Cost of Living Calculator

Why a bigger salary in a new city may not go further

A job offer in Mumbai or Bengaluru often comes with a headline salary that looks generous next to your current pay. But headline numbers can deceive. What actually matters is how far that money stretches once rent, groceries, transport and everyday expenses are paid. A 25% raise means little if the new city is 40% more expensive to live in. This calculator strips away the illusion by translating your current salary into the equivalent figure you would need in the destination city to enjoy exactly the same standard of living.

How the index works

Every city can be scored on a cost-of-living index, with a reference city pinned to 100. A city scoring 120 is 20% pricier than the base; one scoring 80 is 20% cheaper. The calculation is a single ratio: divide the new city's index by your current city's index, then multiply your salary by that ratio. If you earn ₹10 lakh in a city indexed at 100 and move to one indexed at 120, you would need ₹12 lakh to break even on lifestyle. The maths guards against a zero or negative index so the result is always sensible.

Reading the result

The tool surfaces three numbers. The equivalent salary is the headline — the pay you should target. The salary difference shows the rupee gap, which can be negative if you are moving somewhere cheaper. The cost change expresses the same gap as a percentage, which is often the most intuitive way to grasp the move. Seeing all three together makes it obvious whether an offer is genuinely an upgrade or merely a lateral move dressed up in a larger number.

Using it in real decisions

The most powerful use of this tool is in negotiation. When an employer proposes a relocation, the equivalent-salary figure gives you a fact-based anchor to request a fair adjustment rather than accepting a nominal raise that quietly erodes your finances. It is equally useful in reverse: if you are considering a move to a tier-2 city to stretch your income, the calculator shows how much lifestyle you can maintain on a lower salary. Remember the assumptions, though — it presumes an unchanged spending pattern and relies on the indices you feed it. Pair it with a take-home salary calculator and a realistic rent check for your target neighbourhood, and you will have a clear, grounded picture before you commit to any move.