Cost of Living CalculatorFormula

## How Cost of Living Adjustments Work

Cost of living indexes compare the relative expense of different cities. Scale your salary proportionally to maintain the same purchasing power.

### Formula

**Equivalent Salary = Current Salary x (New City Index / Current City Index)**

An index of 100 is the national average. Higher means more expensive.

Esempio Risolto

You earn $70,000 in a city with COL index 100 and are moving to a city with index 130.

  1. Ratio = 130 / 100 = 1.30
  2. Equivalent salary = $70,000 x 1.30 = $91,000
  3. You need $21,000 more to maintain the same lifestyle
  4. Cost increase = 30.0%