Cost-of-Living Salary Equivalence: Is That Job Offer in Another City Really a Raise?
October 29, 2026
A higher salary in an expensive city may leave you with less purchasing power. A cost-of-living index summarizes the price level of a city relative to a base (100). The equivalent salary in city B = salary in A × (index B ÷ index A).
If you earn $80,000 where the index is 100 and move to a city with an index of 130, you would need $80,000 × 130 ÷ 100 = $104,000 to maintain the same standard of living. The reverse: $104,000 in the index-130 city is equivalent to $80,000 in the base city.
Skip the math and get your answer instantly:
Open the Percentage Calculator →Comparing a Job Offer
Your current job pays $85,000 in a city with an index of 100. An offer pays $95,000 in a city with an index of 118. Convert the offer to your current city's terms: $95,000 × 100 ÷ 118 = $80,508. That is 5.3% less purchasing power than $85,000, despite an 11.8% higher nominal salary. The break-even salary at the new city is $85,000 × 1.18 = $100,300. The table shows several indexes for an $80,000 base salary. Taxes also differ: state income tax, property tax, and sales tax change the take-home pay, so compare after-tax amounts.
| City index (base = 100) | Equivalent salary for $80,000 at base | Change |
|---|---|---|
| 85 | $68,000 | -15% |
| 100 | $80,000 | 0% |
| 115 | $92,000 | +15% |
| 130 | $104,000 | +30% |
| 150 | $120,000 | +50% |
Weighting by Your Spending
An overall index averages everything, but your own budget matters. Housing is typically 30% to 40% of spending and varies most between cities. If a city's housing costs are 60% higher but other goods only 10% higher, and you spend 35% on housing, your personalized index = 0.35 × 1.60 + 0.65 × 1.10 = 0.56 + 0.715 = 1.275 (27.5% higher). A renter planning to buy, or someone who works remotely and has no commute costs, may be affected differently. Build your own comparison from rent, groceries, transportation, insurance, utilities, and childcare.
Other Factors
Career growth, non-wage benefits, commuting time, climate, and family. Remote work allows some people to keep a high-city salary while living in a lower-cost area, which can raise savings by a large amount. Use reputable sources for the indexes (government regional price parities, university or research organizations) and check how recent the data is.
Use Cases
Negotiating a relocation package, comparing offers, deciding whether a raise offsets a move, or checking the pay of remote workers. The index method is an approximation; confirm with a local budget. This article is general information.
Frequently Asked Questions
How do I convert a salary between cities?
Multiply by the ratio of the destination index to the origin index.
Is a higher salary always a better offer?
No. The cost of living and taxes can offset it.
Why customize the index?
Your spending mix may differ from the average.
What is usually the biggest difference between cities?
Housing costs.
Should I compare pre-tax or after-tax pay?
After-tax pay is a better basis for comparison.