How does the salary comparison work?

It compares your free cash — money left after taxes, rent, groceries, and transport — in two cities. A higher salary doesn't always mean more money in your pocket when cost of living differs dramatically.

What is 'free cash' in this calculator?

Free cash = net monthly income (after taxes) minus mandatory expenses (rent, groceries, transport). It's the money you actually control — for savings, entertainment, travel, or investing.

How accurate are the city cost estimates?

The defaults are 2026 averages for 1-bedroom rent, basic groceries, and monthly transit pass. Your actual costs may differ. Use the rent override under More Options to enter your real numbers.

Does it account for different currencies?

Yes. Each city shows costs in its local currency with proper formatting. For cross-currency comparisons (e.g., USD vs EUR), the calculator focuses on purchasing power rather than exchange rates.

Cost of Living & Salary Comparison Calculator

A higher salary doesn't mean more money. Compare what you actually keep after taxes and living costs.

Where will you be richer?

Salary A (annual)

City A

Salary B (annual)

City B

Override rent A

$/mo

Leave 0 to use city average

Override rent B

$/mo

Leave 0 to use city average

—

How to Use This Calculator

Compare Offers tab

Enter Salary A and City A, then Salary B and City B. The calculator computes your net income after taxes, subtracts rent, groceries, and transit — and shows your free cash in each city. Under "More options," you can override the default rent with your actual number.

Relocation tab

Keep the same salary and switch cities. See how much you need to earn in the target city to maintain your current lifestyle. Great for asking HR: "I need $X to match my current standard of living."

Remote Trade-off tab

Compare an office salary in an expensive city vs a lower remote salary in a cheaper city. See whether the salary cut is offset by lower living costs. Often the "pay cut" is actually a raise in real terms.

The Formula

Free Cash = (Annual Salary × (1 − Effective Tax Rate)) ÷ 12 − Rent − Groceries − Transport

The calculator uses city-specific effective tax rates that include federal, state/regional, and social contributions. Cost data covers 85+ cities across 30+ countries, updated for 2026.

Example

David — Two Offers

Offer A: $120,000 in Austin, TX. Offer B: €100,000 in Amsterdam.

Austin free cash$5,459/mo

Amsterdam free cash€3,020/mo

WinnerAustin by $2,439/mo

Despite a nominally lower salary, Austin wins due to no state income tax and lower rent. David used the Remote Trade-off tab to check: if he negotiated a $105K remote role from Denver, his free cash would be $5,100 — nearly matching Austin with better quality of life.

FAQ

How does the calculator handle different currencies?▼

Each city displays costs in its local currency. For cross-currency comparisons, focus on purchasing power — what you can afford with your free cash — rather than exchange rates, which fluctuate daily.

Why not use PPP (Purchasing Power Parity)?▼

PPP is useful for macroeconomics but misleading for personal decisions. Your rent, groceries, and transport costs are real, local prices — not abstract indices. This calculator uses actual costs rather than PPP adjustments.

Can I customize the cost estimates?▼

Yes. Under "More options," you can override the default rent for each city. If you know your actual rent, enter it for a more accurate comparison. Grocery and transport costs use city averages.

What tax rates does it use?▼

Approximate effective total tax rates for a single filer at median income in each city. This includes federal/national tax, state/regional tax, and mandatory social contributions (FICA, NIC, Sozialabgaben). Your actual rate depends on filing status, deductions, and income level.

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