Bankrate.com Cost of Living Calculator

The Bankrate.com Cost of Living Calculator helps you compare living expenses between different cities. By adjusting for key cost factors, you can make more informed decisions about where to live or work.

How to Use This Calculator

Using the cost of living calculator is straightforward. Follow these steps:

Enter your current city's cost of living index (COLI) or select a predefined city.
Input the target city's COLI or select another city for comparison.
Specify your monthly expenses in your current city.
Click "Calculate" to see how your expenses would change in the target city.
Review the results and adjust your budget as needed.

Cost of Living Index (COLI) is a standardized measure that compares the cost of living between cities. A COLI of 100 represents the national average.

How the Cost of Living Calculator Works

The calculator uses the following formula to adjust your expenses:

Adjusted Expense = (Original Expense × Target COLI) ÷ Current COLI

Where:

Original Expense = Your monthly expense in your current city
Target COLI = Cost of Living Index of the city you're comparing to
Current COLI = Cost of Living Index of your current city

The calculator considers key cost factors including:

Housing (rent or mortgage)
Utilities
Groceries
Transportation
Healthcare
Entertainment

Example Calculation

Let's say you live in New York City with a COLI of 250 and have monthly expenses of $3,000. You want to compare this to San Francisco with a COLI of 280.

Adjusted Expense = ($3,000 × 280) ÷ 250 = $3,360

This means your monthly expenses would be approximately $3,360 in San Francisco, which is about 12% higher than in New York City.

Interpreting Your Results

When you receive your cost of living comparison results, consider the following:

Higher Adjusted Expense: If your adjusted expense is higher, you'll need to budget more for living in the target city.
Lower Adjusted Expense: If your adjusted expense is lower, you'll have more disposable income in the target city.
Percentage Difference: The percentage difference shows how much more or less expensive living is in the target city compared to your current city.

Use this information to:

Plan your budget accordingly
Decide if the cost difference is worth the benefits of living in the target city
Adjust your salary expectations if you're considering a job relocation

Frequently Asked Questions

What is a Cost of Living Index (COLI)?: A Cost of Living Index (COLI) is a standardized measure that compares the cost of living between different cities. A COLI of 100 represents the national average, while higher numbers indicate more expensive cities and lower numbers indicate less expensive cities.
How accurate is the cost of living calculator?: The calculator provides an estimate based on the Cost of Living Index. While it's generally accurate, actual expenses can vary based on individual circumstances and specific locations within a city.
Can I use this calculator for international comparisons?: Yes, you can use the calculator for international comparisons. Simply enter the COLI for the cities you're comparing and your monthly expenses.
What if I don't know the COLI for my city?: You can look up the COLI for your city using resources like the U.S. Bureau of Labor Statistics or international cost of living databases. If you're unsure, you can use the national average COLI of 100 as a starting point.
How often should I use this calculator?: You can use the calculator whenever you're considering a move to a new city, planning a budget for a new job, or simply want to compare living costs between different locations.