Formulas and 2026 figures checked & updated: July 2026
How to Use the Cost of Living Calculator
- Enter your current annual salary.
- Select the city you currently live in from the dropdown.
- Select the city you're considering moving to.
- Review the cost-of-living index for both cities — 100 represents the national average.
- See the equivalent salary you'd need in the new city to maintain your current standard of living.
- Check the percentage difference between the two cities. Example: a $75,000 salary in Dallas (index 100) needs to be roughly $140,000 in New York (index 187) to maintain the same purchasing power — an 87% cost-of-living increase.
What This Calculator Does
The Cost of Living Calculator estimates the salary you'd need in a new city to maintain the same standard of living you have today, based on each city's overall cost-of-living index relative to the national average.
The result is driven by three inputs: your current salary, your current city, and the city you're considering moving to — each mapped to a composite cost-of-living index where 100 represents the national average. As a general benchmark, major coastal metros like New York, San Francisco, and Los Angeles often carry indexes of 140-190 or higher, driven mainly by housing costs, while many metros in the South and Midwest sit closer to 85-105. Housing is typically the single largest driver of the difference between cities, often accounting for 30-40% of a household budget.
This calculator is useful when evaluating a job offer in a different city, negotiating a relocation package, or simply deciding whether a lower-cost or higher-cost move makes financial sense. It's a starting point for those conversations rather than a final answer — actual costs vary by neighborhood, housing type, and lifestyle, and the index doesn't capture differences in state income tax, which can meaningfully change your real take-home pay on top of the cost-of-living gap. It's also a useful reality check when a remote job offer or company relocation package quotes the same salary regardless of location — a flat salary can mean very different actual purchasing power depending on where you live.
Formula
Equivalent Salary = Current Salary × (Destination Index ÷ Origin Index)Both cities' index values are relative to a national average of 100. A destination index higher than the origin means you'd need more income there to maintain the same lifestyle; a lower destination index means the same lifestyle costs less, so a smaller salary would maintain your current purchasing power. The ratio between the two index values, not their absolute size, is what determines the equivalent salary.
- IndexComposite cost-of-living score, 100 = US national average
Examples
Example: Dallas → New York
$75,000 salary in Dallas (index 100) moving to New York (index 187).
You'd need roughly $140,000 in New York to maintain the same standard of living — an 87% cost-of-living increase.
Example: San Francisco → Austin
$150,000 salary in San Francisco (index 180) moving to Austin (index 105).
A salary of roughly $87,500 in Austin would maintain the same purchasing power — showing how much lower-cost metros can offset a pay cut.
Example: Chicago → Nashville
$90,000 salary in Chicago (index 116) moving to Nashville (index 98).
You'd only need about $76,000 in Nashville to maintain the same standard of living — roughly $14,000 less while keeping the same lifestyle, before accounting for any state income tax differences.
Key Terms Explained
- Inflation
- The gradual rise in prices that erodes purchasing power, so a dollar buys less over time.
- Real Return
- An investment's return after subtracting inflation — what your money actually gains in purchasing power.
Methodology
Uses an approximate composite cost-of-living index per city (100 = national average), blending housing, food, transportation, healthcare, and miscellaneous costs. Equivalent salary = current salary × (destination index ÷ origin index). Figures are for general planning only, are updated periodically rather than in real time, and do not include state income tax differences, which should be evaluated separately when comparing a relocation.
Frequently Asked Questions
How is a cost-of-living index calculated?+
A cost-of-living index blends housing, food, transportation, healthcare, and other everyday expenses into one number, with 100 typically representing the national average. A city with an index of 150 costs roughly 50% more than average to live in, while a city with an index of 90 costs roughly 10% less than the national average.
Is this calculator's data exact?+
No — the index values are approximate composite figures for general planning, not a precise or live data feed. Actual costs vary significantly by neighborhood, housing type, family size, and lifestyle. Use this as a starting point for research and budgeting, not a final answer for a relocation decision.
Should I also factor in state income tax when relocating?+
Yes — cost-of-living indexes typically don't include income tax differences. Moving from a no-income-tax state to a high-tax state (or vice versa) can meaningfully change your real take-home pay on top of the cost-of-living difference.
How much more expensive is New York than the average US city?+
New York carries one of the highest cost-of-living indexes in the country, commonly estimated around 180-190 versus a national average of 100 — meaning overall costs run roughly 80-90% higher, driven mostly by housing. The exact premium varies by borough and neighborhood; Manhattan is considerably more expensive than the outer boroughs.
What makes up a cost-of-living index?+
A cost-of-living index typically blends several weighted categories: housing (usually the largest factor), groceries, transportation, healthcare, utilities, and miscellaneous goods and services. Housing costs vary the most between cities, which is why cities with expensive housing markets tend to have the highest overall index scores even when other categories are closer to average.
Is it cheaper to live in a smaller city than a big metro?+
Generally yes — most small and mid-sized cities have a lower cost-of-living index than major coastal metros, mainly due to lower housing costs. This isn't universal, though: some smaller cities in high-demand areas carry above-average costs, and a lower cost of living sometimes comes with lower average salaries for the same job, so it's worth comparing both sides of the equation.
Can I save my results?+
Yes. Use “Save results” to store a snapshot. Without an account it remains in this browser. If you log in, saved scenarios sync securely to your SmartRates account so they are available on your other devices.
How do I share my calculation?+
Click “Share” in the toolbar to copy a link (or open your device’s share sheet). The link encodes your exact inputs, so whoever opens it sees the calculator pre-filled with the same numbers and the same result.
Can I email my calculator results?+
Yes. Click “Email results” to open your default email application with the current inputs, results, and calculator link already included. Review the message and choose the recipient before sending.
Can I export or print my results as a PDF?+
Yes. Click “Export PDF” to open a clean, printable summary of your inputs and results that you can save as a PDF or print. It includes a timestamp and a link back to the calculator.
How accurate are the calculator results?+
The arithmetic follows the formula and assumptions documented on this page. The result is still an estimate because actual rates, fees, taxes, timing conventions, eligibility rules, and provider calculations can differ. Use figures from your official quote, statement, contract, or tax form before making a financial decision.
Which inputs have the biggest effect on the result?+
Rate, time, starting balance, recurring payments or contributions, and fees usually have the largest effects. Change one input at a time to create a conservative, expected, and optimistic scenario instead of relying on a single forecast.
Are taxes, fees, and inflation included?+
Only when they appear as an input or are explicitly described in the methodology. Do not assume an omitted cost is zero. Review the formula and methodology sections to see exactly what is included before comparing the result with an outside quote.
Can this calculator predict future rates or returns?+
No. A calculator projects the assumptions entered; it cannot predict market returns, inflation, variable interest rates, tax-law changes, or provider decisions. Rerun the calculation with several assumptions to understand the range of possible outcomes.
Why might my lender, bank, broker, or tax software show a different result?+
Professional systems may use daily timing, transaction dates, compounding conventions, rounding rules, account-specific fees, credits, eligibility details, or regulations that a general-purpose calculator cannot know. A small difference can be rounding; a large difference usually means an assumption or included cost is different.
Disclaimer: Calculations are for informational purposes only and do not constitute professional financial advice. Please consult with a certified professional before making financial decisions.