A cost-of-living index compares the relative price of similar goods and services between two places — this translates that ratio directly into a salary figure.
How it works
Current salary is scaled by the ratio of the new city’s index to the current city’s index — a higher new-city index means a higher salary is needed there to maintain identical purchasing power.
What this does not include
Cost-of-living indexes vary in methodology and what they weight (housing-heavy vs. broader baskets) — this calculator applies whatever index values are entered, not a specific index source’s own particular weighting.
How to use this calculator
- Enter current salary, current city index, and new city index.
A worked example
A $100,000 salary moving from a city with cost-of-living index 100 to one with index 150: equivalent salary = 100,000 × (150/100) = $150,000, a 50% increase needed to maintain the same purchasing power.
Moving to a city with index 80 instead: equivalent salary = $80,000, a −20% change — the same purchasing power costs less in a cheaper city.
What the variables mean
| Variable | Meaning |
|---|---|
| Current salary | Salary in the current city |
| Current/new city index | Relative cost-of-living index for each city |
Edge cases worth knowing
This is purchasing-power equivalence, not a salary recommendation. It shows what income maintains the same standard of living, not what a job offer should actually pay, which also depends on market rates in the new location.
A current city index of zero makes the ratio undefined — there’s no baseline to scale from, so the calculator declines to show a result.
Frequently asked questions
Where do cost-of-living index numbers come from?
Various sources publish city cost-of-living indexes using different methodologies — this calculator computes the math once index values are chosen, not the index itself.
Does this account for state tax differences?
No — a general cost-of-living index typically doesn’t isolate state income tax differences, which can meaningfully change the actual take-home comparison beyond what a pure cost-of-living index captures.
Is a lower-index city offer always a pay cut?
Not necessarily in real terms — a lower nominal salary in a much cheaper city can still represent equal or better purchasing power than a higher salary in an expensive one, which is exactly what this calculator is designed to reveal.
