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Benefiting from a cost of living calculator

Taking a job in a new city is certainly a thrilling endeavor, but picking up and leaving isn't always as easy as one, two, three. Before you sign any contracts, you may want to consider comparing the cost of living in your current city to your new destination. Cost of living calculators can help you determine how much you'll need to make in order to keep your current standard of living.

Costs to calculate

The average price of salaries, health care, housing, utilities, transportation, groceries and miscellaneous goods varies from city to city. It's important to take all of these into consideration when relocating in order to determine your required salary and possible changes in disposable income.

Moving from one area to another may involve a percentage increase or decrease in your earnings. Knowing the required income to maintain your standard of living in a new area will help you negotiate a fair salary with a future employer.

Bankrate's cost of living calculator can provide an accurate comparison of the cost of living between two cities. It does this by taking six expansive categories into account and analyzing your current salary, according to data collected by the ACCRA Cost of Living Index.

Additional benefits

Knowing the cost of living in your current city, or in a city where you may eventually live, can also help you budget and save for retirement. By determining your cost of living and expendable income, you'll know what you can put into a 401(k), Roth IRA or other retirement accounts. Bankrate also has home budget and retirement calculators to help with savings.

Accuracy of cost of living calculators

Cost of living calculators on reputable sites such as Bankrate take into account regularly updated data from the ACCRA Cost of Living Index. The ACCRA index is accepted by the U.S. Bureau of Labor Statistics, the President's Council of Economic Advisers and the U.S. Census Bureau. By using ACCRA's data and your current annual income, the calculator determines the equivalent income and percentage increase or decrease in your destination city.

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