What Is the Cost of Living Index?
The EasyFinance Cost of Living Index tool lets you compare how far your salary would go in different cities around the world. Enter your current salary and select your city, and the tool calculates the equivalent salary you would need in each of 10 major world cities to maintain the same purchasing power. The index uses NYC as the baseline at 100, so a city with index 80 means you need 20% less income to live equally well there.
How the Index Works
| City | Index (NYC = 100) | Salary Multiplier |
|---|---|---|
| New York City | 100 | 1.00x |
| San Francisco | ~95 | 0.95x |
| London | ~93 | 0.93x |
| Tokyo | ~83 | 0.83x |
| Sydney | ~82 | 0.82x |
| Toronto | ~73 | 0.73x |
| Berlin | ~70 | 0.70x |
| Austin | ~67 | 0.67x |
| Lisbon | ~55 | 0.55x |
| Bangkok | ~42 | 0.42x |
The index numbers shown are illustrative. The actual tool uses its own embedded dataset which may differ slightly. The formula is: `equivalent salary = current salary * (target city index / your city index)`. A higher index means a more expensive city.
Step-by-Step Usage
Enter your current annual salary in the input field
Select your current city from the dropdown list
The tool instantly calculates equivalent salaries for all 10 cities in the dataset
Review the diff percentage column to see which cities require more or less income
Use the results to evaluate job offers, relocation decisions or remote work compensation
What the Index Covers
The cost-of-living index includes housing (rent and purchase prices), groceries and food, restaurant meals, transportation, utilities (electricity, heating, cooling, water), and general consumer goods and services. It does not include income tax, which varies dramatically by country and can change the picture significantly. A city may have a low cost of living but high income tax, reducing your net advantage.
Understanding the Limitations
The index is pre-tax — it does not account for income tax, social security or national insurance contributions
It reflects average costs; your actual spending depends on lifestyle, housing choices and family size
Housing costs can vary enormously within a single city based on neighborhood and commute distance
Index values are updated periodically and may not reflect real-time price changes
Healthcare costs are not always fully captured, which matters significantly in countries without universal coverage
Remote Work Implications
If you work remotely for a company in an expensive city but live in a cheaper location, your effective purchasing power can be significantly higher. A $100,000 salary in San Francisco might provide the same lifestyle as $55,000 in Lisbon. However, some employers now implement location-based pay adjustments, reducing your salary if you move to a lower-cost area. When negotiating remote work arrangements, understanding these differentials helps you advocate for fair compensation.
Salary Negotiation Scenarios
When evaluating a job offer in a different city, do not compare raw salary numbers directly. A $120,000 offer in New York City may provide less purchasing power than a $90,000 offer in Austin. Use the calculator to normalize offers: convert each to the equivalent in your current city, then compare. If a company is relocating you, use the tool to estimate the salary adjustment needed to maintain your standard of living.
Expatriate Considerations
For international relocations, the cost-of-living index is just one factor. Additional considerations include currency exchange rates (which fluctuate), visa and work permit costs, relocation packages, international health insurance, differences in public services (education, healthcare, transportation quality) and the social adjustment of living in a new culture. Some companies offer a cost-of-living adjustment (COLA) as part of expat packages — use this tool to verify that the adjustment is fair.
Comparing US Cities
Even within the United States, cost of living varies dramatically. Housing in San Francisco or New York can cost three to four times more than in cities like Austin, Memphis or Indianapolis. The index captures these differences. A developer earning $150,000 in San Francisco might maintain the same lifestyle on $100,000 in Austin, with the added benefit of no state income tax in Texas. Always compare total compensation including benefits, not just salary.
Frequently Asked Questions
Q: What is the index based on?
A: Numbeo-style cost-of-living indices using NYC = 100. Includes housing, food, transportation and utilities. Updated periodically — verify with current sources before relocating.
Q: Does this include taxes?
A: No — it is pre-tax cost of living. Tax structures vary widely by country. For net-equivalent, research local tax brackets separately.
Q: How accurate is the equivalent salary?
A: It is a rough estimate. Real cost of living depends on your lifestyle, housing choices and family size. Use as a starting point.
Q: What about remote work?
A: If you work remotely from a cheaper country, you can save significantly. Some employers adjust pay based on location; others do not. Negotiate accordingly.
Q: Is my data uploaded?
A: No — all math runs locally in your browser.
