Expert Reviewed by: David Chen, CFA • Financial Planning Specialist
Planning a move? Our best cost of living calculator helps you compare expenses between two locations. Simply enter your current income and the price indices for both cities to determine the target salary needed to maintain your current lifestyle.
Best Cost of Living Calculator
Best Cost of Living Calculator Formula:
Target Salary = (New Index / Current Index) × Current Salary
Source: U.S. Bureau of Labor Statistics, Numbeo Global Index
Variables:
- Current Annual Salary: Your total gross income in your current location.
- Current City Index: The cost of living benchmark for your current city (usually base 100).
- New City Index: The relative price level of the destination city.
Related Calculators:
What is best cost of living calculator?
The best cost of living calculator is a financial tool designed to estimate how much money you need to maintain your standard of living when moving from one geographic area to another. It factors in price differences for housing, groceries, utilities, and transportation.
By comparing cost indices, users can negotiate better salaries during job offers or decide if a relocation is financially viable. It bridges the gap between raw income and actual purchasing power.
How to Calculate best cost of living calculator (Example):
- Determine your current salary (e.g., $80,000).
- Find the index for your current city (e.g., Chicago = 100).
- Find the index for the new city (e.g., New York = 140).
- Divide the New Index by the Current Index (140 / 100 = 1.4).
- Multiply the result by your salary (1.4 × $80,000 = $112,000).
Frequently Asked Questions (FAQ):
What is a cost of living index? It is a theoretical price index that measures relative cost differences over time or regions.
Why is my result higher than expected? Higher results usually indicate that housing or taxes in the new city are significantly more expensive.
Does this include taxes? Most index-based calculators focus on consumer prices; you should also check local income tax rates.
How often are indices updated? Professional databases typically update cost of living data quarterly to reflect inflation.