About the Cost of Living Calculator
The Cost of Living Calculator compares the dollar value of a salary or budget between two U.S. metropolitan areas, factoring in the composite index across housing, groceries, utilities, transportation, healthcare, and state-plus-local income tax. Move $90,000 from Austin to San Francisco and watch what the equivalent purchasing power looks like on both ends, plus the year-one delta you would need to negotiate to come out neutral.
It is built for remote workers weighing a move, dual-income households comparing relocation offers, recent graduates choosing between cities, retirees evaluating downsizing destinations, and HR teams calibrating geo-adjusted compensation bands. The output separates housing from non-housing cost so you can spot the cities where the rent gap dominates everything else (most of them) versus where tax structure is the deciding factor.
Index values are loaded from a cached JSON dataset assembled from BLS, BEA, and state revenue-department sources on EvvyTools’ own server — no third-party tracking pixel, no analytics request keyed to your specific city pair. Once the dataset loads, every comparison runs locally in your browser. Salary and budget inputs never leave your device.
Cost-of-living indices are population-weighted averages and will under-represent or over-represent your real experience depending on lifestyle. A childless renter in a luxury downtown studio and a homeowning family of five in the same metro live in different cost realities; the index treats them identically. Use the output as a starting point for negotiation, then audit the categories that dominate your spending against listings, quotes, and your last twelve months of actual outflow.
Compare up to 4 cities simultaneously for the best remote work location.
How to Use the Cost of Living Calculator
Select your current city and the city you are considering, then enter your annual salary. The calculator uses a composite cost index for each city (national average = 100) to determine what salary you would need in the target city to maintain the same standard of living. The category breakdown reveals exactly where costs differ most.
What Drives Cost of Living Differences?
Housing is the single largest factor in cost of living differences between cities. In San Francisco, housing costs are roughly 3× the national average; in cities like Memphis or Tulsa, they are 30–40% below average. Groceries and utilities vary less dramatically, but healthcare and transportation can also swing 20–30% between regions.
The State Tax Wild Card
Seven US states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Moving from a high-tax state like California (top rate 13.3%) or New York (top rate 10.9%) to a no-tax state is equivalent to a substantial raise. This tool accounts for that difference in its calculations.
Remote Work and Geographic Arbitrage
Geographic arbitrage means earning a salary calibrated to an expensive city while living in an affordable one. A $120,000 San Francisco salary goes further in Austin, Raleigh, or Nashville. Some employers adjust remote salaries by location, but many do not — and even adjusted salaries can leave you better off if the cost gap is large enough.
Cost of Living vs. Quality of Life
A lower cost of living does not always mean a better life. Expensive cities often offer more career opportunities, cultural amenities, walkability, and public transit. The right choice depends on what you value most. Use this tool to understand the financial trade-offs, then weigh those against lifestyle factors that matter to you personally.
Salary Negotiation and Geographic Arbitrage
Geographic arbitrage is the practice of earning a salary benchmarked to a high cost-of-living market while spending in a much cheaper one. Remote work has made this strategy accessible to millions of workers who previously had to live near their employer’s office. A software engineer earning $150,000 anchored to San Francisco wages who relocates to Tulsa or Chattanooga can see their effective purchasing power nearly double without a single pay raise.
When evaluating a remote role, ask these questions up front: Does the company pay a single national rate, or does it adjust salaries by employee location? If location-adjusted, what is the formula — metro area median, a percentage of the home-office market, or a tiered band? Some employers use tools like Radford or Levels.fyi to benchmark salaries by zip code, which can reduce your offer by 15–40% if you live somewhere affordable. Understanding the policy before you negotiate lets you frame your counter-offer around total compensation and purchasing power rather than raw numbers.
Hidden Costs That Index Data Misses
Standard cost of living indices track the categories that are easiest to measure: housing, groceries, transportation, and utilities. These are important, but they leave out several costs that can significantly change the real picture between cities.
State and local income taxes vary from 0% (Texas, Florida, Nevada) to over 13% (California), a swing worth tens of thousands of dollars at higher income levels. Property taxes are another major variable: New Jersey homeowners pay an effective rate roughly five times higher than Hawaii homeowners on properties of similar value. Car insurance rates are driven by state regulations and local accident rates — Michigan and Louisiana drivers routinely pay twice what drivers in Maine or Vermont pay for equivalent coverage. If you are leaving employer-sponsored health insurance, individual healthcare costs vary enormously by state due to differences in insurance market regulation and provider networks. Finally, climate-related costs such as heating oil in New England winters or air conditioning in Phoenix summers can add $1,500–$3,000 per year that index data smooths over. Run the numbers on all of these before committing to a move.
For more financial planning tools, try the Inflation Calculator to see how purchasing power changes over time, or the Salary to Hourly Converter to break down what your annual compensation actually looks like per hour worked. Browse all Everyday Calculator tools for more calculators that help you make smarter financial decisions.
Frequently Asked Questions
What drives cost of living differences between cities?
Housing is by far the largest driver, often differing by 2 to 3 times between expensive coastal metros and lower cost regions. Groceries and utilities vary less dramatically, while healthcare and transportation can swing 20 to 30 percent between regions.
How much does state income tax affect cost of living?
State income tax rates range from zero in states like Texas, Florida, Washington, and Tennessee to more than 13 percent at the top bracket in California. Eliminating state income tax can be equivalent to a 5 to 13 percent effective raise for higher earners.
What is a cost of living index?
A cost of living index is a composite measure that compares prices for a typical basket of goods and services across cities, with the national average set to 100. A city with an index of 130 is 30 percent more expensive than the national average.
Does a salary need to increase to maintain the same lifestyle after moving?
When moving from a lower cost city to a higher cost city, equivalent lifestyle usually requires a higher salary to offset the increased prices. The calculator estimates the salary needed in the destination city to keep purchasing power the same.
Should remote workers negotiate salary based on location?
Some employers adjust pay based on employee location while others use national pay bands. Workers considering a move should understand the employer's pay policy before relocating, because a move to a lower cost area could come with a salary reduction.