How to compare the cost of living between cities?
If you’re thinking of moving to a new town, the Cost of Living Calculator is more than just a tool—it may be helpful as part of your home buying journey. Here’s how it can help:
- Budgeting: Knowing the cost of living in a new city helps you budget not just for your mortgage, but your day-to-day expenses. This ensures that your dream home is both attainable and sustainable, keeping your lifestyle and financial health in harmony.
- Negotiating your salary: If you’re relocating for a job, understanding the cost of living in your soon-to-be hometown can help you negotiate a salary that works for your lifestyle.
- Choosing the perfect spot: Maybe you have a couple of areas in mind for your move. A Cost of Living Calculator may allow you to compare these areas side by side, helping you choose the one that makes the most financial sense.
- Planning for what’s next: Knowing your cost of living can help you plan more effectively. Whether it’s saving for your children's education or planning for retirement, understanding your expenses is everything.
- Understanding market differences: Every town has its unique real estate heartbeat. A Cost of Living Calculator helps you understand how much house you can afford in different markets so you can invest wisely. Note: Our Cost of Living Calculator covers most but not all areas of the United States.
How can a Cost of Living Calculator help home buyers?
In a country as large as the U.S., living costs differ dramatically depending on where you plant your roots. Here are the categories that are usually factored into a living costs calculator:
- Housing: your biggest expense
This is probably your top consideration, and for good reason. The price of homes can vary wildly from place to place. This calculator will show you the dramatic variations in rent and mortgage expenses around the country. - Healthcare: prioritizing wellness
Healthcare is also a biggie, especially if you have specific needs, and costs can vary from location to location. If you're set on a place with a lot of hospitals and clinics, your healthcare costs may be lower, thanks to the competition. On the flip side, more rural spots might have steeper costs because there are fewer options. - Food: what’s for dinner?
Another hefty expense for most of us, groceries can vary greatly depending on where you live. Everything from local taxes to labor and transportation costs can affect what your weekly stash of protein, veggies and snacks will run you. - Utilities: keeping the lights on
Monthly utilities can include electricity, water, gas, and internet. There’s no getting around these expenses (unless “off-the-grid” is your ultimate goal), so it’s good to get a handle on average costs in the locations you’re scouting. - Transportation: getting around
For rural and suburban folks, the price of gas and car payments are top of mind. For city dwellers who can hop on a bus or walk wherever, those costs don’t come into play as much. It’s good to explore your transportation options so you can work them into your budget. - Taxes: budgeting for the inevitable
Nobody escapes Uncle Sam’s annual invoice. State and local taxes can significantly impact your cost of living, with some areas charging far more in property or sales taxes than others. The good news? Homeowners may be able to subtract mortgage interest from their taxable income. - Extras: living your best life
Along with cold, hard bills, the cost of living also includes some extras that make life enjoyable. If your new town comes with museums, concerts, festivals and a vibrant food scene, that can impact the cost of living there.
What expenses are included in cost of living?
In a country as big as the U.S., living costs differ dramatically depending on where you plant your roots. Here are the categories that are usually factored into a living costs calculator:
- Housing: your biggest expense
This is probably your top consideration, and for good reason. The price of homes can vary wildly from place to place. This calculator will show you the dramatic variations in rent and mortgage expenses around the country. - Healthcare: prioritizing wellness
Healthcare is also a biggie, especially if you have specific needs, and costs can vary from location to location. If you're set on a place with a lot of hospitals and clinics, your healthcare costs may be lower, thanks to the competition. On the flip side, more rural spots might have steeper costs because there are fewer options. - Food: what’s for dinner?
Another hefty expense for most of us, groceries can vary greatly depending on where you live. Everything from local taxes to labor and transportation costs can affect what your weekly stash of protein, veggies and snacks will run you. - Utilities: keeping the lights on
Monthly utilities can include electricity, water, gas, and internet. There’s no getting around these expenses (unless “off-the-grid” is your ultimate goal), so it’s good to get a handle on average costs in the locations you’re scouting. - Transportation: getting around
For rural and suburban folks, the price of gas and car payments are top of mind. For city dwellers who can hop on a bus or walk wherever, those costs don’t come into play as much. It’s good to explore your transportation options so you can work them into your budget. - Taxes: budgeting for the inevitable
Nobody escapes Uncle Sam’s annual invoice. State and local taxes can significantly impact your cost of living, with some areas charging far more in property or sales taxes than others. The good news? Homeowners may be able to subtract mortgage interest from their taxable income. - Extras: living your best life
Along with cold, hard bills, the cost of living also includes some extras that make life enjoyable. If your new town comes with museums, concerts, festivals and a vibrant food scene, that can impact the cost of living there.
Cost of living index
Cost of living indexes turn abstract price differences into actionable data. One of the most trusted, published by the Council for Community and Economic Research, sets 100 as the national average. Cities that score above 100 tend to be pricier, while those below it are typically easier on the wallet. A city with a score of 120, for example, means everyday expenses run 20% higher than the U.S. average. A 95 is 5% savings across categories, from housing to healthcare.
Example Cost of Living Comparison
Here's a snapshot of the average monthly costs in two popular cities:
| Category | New York, NY | Austin, TX |
|---|---|---|
| Housing | $3,100 | $1,800 |
| Utilities | $150 | $120 |
| Groceries | $450 | $375 |
| Transportation | $160 | $140 |
| Healthcare | $500 | $400 |
| Miscellaneous | $400 | $350 |
How to use this data
A Cost of Living Calculator translates raw data into real-world decisions. Where data for a particular city is available, the calculator gives you a side-by-side breakdown of how your everyday expenses stack up between your current city and a potential new one. Whether you’re chasing a better job, a better view, or just better value, this tool helps you budget with clarity.
It quantifies how far your current income will stretch in a new location, letting you evaluate job offers, negotiate relocation packages or decide if that “dream city” is worth the premium. Sometimes a higher salary in a pricey market nets less than a moderate income in a lower-cost area. This data shows you which choice builds your net worth.
Cost of Living Calculator FAQs
A Cost of Living Calculator is a tool that compares how far your income will stretch in different cities by estimating everyday expenses like housing, food, healthcare, transportation and more. For cities with available data, it draws from trusted data sources to show how costs in one city stack up against another, helping you make informed financial decisions.
Many Cost of Living Calculators take taxes into account—often including income, sales and property taxes—because they can significantly impact your budget. This gives you a more complete picture of what life in a new city might cost.
Possibly. Whether you’re considering a higher-paying role in a more expensive city or a lifestyle-driven move to a more affordable area, a Cost of Living Calculator may help you compare living expenses between your current city and the one you’re considering.
Housing—by far. Whether you’re renting or buying, home costs tend to vary the most between locations and often are your largest monthly expense.
Not quite. Cost of living refers to the amount of money needed to cover basic expenses like housing, food, transportation and healthcare in a specific location. Standard of living is a broader measure of overall quality of life. It includes not just what things cost, but also factors like income levels, job opportunities, access to education and healthcare and even lifestyle perks like entertainment, dining and green space.