Category weights explained
Category Weights Explained Personal Inflation Tool Guide
Category weights explained in plain language: it is just category spend divided by total spend. Bigger weights shape your personal inflation the most. This guide uses a quick example to show how weights and category inflation combine.
Published: January 7, 2026 · Updated: January 7, 2026 · By FinToolSuite Editorial
Calculate your personal inflation
Enter your categories, weights, and inflations to see the weighted rate.
Disclaimer
- Educational only. Worked numbers are illustrative. No guarantees.
- Use round numbers if exact receipts are not handy.
- Keep personal data light; see the Privacy Policy.
Category weights explained
A category weight is the share of your total spend. If housing is half of your spend, its weight is 50%. Think of your budget as a basket: the bigger the slice, the more its price changes move your personal inflation.
Quick worked example
Total monthly spend: $3,000.
- Housing: $1,500 → weight 50%.
- Food: $600 → weight 20%.
- Transport: $300 → weight 10%.
- Utilities: $300 → weight 10%.
- Other: $300 → weight 10%.
If housing inflation is 7% and food is 5%, those weights push the weighted average more than smaller categories. See the housing example and food example for more illustrations.
How weights roll into personal inflation
The tool multiplies each category inflation by its weight, then adds them up. High weight plus high inflation equals a hot category. If a high-weight category cools, your personal inflation can drop quickly.
Use the weights to decide what to test first, then compare runs in the scenario view.
See your weights in the tool
Enter your categories, check weights, and view the weighted personal inflation rate.
Need more context? Read personal inflation basics or how to interpret your rate.
FAQs
How do I calculate a category weight? ▼
Divide the category spend by total spend. Example: $600 food / $3,000 total = 20%.
Why do big categories dominate? ▼
A higher weight means any inflation in that category moves the weighted average more than smaller categories.
What if my weights don’t sum to 100%? ▼
Add or adjust categories until they roughly cover your spend. Round numbers are fine; keep it directional.
How do weights connect to personal inflation? ▼
Each category inflation is multiplied by its weight, then summed. That weighted average is your personal inflation index.
Do I need exact receipts? ▼
No. Use sensible estimates to see direction. You can refine later if you want.