About the Cost of Living Calculator
Moving for a job can look like a big raise on paper and still leave you worse off once rent, groceries and transport are priced in. This cost of living calculator converts your current salary into the equivalent salary in a new location using cost-of-living index numbers, then shows whether a specific job offer beats, matches or falls short of it.
It is useful when weighing a relocation offer, negotiating pay for a transfer, or deciding between remote-work locations. Enter a cost index for where you live now and where you are going — for example from the US Bureau of Economic Analysis Regional Price Parities, a local chamber of commerce survey or any consistent index where 100 is the average.
The calculation assumes all of your spending scales with the index. In reality housing usually differs most between cities while many goods cost about the same everywhere, and taxes vary by state and country, so treat the result as a starting point for negotiation rather than an exact figure.
With the default inputs, the equivalent salary needed is $97,500.00. Change any value above to recalculate instantly.
How to use the cost of living calculator
- 1Enter your current salary.
- 2Look up a cost-of-living index for your current and new city from the same source.
- 3Enter both index values (100 = average).
- 4Optionally enter the salary you have been offered in the new city.
- 5Compare the equivalent salary with the offer to see if the move is a real raise.
Formula and method
A cost-of-living index expresses the price of a typical basket of goods and services relative to an average of 100. Dividing the new city’s index by the current one gives a price ratio; multiplying your salary by that ratio gives the income needed to buy the same basket in the new location.
The offer comparison runs the ratio the other way: offer × (I_current ÷ I_new) shows what the new salary would be worth in your current city. The method assumes every part of your spending scales by the same ratio and ignores differences in income tax, which can be significant between states or countries.
- S
- Current salary
- I_current
- Cost index of your current location
- I_new
- Cost index of the new location
Worked examples
Moving to a city 30% more expensive
Going from an index of 100 to 130 means prices are 30% higher, so a $75,000 salary needs to become $97,500. A $90,000 offer looks like a $15,000 raise but is $7,500 short — it buys what about $69,231 buys today.
Leaving a high-cost city for a cheaper one
Moving from an index of 150 to 95 cuts costs by about 36.7%, so $76,000 would maintain a $120,000 lifestyle. A $100,000 offer is a pay cut on paper but $24,000 above break-even — like earning about $157,895 in the old city.
Small difference using regional price parities
With price levels of 98.2 and 104.5, the new area is about 6.4% more expensive, so $60,000 must become about $63,849. A $65,000 offer clears that by roughly $1,151 a year.
Frequently asked questions
How do I calculate cost of living between two cities?+
Take a cost-of-living index for each city from the same source, divide the new city’s index by the current one, and multiply your salary by the result. That is the salary needed to keep the same standard of living.
Where can I find cost of living index numbers?+
In the US, the Bureau of Economic Analysis publishes Regional Price Parities for every state and metro area, where 100 is the national average. Other options include the C2ER Cost of Living Index and national statistics offices abroad.
What makes the biggest difference in cost of living?+
Housing is usually the largest driver, followed by transport, childcare, healthcare and local taxes. Groceries and consumer goods tend to vary much less between cities than rent and home prices do.
Does this include taxes?+
No. Index numbers measure prices, not taxes. Moving between states or countries with different income tax rates can change your take-home pay a lot, so check an income tax calculator for both locations as well.
How much of a raise should I ask for when relocating?+
At minimum, ask for the equivalent salary this calculator shows plus moving costs. Many people also negotiate a relocation package or signing bonus to cover the one-time cost of the move.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.