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Cost-of-living adjustments make salaries in different cities comparable. A $100,000 salary in Manhattan and $70,000 in Memphis may provide identical purchasing power if Manhattan's COL index is ~143 vs Memphis's ~100.
Formula
Equivalent salary = Annual salary / Hours worked per year | Hourly rate = Annual salary / 2080 (for 40-hr week)
- S
- Annual Salary ($)
- H
- Hours Worked (hours/year)
- r
- Hourly Rate ($/hour)
Guida passo passo
- 1Adjusted income = Salary ÷ COL Index × 100
- 2Equivalent salary = Adjusted income × New city COL ÷ 100
- 3COL Index 100 = US national average
- 4NYC ≈ 187, San Francisco ≈ 194, Houston ≈ 93, Memphis ≈ 83
Esempi risolti
Ingresso
$80,000 in Chicago (COL 107) vs Seattle (COL 150)
Risultato
Chicago adjusted: $74,766. Equivalent Seattle salary needed: $112,149.
Domande frequenti
Should I compare salary or total compensation?
Always compare total compensation: salary + benefits (health insurance, 401k match, PTO, stock options). Benefits can add 20–40% to true value.
How do I account for cost of living differences?
Use cost-of-living calculators or databases (Numbeo, MIT Living Wage). A $100k salary in San Francisco ≠ $100k in a lower-cost area.
What about remote vs office work?
Remote roles often pay less but save commute time and cost. Calculate true hourly rate including commute hours and expenses.
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