Cost of Living Calculator

How to calculate Cost of living calculator?

This calculator totals common monthly expenses for each city and compares the sums to estimate the income required to maintain your current lifestyle.

Key formula: equivalent_income_city_2 = current_monthly_income + (total_expenses_city_2 - total_expenses_city_1)

Using the Cost of living calculator calculator: an example

Example values: current monthly income = $4,000; total expenses in City 1 = $2,500; total expenses in City 2 = $3,400.

Step-by-step calculation:

• Calculate total expenses for City 1: $1,200 rent + $300 utilities + $500 groceries + $200 transport + $100 healthcare + $200 misc = $2,500.
• Calculate total expenses for City 2 using its local costs (example totals): = $3,400.
• Find the monthly difference: $3,400 − $2,500 = $900.
• Estimate equivalent income in City 2: $4,000 + $900 = $4,900. That is the approximate monthly income needed to maintain the same lifestyle.

Frequently Asked Questions

Does the calculator include taxes?

No. This tool compares out‑of‑pocket monthly expenses; include tax effects by entering your post-tax income or adjusting income inputs accordingly.

Can I include irregular expenses?

Yes. Convert irregular or annual costs (for example, insurance or subscriptions) to a monthly average and add them to the miscellaneous category for each city.

How accurate are the estimates?

Accuracy depends on the quality of your inputs. Use up-to-date local prices and review major categories to improve the estimate.