Relocation Break-Even Calculator
Weigh a job move: how many months it takes for a higher salary to repay moving costs once the new cost of living is factored in.
How it works
Net annual gain = (new − old salary) − (current spending × COL change%) · Break-even months = moving cost ÷ (net annual gain ÷ 12)
A bigger salary in a pricier city can leave you no better off. The honest comparison subtracts the extra cost of living — applied to what you actually spend — from the raise, giving a net annual gain, then measures how long that gain takes to repay the upfront cost of moving. A short break-even means the move is a quick financial win; a net gain at or below zero means the raise is an illusion once local prices are counted.
Worked example
Moving for a $15,000 raise ($85k to $100k) costs $8,000. If the new city is 12% pricier and you spend $55,000, living costs rise $6,600, so the net gain is $8,400 a year ($700/month). The move pays for itself in about 11.4 months.
Frequently asked questions
How do I find the cost-of-living difference between two cities?
Free cost-of-living index tools compare rent, groceries, transport and more between metros and report a single percentage difference. Rent usually drives most of the gap, so weight it heavily if it dominates your budget.
What should I include in moving costs?
Movers or a truck rental, travel, security deposits and first/last month rent, utility setup, new furniture, and any overlap where you pay two rents. Employer relocation packages can offset much of this — subtract anything reimbursed.
What if the new city is cheaper?
Enter a negative cost-of-living change. A cheaper city adds to your net gain on top of the raise, so break-even is faster — and even a lateral salary can come out ahead.
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Educational estimate, not financial or tax advice. Real taxes, benefits and offers vary — confirm details with your employer or a professional.