METHODOLOGY
Calculator Methodology and Assumptions
Living Cost Laboratory calculators use editable assumptions to estimate salary equivalents, rent affordability, monthly savings, and cost-of-living adjustments. The goal is to make trade-offs visible, not to predict a perfect personal budget.
Salary comparison method
The salary comparison calculator starts with gross salary and an estimated effective tax rate to approximate monthly take-home pay. It subtracts housing and recurring expenses to estimate monthly savings, then estimates the target-city salary needed to preserve a similar surplus.
Rent-to-income method
The rent-to-income calculator compares monthly rent and utilities against gross monthly income and estimated after-tax income. The gross ratio is useful as a quick screen, while the after-tax shelter ratio gives a more realistic view of monthly pressure.
Monthly savings method
The monthly savings calculator estimates take-home pay, then subtracts rent, utilities, groceries, transportation, insurance, debt payments, childcare, and other recurring expenses.
Cost-of-living adjustment method
The cost-of-living adjustment calculator compares current and target-city assumptions using salary, tax rate, housing, and a simple cost index for non-housing expenses.
Why assumptions are editable
Public city averages are useful starting points, but they often hide household-level differences. Rent, benefits, commuting style, car ownership, debt, savings goals, healthcare, and childcare can change the answer substantially.
Limitations
- Tax estimates are simplified and use editable effective tax rates.
- Rent and expense assumptions are examples, not real-time market quotes.
- Employer benefits, retirement contributions, insurance, and deductions can materially change take-home pay.
- The calculators do not provide financial, tax, legal, immigration, or relocation advice.