Use the cnnmoney Cost of Living Calculator to determine the equivalent salary needed in a new city to maintain your current standard of living. Input your current income and the cost indices for both your current and target locations.
CNNMoneymarket Cost of Living Calculator
CNNMoneymarket Cost of Living Calculator Formula
Formula Sources: Salary.com COL Index, NerdWallet Guide
Variables
- Current Annual Salary: Your pre-tax income in your current location ($).
- Current City Cost Index: The index number for your current location. Often the national average is set to 100.
- Target City Cost Index: The index number for the city you plan to move to.
- Required Salary: The calculated income needed in the target city to match your current purchasing power.
What is cnnmoney cost of living calculator?
The Cost of Living (COL) Calculator estimates the salary needed in a new geographic location to maintain the same quality of life or purchasing power you currently enjoy. It accounts for differences in local prices for goods and services, such as housing, groceries, transportation, and healthcare.
Cost of living indices are generally based on a baseline (often 100 for the national average). A city with an index of 145 is considered 45% more expensive than the national average. Using this index ratio, the calculator scales your current salary to the new location’s economic reality. This is crucial for negotiating a job offer in a new, often more expensive, market.
How to Calculate Equivalent Salary (Example)
- Identify Inputs: Current Salary = $80,000. Current Index (City A) = 90. Target Index (City B) = 135.
- Determine the Cost Ratio: Divide the Target Index by the Current Index. Ratio = 135 / 90 = 1.5.
- Apply the Ratio: Multiply your Current Salary by the Cost Ratio. Required Salary = $80,000 × 1.5.
- Final Result: The required equivalent salary in City B is $120,000 to maintain the standard of living from City A.
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- Mortgage Payment Calculator
- Compound Interest Calculator
- Debt-to-Income Ratio Calculator
- Retirement Savings Projection
Frequently Asked Questions (FAQ)
What does a Cost of Living Index of 100 mean?
An index of 100 typically represents the national average cost of living. Cities above 100 (e.g., 120) are more expensive than the national average, and cities below 100 (e.g., 85) are less expensive.
Is the housing cost included in the COL Index?
Yes, housing costs are typically the most significant component of the overall Cost of Living Index. The index usually aggregates costs for housing, groceries, transportation, utilities, and health care.
How accurate is this calculator for a real move?
The calculator provides a strong estimate, but it is not 100% accurate. Individual spending habits (e.g., public transit vs. car ownership, dining out frequency) can cause your actual cost of living to vary. Use it as a powerful negotiation tool.
Why is my current city index set to 100 by default?
Setting the current city’s index to 100 simplifies the calculation to be a direct percentage change relative to your known salary, but you should update it with the true index value if you have it.