Cost of Living Comparison Calculator
How This Calculator Works
Equivalent Salary = Current Salary x (Target City Index / Current City Index)
Salary Difference = Equivalent Salary - Current Salary
Percent Difference = ((Target Index - Current Index) / Current Index) x 100
Index baseline: 100 = US national averageThe cost of living comparison calculator helps you understand how far your salary will stretch in a different city. Whether you are considering a job offer in a new metro area, planning a relocation, or simply curious about relative living costs across the United States, this tool translates abstract index numbers into a concrete dollar amount you can use to make informed decisions.
How Cost of Living Indices Work
Cost of living is measured using a composite index where 100 represents the national average. A city with an index of 150 is 50% more expensive than average, while a city at 80 is 20% cheaper. The indices in this calculator are derived from data across five major spending categories: housing, grocery, transportation, healthcare, and utilities. Housing typically has the largest impact on overall cost of living because it represents the single biggest expense for most households.
Each category is weighted according to its share of typical household spending. Housing costs, including rent and home prices, dominate the calculation because they vary the most between cities. A city like San Francisco (housing index 290) costs nearly three times the national average for housing alone, which is the primary driver of its high overall index despite relatively normal costs in other categories.
The Equivalent Salary Calculation
The core calculation is straightforward: your equivalent salary in the target city equals your current salary multiplied by the ratio of the target city's overall cost of living index to your current city's index. For example, if you earn $75,000 in Chicago (index 116) and are considering a move to San Francisco (index 179), you would need approximately $75,000 x (179/116) = $115,733 to maintain the same standard of living.
This does not mean you cannot live on less — it means that to have the same purchasing power for housing, food, transportation, healthcare, and utilities, you would need that equivalent salary. Many people successfully relocate to higher-cost areas on lower salaries by making lifestyle adjustments such as choosing a smaller apartment, using public transit, or living in a more affordable neighborhood.
Understanding the Category Breakdown
The category-by-category comparison is just as important as the overall number. You might find that a city has a high overall cost of living driven primarily by housing, while grocery, transportation, and healthcare costs are actually reasonable. This breakdown helps you identify which specific expenses will change the most and plan your budget accordingly.
For example, moving from Houston (overall 101) to Seattle (overall 149) represents a 48% overall increase, but the breakdown reveals that housing costs roughly double (96 to 210) while utilities actually decrease (108 to 88). This kind of detail helps you budget more accurately than a single overall number.
Limitations to Keep in Mind
Cost of living indices are averages for entire metropolitan areas and do not capture neighborhood-level variation. Living in downtown Manhattan versus the outer boroughs of New York can mean dramatically different housing costs while technically being in the same metro area. Additionally, these indices do not account for state income taxes (which vary from 0% in Texas and Florida to over 13% in California), property taxes, or differences in lifestyle expectations between cities.
Frequently Asked Questions
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What You Should Know
Making Sense of Cost of Living Data
Relocating to a new city is one of the most significant financial decisions you can make. Beyond the headline salary number, understanding how far your money will actually go in a new location is critical for maintaining your quality of life and meeting your financial goals.
The Remote Work Factor
The rise of remote work has fundamentally changed the cost of living equation. Previously, you had to live where the jobs were — often in expensive coastal cities. Now, many workers can earn a big-city salary while living in a lower-cost area. However, some employers are adjusting pay based on employee location, which makes understanding cost of living differentials even more important. If your employer offers geographic pay adjustments, use this calculator to evaluate whether a lower salary in a cheaper area still comes out ahead.
Beyond the Numbers: Quality of Life
Cost of living is only one dimension of the relocation equation. Climate, proximity to family, cultural amenities, outdoor recreation, school quality, crime rates, commute times, and career growth opportunities all factor into the decision. A city with a lower cost of living index might not have the industries, networking opportunities, or lifestyle you need to thrive professionally and personally.
Similarly, a city with a high cost of living often offers advantages that justify the premium: broader career opportunities, higher earning potential over time, diverse cultural experiences, and access to world-class healthcare and education. The key is finding the balance between financial sustainability and the lifestyle that makes you happy.
Planning Your Relocation Budget
When planning a move, go beyond the equivalent salary calculation. Research actual rental prices in the neighborhoods you are considering, check local utility rates, and price out your typical grocery basket at stores in the area. Factor in moving costs (typically $2,000-$10,000 depending on distance), potential changes to your commuting costs, and any state tax differences. Building a detailed budget based on real local prices will give you a much more accurate picture than index numbers alone.