Relocating for a new job often means considering not just the advertised salary but also the cost of living in the new location. A job that pays $70,000 in a city with a low cost of living might not provide the same lifestyle as $70,000 in a more expensive city. The Salary Equivalent Calculator helps you determine what salary you would need in a new city to maintain your current standard of living.
How the Calculation Works
The calculator uses a straightforward formula based on the Cost of Living Index (COLI) of both your current and potential new city, along with any expected cost of living adjustments for the new role itself. The COLI is a measure that compares the general expenses in different geographic locations. An index of 100 typically represents the national average. A COLI of 115 means that city is 15% more expensive than the national average, while a COLI of 85 means it's 15% cheaper.
The formula used is:
Equivalent Salary = Current Salary * (New City COLI / Current City COLI)
Additionally, if the new role comes with an anticipated cost of living increase (separate from the difference in city indices), this is factored in:
Final Equivalent Salary = Equivalent Salary * (1 + Cost of Living Increase / 100)
For example, if you earn $60,000 in a city with a COLI of 100 and are considering a move to a city with a COLI of 120, the calculation would be:
This means you would need an annual salary of $75,600 in the new, more expensive city to maintain the same purchasing power as your current $60,000 salary.
When to Use This Calculator
Job Relocation: When considering job offers in different cities or states.
Salary Negotiation: To understand the true value of a proposed salary in a new location.
Budgeting for a Move: To estimate the income needed to sustain your lifestyle after relocating.
Comparing Offers: To objectively compare multiple job offers across various locations.
Remember that the Cost of Living Index is a general guide. Actual expenses can vary based on individual spending habits, housing choices, transportation, and lifestyle. This calculator provides a strong starting point for your financial planning.
function calculateEquivalentSalary() {
var currentSalary = parseFloat(document.getElementById("currentSalary").value);
var costOfLivingIncrease = parseFloat(document.getElementById("costOfLivingIncrease").value);
var newCityCostOfLiving = parseFloat(document.getElementById("newCityCostOfLiving").value);
var currentCityCostOfLiving = parseFloat(document.getElementById("currentCityCostOfLiving").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = "";
if (isNaN(currentSalary) || isNaN(costOfLivingIncrease) || isNaN(newCityCostOfLiving) || isNaN(currentCityCostOfLiving)) {
resultDiv.innerHTML = "Please enter valid numbers for all fields.";
return;
}
if (currentCityCostOfLiving <= 0) {
resultDiv.innerHTML = "Current City's Cost of Living Index must be greater than zero.";
return;
}
if (newCityCostOfLiving < 0 || costOfLivingIncrease < 0) {
resultDiv.innerHTML = "Cost of Living Increase and New City's Cost of Living Index cannot be negative.";
return;
}
var equivalentSalaryBase = currentSalary * (newCityCostOfLiving / currentCityCostOfLiving);
var finalEquivalentSalary = equivalentSalaryBase * (1 + costOfLivingIncrease / 100);
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2,
maximumFractionDigits: 2,
});
resultDiv.innerHTML = "To maintain your lifestyle, you would need approximately: " + formatter.format(finalEquivalentSalary);
}
function resetCalculator() {
document.getElementById("currentSalary").value = "";
document.getElementById("costOfLivingIncrease").value = "";
document.getElementById("newCityCostOfLiving").value = "";
document.getElementById("currentCityCostOfLiving").value = "";
document.getElementById("result").innerHTML = "";
}