The formula
A cost-of-living index scores how expensive a place is against a baseline. If your current city is 100 and the new one is 125, everyday costs there are about 25% higher. The equivalent salary is simply:
equivalent salary = current salary × (new index ÷ current index)
A $90,000 salary moving from an index of 100 to 125 needs $112,500 to buy the same lifestyle. To test an offer, the calculator goes the other way: offered salary ÷ (new index ÷ current index) shows the offer in current-place dollars, so it can be compared directly with what you earn today.
Worked example
Suppose you earn $72,000 in a city with a cost-of-living index of 95 and are considering a move to one scored at 118, both taken from the same source. The cost ratio is 118 ÷ 95 = 1.242, so you would need about $89,432 in the new city to keep the same purchasing power, a rise of 24.2%.
The new employer offers $85,000. That looks like a $13,000 raise, but divided by the cost ratio it is worth only $68,432 in today’s dollars: $3,568, or 5.0%, less purchasing power than you have now. To match your current lifestyle on cost of living alone, the offer would need to reach about $89,432, before taxes and moving costs are considered.
Where to get index numbers
This tool does not fetch or store any index data. You choose the numbers, so you can use whichever source you trust, such as a public cost-of-living survey, a relocation package from an employer or your own budget. A more accurate method is to build a quick budget for each place (rent, groceries, transport, insurance, childcare) and use the ratio of the totals as your index.
Indexes from different sources are not directly comparable, so use two numbers from the same source for the two places.
Limits of a single index
One number blends housing, food, transport and healthcare, yet your own spending mix may differ. If you rent a studio in an expensive city, housing might drive your costs far more than the index suggests; if you own a home outright, it might drive them far less. Income taxes, commuting time, moving costs and career growth are also outside the index.
For taxes, run salaries through the take-home pay estimator, then compare the net numbers. For a full picture of a job change, see the job offer comparison.
Frequently asked questions
What is a cost-of-living index?
A number that expresses how costly a place is compared with a baseline, often 100. An index of 120 means costs are about 20% higher than the baseline.
Do I have to use a specific index?
No. Use any source, but take both places from the same one so the scales match.
Does this account for taxes?
No. State and local taxes differ, so compare after-tax pay with the take-home estimator in addition to this tool.
Why is the equivalent salary higher than a raise I was offered?
A raise that does not match the cost ratio means less purchasing power even if the number looks larger. The offer comparison shows the gap in today's dollars.
Is my data stored?
No. Everything is calculated in your browser, and nothing you enter is sent to a server.