Back to Blog
Guides8 min read

The Complete Guide to Using a Cost of Living Calculator

Learn how to properly use cost of living calculators to make informed relocation decisions.

Published January 15, 2026

Why Cost of Living Calculators Matter

When you're considering a move to a new city, your salary number alone doesn't tell the whole story. A $120,000 salary in San Francisco might leave you with less money than $90,000 in Austin—once you factor in taxes, rent, and daily expenses.

That's where cost of living calculators come in. They help you compare what your money is actually worth in different locations.

What to Look for in a Good Calculator

Not all cost of living calculators are created equal. Here's what separates the useful ones from the misleading:

1. Tax Calculations

The best calculators factor in both federal and state income tax. This is huge—moving from California (13.3% top rate) to Texas (0%) can save you thousands annually.

2. Housing Data

Look for calculators that use actual median rent data, not estimates. Rent is typically your biggest expense, so accuracy here matters most.

3. Your Actual Salary

Generic "20% cheaper" comparisons are nearly useless. You need calculations based on YOUR specific income level.

Common Mistakes to Avoid

Mistake #1: Only looking at rent Rent matters, but so do taxes. A city with slightly higher rent but no state income tax might leave you better off overall.

Mistake #2: Using outdated data Cost of living changes fast. Make sure your calculator uses recent data (2024 or newer).

Mistake #3: Ignoring your lifestyle A calculator can show you averages, but your actual costs depend on your choices. Do you need a car? Do you eat out often?

How to Use Realocation

Our calculator focuses on the numbers that matter most:

1. Enter your current salary — We use this for accurate tax calculations 2. Select your current city — This is your baseline for comparison 3. Review your results — See exactly how much more (or less) you'd have in each city

We show you your monthly surplus—the money left after taxes and rent—for every city. This is the number that actually matters for your quality of life.

The Bottom Line

A good cost of living calculator should give you clarity, not confusion. Look for one that uses real tax brackets, current rent data, and shows you actual dollar amounts—not vague percentages.

That's exactly why we built Realocation. Try it free and see for yourself.

Ready to see your numbers?

Use our free calculator to see where your money goes further.

Try Free Calculator