How to use a Cost of Living Index
A cost of living index compares the average cost of living in a particular area with the average cost of living elsewhere. Many indexes contain data about most major cities in the United States. A cost of living index can be helpful when you're deciding about a job offer in another area.
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Instructions
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Pick two cities to compare. If you have received two job offers, compare the offers to each other and look at each offer separately. If you have received one, you can compare your current salary to the offer.
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Search the Internet for a cost of living index calculator. Many sites offer calculators. Consult several calculators, since each one may use slightly different information to calculate the cost of living in each area (see Resources).
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Enter the city, state and salary total for the first city into the first area in the calculator. If the job offer is for an hourly wage rather than a salary, first determine what you expect to make in one year. Repeat information for the second city without salary.
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Review the dollar amount returned by the calculator. This is the salary that you would have to make in the second area to be equivalant to the salary offered in the first area. For example, if you entered a $40,000 salary into the first area and received a result of $60,000 that's the comparable salary.
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Tips & Warnings
Don't enter a salary, unless required per instructions, a calculator determines the comparable salary for you.
