- About This Answer
This calculator allows you to compare the cost of living in different locations. To do this we first calculate average living expenses based on your current location and desired location. These expenses are adjusted based on your annual income and household size. Next, the tax category uses tax data at the federal, state and local level to determine estimated tax burden. We then calculate the percentage difference between your current and desired locations in the categories of taxes, housing and food. Finally, we use these percentages to calculate the annual income that would give you a comparable standard of living in your desired location.
- Our Assumptions
• Adults: 1 = Single, Adults: 2 = Married filing jointly.
• Number of children equals the number of dependents.
• Otherwise assume all deductions and retirement account contributions are zero.
• Number of personal exemptions is equal to the number of individuals in the household. Meaning, a single person is 1, a married couple is 2 and any additional children are counted as an additional individual.
Cost of Living Calculator

Wondering if you can afford to move to a new city or how your current expenses stack up against other locations? A cost of living calculator is an essential tool for making informed financial decisions about where to live and work. These practical resources help you compare expenses between different areas, factoring in housing costs, groceries, transportation, healthcare, and other everyday necessities.
By inputting your current location, income and destination, you can quickly see how your purchasing power might change with a move. Understanding cost of living differences can help you negotiate appropriate compensation, budget effectively, plan for retirement and avoid financial surprises when relocating to a new community.
Work with a financial advisor to help you plan for any needed cost of living adjustments in retirement. Speak with an advisor today.
How to Use Our Cost of Living Calculator
Our cost of living calculator is a valuable tool that helps you compare expenses between different locations. For the most precise results, gather detailed information about your current spending habits before using the cost of living calculator. Track your monthly expenses across major categories like housing, utilities, food, and transportation. Some advanced calculators allow you to customize these inputs rather than using default values. The more specific data you provide, the more accurate your cost of living comparison will be.
You'll begin in our calculator above by inputting your current location (the city and state you live in right now). You can then input a city you either want to move to or want to compare your current city with and input it as well. The next most important input is to add in your current household income, from all sources, click how many adults live in the home and how many children you have. With all inputs complete you'll be able to see data around how the two cities compare across the major categories of taxes, housing and food.
Economists consider mobility to be a good thing. If people are willing and able to move they can relocate to take the jobs that are best suited to their skill sets. Understanding the cost of living in a given place helps you make an informed decision about the salary you'll need to maintain the same standard of living. Once you understand the cost differences, you may want to create a transition budget if you plan on moving to the new area.
While cost of living calculators provide valuable insights, they don't tell the complete story. Consider factors that calculators might not fully capture, such as quality of life, career opportunities, proximity to family or access to amenities that matter to you. Use the calculator as one tool in your decision-making process, not the sole determining factor. A financial advisor can help you better understand these decisions and create a personalized financial strategy for your relocation.
What Impacts Your Cost of Living
Understanding what impacts your cost of living is essential for making informed financial decisions. Your lifestyle choices, from the size of your home to how often you dine out, directly affect your monthly expenses. Economic factors like inflation and local tax rates silently influence your purchasing power, while life changes such as having children or retiring can dramatically shift your financial needs. By recognizing these key factors, you can better anticipate expenses, plan your budget accordingly, and potentially make adjustments that align with your financial goals and priorities. Here are some of the most important factors to keep in mind.
1. Housing
First up is housing. Your budget will be more sustainable if you can spend less than 30% of your income on housing. If you pay more than that you're considered "burdened" by your housing costs. Depending on where you live and how much you make, paying less than 30% of your income to keep a roof over your head may or may not be possible. So, moving to an area with lower housing costs can make a serious difference to your overall cost of living.
2. Food

Another big expense category is food. While you can make changes to your lifestyle to cut back on the cost of food, you're still affected by food costs in your area. That's why our cost of living calculator takes local food prices into account. Even basics like a pound of pasta or a bag of apples can vary in cost from place to place.
Most cities exempt grocery items from sales taxes but a few do not. That's the kind of thing that can make a big difference to your bottom line. If you never cook you won't be as affected by a change in food prices if you move. But if you're on a tight budget you're probably cooking most, if not all, of your meals at home. That means you want to keep a close eye on grocery costs.
3. Taxes
What about taxes? State and local taxes can combine with your federal income taxes to take a serious bite out of your income. When you consider that some cities have zero sales tax while others have state and local combined sales taxes in excess of 9%, it's easy to see why taxes need to be included in any cost of living comparison. While every state has property taxes, these vary considerably from place to place. There's even greater variation in income taxes. Some states don't have any state-level income tax. Others, like California and New Jersey, have high income taxes.
4. Education and Childcare
Depending on your circumstances there are several other large expenses that may shape your cost of living. There's the cost of education and whether you'll need to take out student loans to get (or complete) a college education. There's the cost of childcare if you need it. This could mean the cost of a caregiver who comes to your house, of pre-kindergarten or of after-school daycare. If you or your partner is a stay-at-home parent or if you have extended family helping you out you won't need to shell out for these expenses. Anyone else will need to budget accordingly.
5. Transportation
Transportation costs are a major expense for many Americans. Only a small percentage of American workers commute by public transit. The rest take a car. That means paying for repairs, gas and possibly tolls and parking permits. Carpooling can help you cut these costs by sharing them with others. Still, most American commuters ride alone. Transportation is a big factor in the cost of living because it's so closely related to job security. Unreliable transportation can mean a lost job.
6. Healthcare

Next up is healthcare. Healthcare premiums go from the affordable to the astronomical. Then, there's the cost of the care itself. The same medical procedure can be several times more expensive in some locations than in others. If you have employer-sponsored healthcare you might not have to pay anything for medical insurance. But if you're self-insuring by purchasing a health plan on the health insurance marketplace you could be looking at monthly costs in excess of $500 depending on where you live.
Despite a decrease in the number of uninsured Americans, medical costs still account for a significant portion of the bankruptcies in this country. That's why it's important to look for insurance you can afford and have an emergency fund to cover unexpected expenses.
7. Other Expenses
Many Americans have nothing left in their budget after paying for the necessities mentioned above. But there are other necessities that aren't captured by food, childcare, medical costs, taxes, transportation and housing. These "extras" include clothing, personal care items and household cleaning products. You could go without some of them for a little while, but they're still necessities.
We're talking about things like toothpaste, the clothes you wear to work and the sponge and dish soap you use to clean your dishes. The good news is that these tangibles have gotten less expensive even as the costs of childcare, housing and medical care have gone up. Items including clothing, cell phones and computers have become relatively more affordable. That may not entirely take the sting out of your rising rent or your high healthcare premiums, but it can help.
8. Where You Live
There are direct costs of just living in a certain place that may add or subtract your monthly costs, but this is often factored into your income as well. In many cases, this is one of the largest costs that you incur because it impacts things like your housing costs, utilities, groceries, entertainment and more. Utilizing this cost of living calculator can help estimate those differences before you move and get in over your head. This is an overarching category that has an impact on most of the other categories.
How to Prepare for Retirement With Cost of Living in Mind
Estimating future expenses is a vital step in retirement planning. Many people want to retire in a location that is different from where they currently live, but this could impact how much you need to budget for your golden years. Planning for retirement requires careful consideration of how your expenses will change over time. Understanding the cost of living and its impact on your retirement savings is essential for a secure financial future. Here's how to prepare for retirement with cost of living in mind:
- Calculate your retirement number based on inflation projections: Inflation erodes purchasing power over time, meaning the dollars you save today will buy less in the future. When planning for retirement, use inflation calculators to estimate how much your essential expenses might increase over the next 20-30 years. Experts typically recommend planning for 2%-3% annual inflation, though healthcare costs often rise at higher rates.
- Consider geographic arbitrage for retirement: Where you choose to retire can dramatically impact your cost of living. Many retirees relocate to areas with lower housing costs, taxes, and overall expenses to stretch their retirement dollars further. Research potential retirement locations early and compare factors like property taxes, state income taxes, healthcare access, and general cost of living to find the best fit for your budget.
- Build flexibility into your retirement income strategy: Creating multiple income streams can help you adapt to changing costs of living during retirement. Consider a combination of Social Security benefits, pension payments, retirement account withdrawals, and possibly part-time work or passive income sources. This diversification allows you to adjust your income as needed when facing unexpected cost increases or inflation spikes.
Preparing for retirement with cost of living considerations requires foresight and regular reassessment of your financial plan. By understanding how expenses may change, choosing your location strategically and creating flexible income sources, you can build a retirement plan that maintains your desired lifestyle regardless of economic changes.
Tips for Financial Planning
- A financial advisor can help you create a long-term financial plan that includes your retirement goals and investment choices. Finding a financial advisor doesn't have to be hard. SmartAsset's free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Consider this guide to help you estimate what type of salary might be needed to live comfortably in any U.S. state.