Understanding your true cost of living goes far beyond just rent prices. It encompasses every recurring expense you'll face in a given location, from housing and groceries to healthcare and transportation.
What Is Cost of Living?
Cost of living refers to the amount of money needed to sustain a certain standard of living in a particular area. It includes basic expenses such as housing, food, taxes, healthcare, and transportation. The cost of living index compares these expenses to a national baseline of 100.
Key Categories to Consider
Housing (30-40% of Budget)
Housing is typically the largest expense category. This includes rent or mortgage payments, property taxes, homeowner's insurance, and maintenance costs. In cities like San Francisco or New York, housing can consume over 50% of your income.
Groceries and Food (10-15%)
Food costs vary significantly by region. Urban areas tend to have higher grocery prices, while areas near agricultural centers may offer lower costs.
Transportation (10-15%)
Consider whether you'll need a car, the cost of gas, insurance, public transit passes, and maintenance. Cities with good public transit can save you thousands annually.
Healthcare (5-10%)
Healthcare costs include insurance premiums, copays, and out-of-pocket expenses. These vary widely by state and employer.
Utilities (5-8%)
Electricity, gas, water, internet, and phone costs depend heavily on climate and local utility rates.
How to Use Our Calculator
Our cost of living calculator lets you input your actual spending in each category and compare it against different cities. Simply adjust the sliders to match your current spending, then compare with your target city.
Tips for Accurate Estimates
Research local prices on grocery store websites, check rental listings on major platforms, and factor in state and local taxes. Remember that salary adjustments don't always match cost of living differences.