When you think about moving from one city to another, the number on your job offer is only part of the story. A 75,000 dollar salary can feel very different in a high cost coastal city than it does in a lower cost metro in the middle of the country. This cost of living calculator helps you compare cities and estimate how much income you may need to maintain a similar lifestyle after you move.
Cost of Living Calculator
How the cost of living calculator works
This calculator follows a simple idea: if a new city is more expensive overall than your current city, you may need more income to keep the same standard of living. If the new city is cheaper, you may be able to earn less and still feel similar day to day. To keep things clear, the tool uses a cost of living index where about 100 represents the overall U.S. average. Cities above 100 are more expensive than average and cities below 100 are less expensive.
Here is how each input works when you use the calculator:
- Current city: The city where you live and work today. The calculator shows its cost of living index based on simplified data so you can see whether it sits above or below the U.S. average.
- Current annual income: Your yearly salary or self employed income before taxes. Use a rough gross number rather than take home pay to keep the comparison simple.
- New city: The city you are thinking about moving to. The index value for this city shows how expensive it is relative to the national average and to your current city.
- Cost of living index details: The index values for both cities appear side by side. An index of 160 means the city is about 60 percent more expensive than the U.S. average overall, while an index of 90 would mean it is about 10 percent cheaper than average.
Once you choose both cities and enter your income, the calculator automatically estimates how much income you might need in the new city to keep a similar lifestyle. It does this by scaling your current income by the ratio of the new city index to the current city index. For example, if the new city index is 160 and your current city index is 100, the new city is about 60 percent more expensive. The calculator will multiply your income by 1.6 to estimate the income needed to keep up.
The results also include a quick visual comparison. A pair of horizontal bars shows how the cost of living index for your current city compares with the new city. This makes it easier to see at a glance whether you are looking at a small cost difference or a very large one that might call for a big change in income or lifestyle.
Imagine you earn 60,000 dollars per year in a city that is close to the U.S. average cost of living. You are considering a move to a coastal city where the cost of living index is about 160, meaning it is roughly 60 percent more expensive overall.
- Current income: 60,000 dollars
- Current city index: 100
- New city index: 160
- Relative difference: about 60 percent more expensive
In this case the calculator would estimate that you need about 96,000 dollars per year in the new city to keep a similar standard of living. That is a 36,000 dollar increase in income to offset higher prices for housing, food, transportation, and other common expenses.
Tip: When you compare job offers in different cities, look beyond the salary. Use a cost of living calculator and build a simple budget for each location so you can see how much money you might actually have left after rent, transportation, and other essentials.
Reading your results and comparing cities
The main goal of the results section is to answer two questions clearly. First, how much income would you need in the new city to keep a similar lifestyle. Second, how big is the cost of living gap between the two places. The calculator breaks this down into a few key numbers and a short narrative summary that puts them into plain language.
You will see these main outputs in the results card:
- Estimated income needed in new city: This is the headline number in blue. It is the income you would need in the new city to have roughly the same spending power as your current income in the city you live in today.
- Difference vs. current income: This shows how much higher or lower your income would need to be in dollar terms to keep your lifestyle. A positive number means you would need more income in the new city. A negative number means you could earn less and still feel similar day to day.
- Cost of living difference: This percentage tells you how much more or less expensive the new city is on average compared with the current city, based on the index values.
The second results card focuses on context. A pair of bars compares the cost of living index in each city and a short explanation describes what the difference means in words. If the new city is only five or ten percent more expensive, you might not feel a dramatic change in your budget. If it is fifty percent or more expensive, the difference is large enough that you may want to adjust your housing expectations, savings goals, or job search strategy.
| Move | Approx. cost difference | Income needed if you earn $60,000 now |
|---|---|---|
| Average city to San Francisco, CA | About 60 percent more expensive | Roughly $96,000 to keep a similar lifestyle |
| Average city to Honolulu, HI | About 80 percent more expensive | Roughly $109,000 to keep a similar lifestyle |
| Average city to Manhattan, NY | More than 130 percent more expensive | Roughly $139,000 to keep a similar lifestyle |
Note: These examples use simplified index values based on public cost of living data. Real world budgets also depend on your housing choices, taxes, household size, and personal spending habits, so your actual income needs may be different.
Limitations and smart ways to use a cost of living calculator
A cost of living calculator is a useful starting point, but it is not a full financial plan. It adds up typical costs in different cities and converts them into an index so you can compare places at a glance. That helps you understand whether a job offer in a new city is likely to feel like a raise, a pay cut, or something close to even after you adjust for local prices.
At the same time, there are several important limitations to keep in mind when you make decisions:
- Indexes use averages, not your exact lifestyle. Cost of living data combines average housing, food, transportation, utilities, healthcare, and other expenses. If you share housing, do not drive, or cook at home a lot, your personal budget may look very different from the average for your city.
- Taxes can change the picture. State and local income taxes, property taxes, and sales taxes can all affect how much money you keep. This calculator focuses on pretax income only to keep the math simple.
- Debt and savings goals matter. Student loans, childcare, retirement savings, and other financial priorities can matter more than city averages. A cost of living comparison is just one piece of your overall plan.
- Data changes over time. Cost of living indexes are updated periodically. Inflation and local housing markets can move quickly, so older data may not match current conditions.
For many people, the best way to use this calculator is as a first pass. Run a few scenarios, see which cities look much more expensive or much cheaper, and then build a simple budget for your top options. You can plug in sample rents from local listings, expected transportation costs, and any changes in your income or benefits to get a more complete picture.
Important: This calculator is for general information only. It does not provide investment, tax, or relocation advice and cannot reflect your full financial situation. Before you accept a job offer or move to a new city, consider speaking with a qualified financial professional or housing counselor.
Frequently Asked Questions (FAQs)
Where does the cost of living data in this calculator come from?
The indexes in this tool are based on simplified estimates that follow the same basic idea as widely used cost of living indexes, where about 100 represents the U.S. average and higher numbers mean more expensive cities. Official cost of living data is often based on detailed price surveys, but this calculator keeps the numbers simple for educational use.
Does this cost of living calculator include taxes?
No. The calculator works with pretax income and does not include state or local taxes. If you are comparing offers between two states, it is a good idea to look at income tax rates, property taxes, and sales taxes separately in addition to using a cost of living comparison.
How accurate are cost of living calculators?
Cost of living calculators are designed to give you a rough comparison, not a precise budget. They rely on averages for many categories, which may not match your exact spending. Use them as a starting point, then check local rents, transportation costs, and your own spending patterns to build a more detailed plan.
What if my income is much higher or lower than the examples?
The math behind the calculator scales with your income. If you earn more or less than the examples, the percentage differences between cities will still apply. However, people with higher incomes may have more flexibility to choose different neighborhoods or housing types, which can change how cost of living differences feel in practice.
Should I always avoid expensive cities?
Not necessarily. High cost cities often offer higher incomes, more job opportunities, and access to industries that are not available elsewhere. The key is to understand the tradeoffs. A higher salary in an expensive city might still leave you better off, but only if the pay increase is large enough to cover the difference in living costs.