Worked example: New York to Dallas
The default scenario compares a $100,000 salary in New York-Newark-Jersey City with Dallas-Fort Worth-Arlington. The 2024 BEA all-items RPP indexes are 112.563 and 103.090.
Equivalent target salary is $100,000 x 103.090 / 112.563 = $91,584. That means Dallas needs about $8,416 less nominal salary to match the same metro-average buying power.
A $95,000 target offer is $95,000 - $91,584 = $3,416 above the RPP-adjusted equivalent. That is $95,000 / $91,584 - 1 = 3.7% more buying power than the original salary after this all-items adjustment.
The result does not include tax, commute, mortgage rate, rent timing, childcare, healthcare, debt, or moving costs. Treat it as a first screening line, then build a full monthly budget.
How to compare salary between two cities with BEA RPP
Choose the current metro and target metro, then compare their all-items RPP values. The ratio gives a first-pass salary adjustment for metro-average price levels.
What salary do I need in another city?
Multiply your current salary by the target metro RPP divided by the current metro RPP. That target salary preserves the same RPP-adjusted buying power before taxes and personal spending differences.
Cost of living salary calculator formula
The core formula is target salary = current salary x target RPP / current RPP. The target-offer check compares the actual offer with that equivalent salary.
Why metro price indexes differ from neighborhood costs
Metro indexes cover a broad area. A downtown apartment, suburb, school district, or commute pattern can differ sharply from the metro average.
What this salary comparison excludes: taxes, rent timing, childcare
The result excludes federal, state, and local tax differences, actual rent quotes, mortgage rates, childcare, healthcare, debt payments, benefit quality, and one-time moving costs.
How to use a target offer after a relocation
If the offer clears the RPP-adjusted salary, build a monthly budget next. If it misses, use the gap as a negotiation anchor or ask for relocation support.
When to use custom RPP or employer data
Use custom RPP values when your metro is not in the built-in list or your employer uses a specific internal geographic pay band. Keep the source and date attached to the number.
