Cost of living expenses fluctuate often, but the factors used to make these calculations have remained consistent. The following are the components considered when calculating cost of living comparisons.
Housing
Mortgage and rent are necessary expenses factored into cost of living comparisons. The index will show you the percentage difference between the cost of housing in both cities. For example, you’ll find the cost of rent is 6% lower in Abilene than in Amarillo, Texas.
Food
Groceries and restaurants are another necessary expense factored into the cost of living comparisons. Our data shows grocery costs are 24.74% higher in Miami than in Atlanta, which could mean you need to tighten up your budget if you move.
The good news is you can look at individual items, like eggs and bread, and budget according to what you usually eat.
Transportation
Transportation costs are a significant part of your budget, including servicing, repairs, and gasoline. We used our calculator to compare the cost of living between Chicago and Boston, showing that Windy City's gasoline is 2.63% more expensive.
Entertainment
Entertainment is a discretionary budget item, which is leftover money to spend on non-essentials, such as concerts. If you're moving somewhere expensive, you can always reduce your entertainment budget as much as possible to make room for transportation or rent.
You'll find a movie costs $13.60 in Denver and only $12.74 in Dallas, giving you an idea of the cost of living comparisons for entertainment.
Healthcare
Healthcare costs include doctor's visits, contact lens prescriptions, hospital stays, and anything healthcare-related. You'll find that healthcare costs in Seattle are 32.73% higher than in DC, with a $40.45 price difference for a dentist visit.
Of course, your health insurance plan could also dramatically change how much you'll spend.
Income
Your income is essential to your cost of living and determines what apartment you can rent and your discretionary spending. Unfortunately, the cost of living calculator doesn't account for your income taxes, retirement, life insurance, or similar items.
However, our cost of living calculators makes it easy to determine what to expect from your current income. For example, if you earn $4,000 in Indianapolis, you'll need a monthly after-tax household income of $4,105 in Cleveland.
Other Costs to Consider
Your cost of living also considers expenses like toiletries, newspapers, yoga classes, dentist visits, prescription drugs, and other everyday expenses. So, for example, you can figure out how much you'll spend on a haircut or manicure.
You’ll still need to factor in budget categories that the cost of living index doesn’t, like your student loans or outstanding credit card debt.
