idaho

Ranked 38th in population, the Gem State received the 13th spot due to its 209 housing units that went into foreclosure in November. With 776,683 total housing units, the state’s foreclosure rate was one in every 3,716 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Washington, Payette, and Lincoln.

12. Iowa

The Hawkeye State had the 12th highest foreclosure rate in November. With 386 out of 1,427,175 homes going into foreclosure, the 31st most populous state’s foreclosure rate was one in every 3,697 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Adams, Wayne, and Decatur.

Recommended: Your 2025 Guide to All Things Home

11. Ohio

The Buckeye State placed 11th in November with a foreclosure rate of one in every 3,576 homes. With a sum of 5,271,573 housing units, the seventh-most populous state had a total of 1,474 filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Cuyahoga, Knox, and Jefferson.

10. Maryland

Ranked 18th for most populous state, America in Miniature took 10th place for highest foreclosure rate in November. With a total of 2,545,532 housing units, of which 760 went into foreclosure, the state’s foreclosure rate was one in every 3,349 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Baltimore City, Charles, and Kent.

9. Utah

The Beehive State placed ninth for highest foreclosure rate in November. Of its 1,193,082 housing units, 369 homes went into foreclosure, making the 17th most populous state’s foreclosure rate one in every 3,233 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Carbon, Piute, and Tooele.

8. Pennsylvania

The Keystone State had the eighth highest foreclosure rate. The fifth-most populous state saw 1,827 homes out of 5,779,663 total housing units go into foreclosure, making the state’s foreclosure rate one in every 3,163 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Philadelphia, Potter, and Delaware.

7. Illinois

The Land of Lincoln had the seventh-highest foreclosure rate in all 50 states in November. Of its 5,443,501 homes, 1,798 went into foreclosure, making the sixth-most populous state’s foreclosure rate one in every 3,028 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Marshall, Kankakee, and Will.

6. Indiana

The 17th largest state by population, the Crossroads of America landed the sixth spot in November with a foreclosure rate of one in every 2,802 homes. Of its 2,953,344 housing units, 1,054 went into foreclosure. The counties with the most foreclosures per housing unit were (from highest to lowest): Martin, Pike, and Perry.

5. Florida

The third-most populous state in the country has a total of 10,082,356 housing units, of which 3,903 went into foreclosure. This puts the Sunshine State’s foreclosure rate at one in every 2,565 homes and into fifth place in November. The counties with the most foreclosures per housing unit were (from highest to lowest): Hendry, Hamilton, and Wakulla.

4. New Jersey

With a foreclosure rate of one in every 2,511 homes, the Garden State ranked fourth for highest foreclosure rate in November. The 11th most populous state contains 3,775,842 housing units, of which 1,504 went into foreclosure. The counties with the most foreclosures per housing unit were (from highest to lowest): Salem, Cumberland, and Sussex.

3. Nevada

Ranked 32nd in population, the Silver State took the third spot for highest foreclosure rate in November. With one in every 2,373 homes going into foreclosure, and a total of 1,307,338 housing units, the state had 551 foreclosure filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Lyon, Clark, and Lincoln.

2. South Carolina

The 23rd most populous state had the second-highest foreclosure rate in November with one in every 1,973 homes going into foreclosure. Of the Palmetto State’s 2,401,638 housing units, 1,217 were foreclosed on in November. The counties with the most foreclosures per housing unit were (from highest to lowest): Dorchester, Spartanburg, and Richland.

1. Delaware

The sixth-least populous state in the country, the Small Wonder nabbed first place in November. With one in every 1,924 homes going into foreclosure and a total of 457,958 housing units, the state saw 238 foreclosures filed. Having only three counties in the state, the most foreclosures per housing unit were (from highest to lowest): New Castle, Kent, and Sussex.

The Takeaway

Of all 50 states, Florida had the most foreclosure filings (3,930), and South Dakota had the least (9). As for the states with the highest foreclosure rates, Nevada, South Carolina, and Delaware took the top three spots.

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19
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A colorful photo of the looping tracks of a roller coaster represent the volatile nature of risk.

Risk Tolerance Quiz: How Much Risk Are You Willing to Take?

By | Growing Wealth, Investing | Comments Off on Risk Tolerance Quiz: How Much Risk Are You Willing to Take?

In finance, “risk” refers to the risk of losing money. Determining how much risk you feel comfortable with can help you decide how best to invest your money. The stock market can be volatile, and the assets and allocations you choose should be those that make you feel comfortable personally and financially.

Your risk tolerance may change, depending on the goal you’re investing for and your time horizon, as well as your personal circumstances. In some cases, you may feel more comfortable taking on a little more risk exposure when you have a longer time period to reach your goal.

Risk is a highly personal factor, though, and it takes careful thought to know where you stand. Take our Risk Tolerance quiz to gain insight into your own tolerance for risk.

Key Points

•   Risk tolerance refers to an investor’s comfort level with the possibility of losing money.

•   In general, higher-risk investments may provide greater returns but are less predictable than lower-risk investments, which typically offer lower returns.

•   Investment goals, time-frame, financial circumstances, and personal temperament all help determine an individual’s risk tolerance.

•   Investment styles are divided into conservative, moderate, and aggressive, which generally correspond to portfolios favoring lower-risk funds, a balance of assets, or high-potential-return assets, respectively.

•   The article introduces a risk tolerance quiz to help evaluate an individual’s personal risk level.


Risk Tolerance Quiz

Take this 9 question quiz to see what your risk tolerance is.

⏲️ Takes 1 minute 30 seconds

What Investment Risk Tolerance Is

When it comes to investing, understanding risk tolerance involves the following three factors:

•  Your risk capacity: This is your ability to handle risk financially — the amount of money you can afford to lose without impacting your financial security. How close you are to retirement and the financial obligations you have will affect your risk capacity, whether you’re investing online or through a traditional brokerage.

•  Your needs and wants: These are your goals for your finances and your lifestyle. For instance, maybe you want to retire soon or save up for a down payment on a new house.

•  Your emotional risk IQ: This refers to your personality and how you see risk. You might be a thrillseeker who likes to live on the edge. Or perhaps you prefer a sure and steady approach.

Understanding Risk vs. Reward

As you get familiar with various aspects of risk, as well as your own risk tolerance, it helps to understand the risk-reward continuum when it comes to your investments.

Remember: Higher-risk investments are generally less predictable, but may provide higher returns. Lower-risk investments generally offer lower returns, but they’re typically more reliable and less volatile.

Recommended: Stock Market Basics

What Your Risk Tolerance Means

Once you know whether your investment style is conservative, moderate, or aggressive, you can dig a little deeper to understand what’s driving your specific risk tolerance.

•  First, of course, there are the goals you’re saving and investing for. Is it retirement? A down payment on a new house? Sending your kids to college? Where your money is going will make you more or less willing to take risks for the potential of higher returns.

•  The length of your investment time frame often relates to risk tolerance. Investors with short-term goals, or those nearing retirement, often focus on strategies that prioritize capital stability, as there is less time to recover from market volatility before that money is needed.

A longer time horizon, such as for a newbie investor in their 20s, provides decades for potential market recovery. This time frame can align with growth-focused strategies that pursue higher potential returns. Conversely, investors with a medium-term horizon may consider a balanced approach that seeks to mitigate risk while still pursuing growth.

•  Your financial circumstances, now and in the future, can also impact risk tolerance. Investors who anticipate income growth may find themselves with a higher risk tolerance. Conversely, individuals facing uncertain income, such as freelancers, or those not anticipating salary growth, typically prioritize capital preservation and a more cautious approach to investing.

Finally, there’s your temperament. If you invest in stocks, for example, are you going to be filled with anxiety every time the market dips? Or can you remain calm and focused?

Thinking about these different factors can give you some insights into your feelings about money, and the types of investments you may want to choose.

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Finding Investments That Match Your Risk Tolerance

With this new knowledge in hand, you can invest your money in a way that makes sense for you and the amount of risk you feel comfortable with. These are some scenarios you might want to think about, depending on your investment style.

•   Conservative: A conservative investor may opt for a portfolio that mainly consists of assets that tend to be stable and lower risk, such as money market funds and government bonds.

•   Moderate: An investor who takes moderate risks might choose to balance their portfolio between riskier assets like stocks and more stable investments like money market funds and bonds.

•   Aggressive: An investor who is interested in self-directed investing will likely gravitate to assets with a high potential for return, but also a higher potential for volatility and loss, such as growth stocks and alternative investments.

Whatever your risk tolerance is, it’s wise to diversify your portfolio across different asset classes including stocks, bonds, and commodities.

The Takeaway

Each investor has a risk tolerance level that depends on their individual circumstances. Using our risk tolerance quiz can help you evaluate how much risk you should take.

That said, it’s vital to know that all investments come with some degree of risk. A conservative investor will likely feel better with lower-risk investments, while an aggressive investor will typically look for assets with high growth potential, despite the higher risk they pose.

Once you have investments that suit your style and temperament, the better you may feel about your investment strategy. Just be sure to check your investments regularly to make sure they’re on target to help you to meet your financial goals.

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FAQ

What is an example of risk tolerance?

If the idea of making an investment, and watching it possibly lose and gain money, is a source of anxiety, you may have a low tolerance for risk. If portfolio ups and downs don’t bother you, perhaps because you believe you may come out ahead eventually, you may have a higher risk tolerance.

How does risk tolerance relate to investing strategy?

Once you know how much risk you want to take on, you can choose investments that match your comfort level. If you prefer as little risk of loss as possible, you may want to invest in assets that provide a steady rate of return. If you can tolerate some risk of loss, you may want to consider investments with a higher risk/reward profile.

Remember: higher risk investments may have higher returns, but there are no guarantees. Lower risk investments tend to have lower returns, but typically provide a higher degree of stability.

Can your risk tolerance change?

Yes. Your risk tolerance can change over time. And your risk tolerance may also change depending on your circumstances, or the goal you’re investing for.

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Alternative investments, including funds that invest in alternative investments, are risky and may not be suitable for all investors. Alternative investments often employ leveraging and other speculative practices that increase an investor's risk of loss to include complete loss of investment, often charge high fees, and can be highly illiquid and volatile. Alternative investments may lack diversification, involve complex tax structures and have delays in reporting important tax information. Registered and unregistered alternative investments are not subject to the same regulatory requirements as mutual funds.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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19
2025
A woman uses a laptop and calculator at a coffee table while sitting on a couch.

The Consumer Price Index (CPI): A Comprehensive Guide

By | Growing Wealth, invest, Investing, Terminology | Comments Off on The Consumer Price Index (CPI): A Comprehensive Guide

The Consumer Price Index (CPI) is a monthly measure of how the aggregate costs of consumer goods and services in the United States are changing. Economists use CPI to help them understand whether the economy is in a period of inflation or deflation, and individuals can use it to get a sense of where prices might be headed.

Key Points

•   The Consumer Price Index (CPI) measures average price changes for a basket of goods and services.

•   The CPI is a major data point that influences Federal Reserve decisions on interest rates to meet a 2% annual inflation target.

•   Rising CPI can increase interest rates, affecting mortgage costs and the housing market.

•   Higher interest rates can reduce business sales, impact stock prices, and potentially increase unemployment.

•   Despite limitations, CPI remains a relevant economic indicator, guiding policy decisions.

What Is the Consumer Price Index (CPI)?

The CPI measures the change of the weighted-average prices paid by urban consumers for select goods and services, according to the Bureau of Labor Statistics (BLS). In other words, the metric tracks the rise and fall of prices over a given period of time.

Definition and Significance

As mentioned, “CPI” is short for Consumer Price Index, and it’s an often-cited economic indicator.

The BLS produces indexes that cover two populations: CPI-U covers all urban consumers, representing more than 90% of the population. And CPI-W represents urban wage earners and clerical workers, representing approximately 30% of the population. The CPI excludes people who live in rural areas, the military, and imprisoned people.

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How the CPI Works

The CPI tracks prices for a basket of goods and services people commonly buy in eight major categories, including:

•   Food and beverage

•   Recreation

•   Apparel

•   Transportation

•   Housing

•   Medical care

•   Education and communication

•   Various services

CPI Formulas

Each month, the BLS contacts retailers, service providers, and rental spaces across the country gathering prices for about 80,000 items. It uses this data to calculate CPI using the following formula:

CPI = Cost of the Market Basket in a Given Year/Cost of the Market Basket in the Base Year.

The result is multiplied by 100 to express CPI as a percentage. The BLS uses the years 1982-1984 as its base year. It set the index level during this period at 100.

Annual CPI Calculation

Here’s an example of the annual CPI calculation, and comparing two different years to get a gist of the differences.

Imagine the cost of a hypothetical basket of goods in 1984.

Sweatshirt

 1 dozen eggs

 Movie ticket
Price in 1984 $10 $1.50 $5
Quantity 2 6 10
Total Cost $20 $9 $50

When you total the price of these goods you get $79. Using the CPI formula above you take $79/$79 x 100 = 100%. This is where the 1984 base rate of 100 comes from.

Now let’s consider the same basket of goods in 2025.

Sweatshirt

 1 dozen eggs

 Movie ticket
Price in 2025 $24 $3 $15
Quantity 2 6 10
Total Cost $48 $18 $150

When you total the prices of these goods you get $216. Now, when you plug this into the CPI formula you get $216/$79 x 100 = 273%. You can now tell that from 1984 to 2025 prices for this particular basket of goods have risen by 173%.

Diverse Categories Within CPI

The CPI tracks more than 200 categories of items, and within each category it samples hundreds of specific items at various businesses which serve to represent the thousands of items available to consumers. In addition to these categories, CPI includes government-charged user fees like water, sewage, tolls, and auto registration fees.

It also factors in taxes associated with the price of goods such as sales tax and excise tax. However, it does not include Social Security taxes or income taxes that aren’t directly related to the purchasing of goods and services.

The CPI also does not include the purchase of investments, like stocks and bonds.

The Consumer Price Index (CPI) in Practice

The CPI can be used in a variety of ways, but perhaps most prominently, in economic policy.

Usage in Economic Policy

The CPI is the most common way to measure inflation, the economic trend of rising prices over time, or deflation, the trend of falling prices. The federal government, or the Federal Reserve, more specifically, sets a target inflation rate of 2% annually, and the CPI can help the government understand whether or not its monetary policy is effective in meeting this target.

The Federal Reserve’s Utilization

The Federal Reserve may look at the CPI to gauge whether or not to raise interest rates, which may cool or heat up the economy, accordingly, by increasing the cost of borrowing. As borrowing costs go up, demand for goods or services tends to fall, lowering prices, and putting downward pressure on the CPI.

Implications for Other Government Agencies

Economists also use CPI as a measure of cost of living, the amount of money you need to cover basic expenses, such as housing, food, and health care. This is important because the government may make cost-of-living adjustments to programs such as Social Security benefits. As the cost of living rises, benefit amounts may be adjusted higher to keep up with the rising costs of goods.

Employers may also look at the cost of living to help them set competitive salaries and determine when to raise wages for employees.

CPI’s Influence on Market Sectors

The CPI can also have an influence on market sectors, like the housing markets, financial markets, and even labor markets. As noted, a lot of it is top-down — depending on how the Federal Reserve reads the CPI and decides to change interest rates, if at all.

Raising rates can temper demand in the housing market, as a mortgage can become more expensive. It can also slow down sales for all sorts of businesses, which is reflected in earnings reports and finally, in the stock market. That can then spill into the labor market, and potentially raise unemployment as companies look to cut costs.

All told, the CPI’s influence can run deep in an economy.

CPI Versus Other Economic Indicators

The CPI is only one of many economic indicators, as mentioned. Others include unemployment, and the Producer Price Index (PPI).

CPI vs Unemployment: Understanding the Relationship

As noted, there tends to be a relationship between the CPI and unemployment rate, as the Fed targets 2% inflation, and full employment. As such, it can decide to make changes to monetary policy to try and restore balance or at least get closer to its goals.

CPI vs PPI (Producer Price Index)

The Producer Price Index or PPI measures the average change over time in the selling prices received by domestic producers of goods and services. In simpler terms, this metric measures wholesale prices for the sectors of the economy that produce goods. Like the CPI, the PPI can help analysts estimate inflation, as higher prices will show up on the wholesale level first before they get passed on to consumers at the retail level.

Analyzing and Critiquing the CPI Methodology

The CPI is a useful measure in many ways, but it does have some limitations.

First, it doesn’t apply to all populations in the United States. CPI considers urban populations alone, so it is not necessarily representative of the costs for those who live outside of those areas.

Also, the CPI calculation does not take into account all of the goods and services available to consumers or new technologies not yet considered consumer staples. What’s more, the metric does not provide any contact into what’s causing prices to move up and down, such as social or environmental trends.

CPI’s Broader Impact and Usage

CPI reports are typically issued monthly by the BLS, and are available to anyone who wants to access them online. They give a broad breakdown of the previous month, and compare price changes year-over-year, and month-over-month.

Breaking Down the Monthly CPI Report

The standard CPI report has an introduction that discusses the changes over the previous month, followed by a table that outlines changes in specific price categories over the past year and several months. It further breaks down food, energy, and “all items less food and energy,” providing additional insight for each category.

Anticipating the Next CPI Report

The BLS publishes the date and time of the upcoming CPI report on its website, typically the second week of the month, at 8:30am ET.

Contemporary Relevance of CPI

In recent years, many people have kept a closely-trained eye on the CPI and CPI reports, after prices rose dramatically due to the pandemic in 2020. While there were a variety of reasons as to why prices increased, that bout of inflation — the first serious case of inflation since the 1980s — caught many people off guard, and strained consumers’ budgets. Though it has moderated in the years since, the cost of living has remained a contentious issue in the U.S.

It also led to the Fed increasing interest rates. Inflation, or the increase in the CPI over the past couple of years, peaked at more than 9% during the summer of 2022, and as of late 2025, was back down to around 3%.

Educational Resources and Further Reading on CPI

There are numerous resources and places to learn more about the CPI, especially after all the attention it has garnered in recent years.

Learning More About CPI

A simple internet search will net a cornucopia of results, loaded with information and insight into the CPI. You’re also likely to find opinion pieces and other media discussing the CPI’s shortcomings or strengths — it can be a good idea to consider everything, and formulate your own opinion.

But in terms of learning more about the CPI itself, the BLS publishes a handbook discussing the concepts and methods it uses, which can also be helpful if you’re hoping to bolster your CPI IQ.

CPI-Related Statistics and Where to Find Them

The BLS publishes the CPI, and a whole host of data and statistics related to it. With that in mind, it can be a great place to start when hunting down CPI-related data. There are multiple other sources that utilize the BLS’ data to compile charts, graphs, and more, but typically, it’s all sourced back to the BLS.

The Takeaway

Rising inflation decreases the value of individuals’ cash savings over time. Investing in stocks, bonds and other investments that offer inflation-beating returns may help consumers protect the value of their savings. Understanding CPI, and how it’s moving, can help you devise a strategy for your investment portfolio.

The CPI can be a deep topic, especially when you consider how it intersects and relates to other elements of the economy, such as unemployment and interest rates. And again, the more an investor understands about the underlying machinations of the economy, the more knowledge they’ll have to power their decisions in the market.

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FAQ

What does CPI stand for?

CPI is an acronym that stands for “consumer price index,” and is a monthly measure of how the aggregate cost of goods and services changes over time.

What produces or calculates the CPI?

The CPI is calculated by the Bureau of Labor Statistics (BLS), a government agency. The BLS actually produces several CPI indexes, such as the CPI-U (Consumer Price Index for All Urban Consumers) and CPI-W (Consumer Price Index for Urban Wage Earners and Clerical W, among others.

What categories of goods or services are included in the CPI calculation?

The BLS tracks food and beverage, recreation, apparel, transportation, housing, medical care, education and communication, and other various service costs when compiling the CPI.

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