Nerdwallets Cost of Living Calculator

How the Cost of Living Calculator Works

The cost of living calculator compares the expenses of two different locations based on a standard set of categories. These categories typically include:

• Housing (rent or mortgage)
• Utilities (electricity, water, gas, etc.)
• Transportation (public transit, car maintenance, fuel)
• Food (groceries, dining out)
• Healthcare
• Childcare (if applicable)
• Entertainment and leisure activities

The calculator uses a standardized index where 100 represents the average cost of living in a reference city. For example, if New York has an index of 150 for housing, it means housing costs 50% more than the reference city.

Once you have the cost of living indices for both locations, you can compare them to understand the relative affordability of each place.

How to Use the Calculator

Using the calculator is straightforward:

1. Select your current city and the city you're considering moving to.
2. Enter your monthly expenses for each category in your current city.
3. The calculator will adjust these expenses based on the cost of living indices for the target city.
4. Review the adjusted expenses and the overall cost of living difference.

For the most accurate results, use recent data and ensure all expenses are in the same currency.

Example Calculation

Let's say you're moving from Chicago to Austin. Here's how the calculation might work:

• Chicago's cost of living index for housing is 120, and Austin's is 110.
• Your current monthly rent is $1,200.
• The adjusted rent in Austin would be: $1,200 × (110/120) = $1,100.

This means your housing costs would be $100 lower in Austin, assuming all other expenses adjust similarly.