Comprehensive Guide
Learn more in our Planning Guide.
How it works
A salary is only a number until you divide it by what life costs where you live it, and cost-of-living indexes exist to make that division possible. The convention sets the national average at 100; a city at 118 costs about 18% more than average, a city at 92 about 8% less. The calculator takes your current salary and multiplies it by the ratio of the two indexes — new city divided by current — to find the equivalent salary: the income that buys the same basket of housing, groceries, transport and services in the new location. An $85,000 salary in a city indexed at 118 requires only about $66,300 in one indexed at 92 — and matching that $85,000 in a city indexed at 140 takes over $100,000. The percentage change is the negotiation number: the raise a move demands just to stand still. Two cautions keep the estimate honest. Indexes are averages, and housing dominates them — renters and homeowners can experience the same city very differently. And salary equivalence ignores taxes, which differ enough between states to move the answer by several points. Use the result as the floor of the negotiation, then check housing listings and a take-home-pay estimate against your actual situation before you sign anything.Formula
Equivalent salary = current salary x (new index / current index)
Tips
- Housing dominates every index — check real listings in the new city before trusting the average.
- The percentage change is your negotiation floor: a move needs at least that raise to stand still.
- Add a take-home-pay check; state taxes can move the answer by several points.
- Remote workers keep the salary and take the cheaper city — the strongest version of this trade.
- Renters and homeowners experience the same city differently; match the index to your situation.
Frequently asked questions
How do I compare salaries between two cities?
Multiply your current salary by the ratio of the two cost-of-living indexes — new city divided by current city. An $85,000 salary in a city indexed at 118 needs about $66,300 in one indexed at 92 to buy the same standard of living, and over $100,000 in one indexed at 140.
What is a cost-of-living index?
A composite measure of prices in a place, conventionally set so the national average equals 100. A city at 118 costs about 18% more than average. Indexes bundle housing, groceries, transport, utilities and services — and housing dominates, which is why renters and homeowners can experience the same city very differently.
Should I take a pay cut to move somewhere cheaper?
Run the equivalence first. A 15% pay cut moving to a city 25% cheaper is a raise in disguise — your standard of living rises even as the salary falls. The reverse is the trap: a 20% raise into a city 40% more expensive is a pay cut with a flattering headline.
Do cost indexes include taxes?
Usually not, and state and local taxes can move the real answer by several points. A salary-equivalent move between a no-income-tax state and a high-tax one needs a take-home-pay comparison as well. Treat the index result as the floor of the analysis, not the whole of it.
How accurate are cost-of-living indexes?
Good for a first pass, wrong at the individual level. They are averages of baskets that may not match yours — a household that cooks at home and owns outright barely feels grocery and rent inflation. Check real housing listings and your actual budget categories before committing to a number.