Cost of Living Calculator Bankrate
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Reviewed by Calculator Editorial Team
The cost of living calculator helps you estimate how much you need to earn to maintain your current lifestyle in different cities. By comparing housing, food, transportation, and other expenses, you can make informed decisions about where to live or work.
What is Cost of Living?
The cost of living refers to the amount of money needed to maintain a certain standard of living in a specific location. It includes essential expenses like housing, food, transportation, healthcare, and utilities. Comparing the cost of living helps individuals and businesses understand the financial implications of relocating or expanding operations to different areas.
Cost of living indexes are typically calculated by comparing the price of a standardized basket of goods and services in different locations to a base city or national average.
How to Use This Calculator
To use the cost of living calculator, follow these steps:
- Enter your current monthly expenses for housing, food, transportation, and other categories.
- Select the city you want to compare against.
- Click the "Calculate" button to see your estimated cost of living in the selected city.
- Review the results and adjust your budget as needed.
Cost of Living Formula
The cost of living index (COLI) is calculated using the following formula:
COLI = (Sum of all expenses in target city) / (Sum of all expenses in base city) × 100
Where:
- Sum of all expenses in target city - Total monthly expenses in the city you're comparing to
- Sum of all expenses in base city - Total monthly expenses in your current city
A COLI of 100 means the cost of living is the same as your base city. A COLI above 100 means the cost of living is higher, and a COLI below 100 means the cost of living is lower.
Example Calculations
Let's say you live in New York City with monthly expenses totaling $5,000. You want to compare this to San Francisco, where monthly expenses total $6,000.
COLI = ($6,000) / ($5,000) × 100 = 120
This means the cost of living in San Francisco is 20% higher than in New York City.
Comparing Cost of Living
Comparing the cost of living can help you make informed decisions about where to live or work. Here are some key factors to consider:
- Housing - Rent or mortgage payments can vary significantly between cities.
- Food - Grocery prices and restaurant costs can differ based on location.
- Transportation - Public transit, gas prices, and vehicle maintenance costs vary by city.
- Healthcare - Medical expenses and insurance costs can be higher in some areas.
- Utilities - Energy bills and other utility costs may vary by region.
By using the cost of living calculator, you can get a comprehensive view of the financial implications of relocating or expanding operations to different areas.
FAQ
- What is the difference between cost of living and quality of life?
- The cost of living refers to the financial burden of maintaining a certain standard of living, while the quality of life considers factors like healthcare, education, safety, and leisure opportunities. A high cost of living doesn't necessarily mean a low quality of life, and vice versa.
- How often should I update my cost of living calculations?
- It's a good idea to review your cost of living calculations annually or whenever you experience significant changes in your income or expenses. Prices and wages can fluctuate over time, so regular updates help ensure your budget remains accurate.
- Can I use this calculator for international comparisons?
- Yes, you can use this calculator to compare the cost of living between different cities within the same country or between international locations. However, be aware that international comparisons may involve currency conversion rates and other factors that can affect the accuracy of the results.
- How do I adjust for inflation when comparing cost of living?
- To adjust for inflation, you can use historical cost of living data or inflation indexes to compare prices from different time periods. This helps you understand how much prices have increased or decreased over time, allowing for more accurate comparisons.
- What are some common mistakes to avoid when comparing cost of living?
- Some common mistakes include comparing cities with significantly different economies, ignoring indirect costs like taxes and fees, and not accounting for changes in your personal circumstances. It's important to consider all relevant factors when comparing the cost of living.
About this calculator
Updated June 25, 2026. Formulas, assumptions, and limitations are shown directly on this page.
Formula and Sources
The cost of living index is calculated using the formula provided in the "Cost of Living Formula" section. The calculator uses average monthly expenses for each category in the selected cities.
Sources: U.S. Bureau of Labor Statistics, City-specific cost of living reports, and user-submitted data.