A salary that feels comfortable in one city can feel tight in another. Before you accept a job offer in a new place, it helps to translate the offer into today’s buying power. This calculator compares living costs between two places using index values you supply — either one overall index or separate indexes for housing, food, transportation and other categories — and tells you the salary you’d need to keep the same standard of living.
How to use the cost of living calculator
- Enter your current salary.
- Choose One overall index and enter the cost index for where you live now and where you’re moving. Any index works as long as both numbers come from the same source.
- Or choose Index by category and list each category on its own line: the name, your spending share in percent, the index where you live now and the index where you’re moving.
- Optionally enter the salary offered in the new city to see whether it is a real raise.
Cost of living formula
The buying power of your current salary after the move is the salary divided by the cost ratio.
Worked example
You earn $70,000 in a city with an index of 100 and are offered $80,000 in a city with an index of 118.
Cost ratio = 118 ÷ 100 = 1.18
Equivalent salary = 70,000 × 1.18 = $82,600
The $80,000 offer is $2,600 short — about a 3.1% cut in real terms, despite the $10,000 raise on paper
With category detail, the picture can shift. Suppose housing (33% of your budget) costs 52% more in the new city, transportation 4% more, food 8%, health care 3%, utilities 12% and everything else 10%. The weighted ratio is 1.2222, so the equivalent salary rises to $85,554 — the offer falls further short, because your budget leans heavily on housing.
Getting reliable index values
| Source | What it covers | Notes |
|---|---|---|
| BEA Regional Price Parities | States, metro areas and the rest of each state | Official US government measure; national average = 100; separate housing, goods and services figures |
| BLS Consumer Price Index | Price changes over time in major metro areas | Measures inflation, not price levels between cities — not suitable for this comparison on its own |
| Rent and home-price listings | Your actual housing options | Often the most important category to check yourself |
Housing usually drives most of the difference between places, so even with an official index it’s worth pricing real rentals or homes in the neighborhoods you’d consider.
Beyond prices
- Taxes. Moving between a state with no income tax and one with a high rate can change take-home pay by several percent.
- Commute and car costs. A city with good transit can lower transportation spending enough to offset higher rent.
- Career growth. A higher-cost city may offer faster raises; model them with the pay raise calculator.
- Housing budget. Test what you can afford in the new market with the rent affordability calculator, then rebuild your spending plan with the budget calculator.
This comparison uses the index values you enter and is an estimate, not financial advice. Personal spending patterns, taxes and housing choices can make your real change larger or smaller.
Frequently asked questions
How do I compare cost of living between two cities?
Find a cost-of-living index that covers both places on the same scale, then divide the new city's index by your current city's index. Multiply your salary by that ratio to get the salary that buys the same lifestyle. An index of 118 versus 100 means you need 18% more.
Where can I find cost of living index values?
The US Bureau of Economic Analysis publishes Regional Price Parities for every state and metro area, with the national average set to 100. Many employers, relocation firms and chambers of commerce publish city indexes too. Use the same source for both places.
Why compare by category?
Housing usually varies far more between cities than groceries or health care. If you rent a small apartment or already own a home, an overall index can overstate or understate your real change. Weighting each category by your own spending gives a more personal answer.
Does the equivalent salary include taxes?
No. The comparison covers prices only. State and local income taxes, sales taxes and property taxes differ by location and can widen or narrow the gap, so check them separately before accepting an offer.