Salary FYI

Cost of Living Index

Economics

A numerical indicator that compares the relative cost of living between locations, with a baseline (often 100 for the national average or a reference city) against which other areas are measured.

## Cost of Living Index

A cost of living index provides a standardized way to compare expenses across locations. Different organizations publish indexes with varying methodologies.

### Major Indexes

| Index | Publisher | Baseline | Coverage |
|-------|----------|---------|----------|
| COLI | C2ER | US average = 100 | 300+ US cities |
| WCOL | EIU | New York = 100 | 173 cities globally |
| Numbeo | Crowdsourced | New York = 100 | 500+ cities |
| Mercer | Mercer | New York = 100 | 227 cities |

### How to Use

To compare equivalent salaries:
```
Equivalent Salary = Current Salary × (Target City Index ÷ Current City Index)
```

Example: $100,000 in Austin (index 95) ≈ $170,000 in San Francisco (index 161) for equivalent purchasing power.

### Limitations

Indexes reflect averages and may not match individual spending patterns. Housing costs dominate most indexes, so renters vs. homeowners may have very different experiences.