Thinking about relocating for a job or retirement? This calculator compares the cost of living between two cities, helping you understand how far your money will stretch in a new location.
How This Calculator Works
This calculator compares cities across major expense categories:
- Current City: Where you live now
- Target City: Where you're considering moving
- Current Salary: Your income in your current city
- Cost Index Difference: How expenses compare between cities
- Equivalent Salary: What you'd need to earn for the same lifestyle
The Formula Explained
Equivalent Salary = Current Salary × (Target Index / Current Index)
Or simplified: Equivalent Salary = Current Salary × Cost Adjustment Factor
If your city's index is 100 and the new city is 120, you need 20% more income to maintain your lifestyle.
Step-by-Step Example
NYC to Austin Comparison
Current: $120,000 salary in New York City
| Category | NYC | Austin | Savings |
| Housing | 100 | 52 | 48% less |
| Groceries | 100 | 96 | 4% less |
| Transport | 100 | 91 | 9% less |
| Overall | 100 | 64 | 36% less |
Equivalent Austin salary: $76,800—meaning $76,800 in Austin buys the same lifestyle as $120,000 in NYC!
Frequently Asked Questions
What is a cost of living index?
A cost of living index compares expenses between locations. A national average is typically set at 100. A city scoring 150 is 50% more expensive than average. Cities scoring 80 are 20% cheaper. The index combines housing, food, transportation, healthcare, and other expenses.
What factors affect cost of living most?
Housing is by far the largest factor (25-40% of spending) and varies most dramatically between cities. Other factors: groceries, transportation, healthcare, taxes (state income, property, sales), utilities, and childcare. A 50% housing difference matters more than a 20% grocery difference.
How should I use this when evaluating job offers?
Don't compare raw salaries across cities. A $100,000 offer in a low-cost city may provide better lifestyle than $130,000 in an expensive city. Use this calculator to convert offers to equivalent purchasing power, then factor in personal preferences like weather, family, and career growth.
Does cost of living affect retirement planning?
Absolutely. Retiring to a lower-cost area stretches your savings further. Your $1 million nest egg provides different lifestyles: modest in San Francisco, comfortable in Boise, very comfortable in rural areas. Many retirees relocate specifically to reduce expenses.
What are the most expensive cities in the US?
Top expensive metros: New York City, San Francisco, Honolulu, San Jose, Boston, and Los Angeles. Housing drives these costs. Some smaller expensive cities: Seattle, Washington DC, San Diego. International: Zurich, Singapore, Hong Kong, London are among the world's most expensive.
What are affordable alternatives to expensive cities?
For tech hubs: Austin, Denver, Salt Lake City, Raleigh offer tech jobs at lower costs. For finance: Charlotte, Jacksonville work as alternatives to NY. For West Coast lifestyle: Portland, Phoenix, Las Vegas cost less than California. Remote work has made many more locations viable.
How accurate are cost of living calculators?
Most calculators provide reasonable estimates using government data, but individual experiences vary. Your personal spending patterns matter: if you don't drive, transportation costs matter less. Sample sizes can be small for spending categories. Use calculators as starting points, then research specific costs important to you.
Should I consider just cost of living when relocating?
No—consider the full picture: (1) Career opportunities and salary growth, (2) State income taxes (0% in Texas/Florida vs 13%+ in California), (3) Quality of life (weather, culture, recreation), (4) Proximity to family, (5) Schools if you have children. A slightly higher cost area with better opportunities may be worthwhile.
Key Points to Remember
- Housing dominates: It's 25-40% of spending and varies most
- Equivalent salary: Convert offers to comparable purchasing power
- Tax differences matter: State income and property taxes vary dramatically
- Personal factors too: Lifestyle preferences matter beyond pure cost
- Research specifics: General indexes don't reflect individual priorities