Calculator Inputs
Example Data Table
These example rows are illustrative. Adjust the indices and rates to match your own markets and compensation packages.
| Scenario | Current Index | Target Index | Current Gross | Target Offer | Required Target Gross | Outcome |
|---|---|---|---|---|---|---|
| Austin to Seattle | 100 | 128 | USD 92,000.00 | USD 112,500.00 | USD 114,380.00 | Slight shortfall |
| Karachi to Dubai | 82 | 118 | USD 48,000.00 | USD 76,000.00 | USD 70,420.00 | Strong move |
| Chicago to Denver | 109 | 111 | USD 101,000.00 | USD 104,000.00 | USD 103,350.00 | Balanced |
| London to Manchester | 145 | 112 | GBP 78,000.00 | GBP 70,500.00 | GBP 63,980.00 | Positive move |
Formula Used
Current Total Gross = Current Salary + Current Bonus + Current Allowance
Current Spendable = (Current Total Gross × (1 − Current Tax Rate)) − Current Annual Commute Cost
Required Target Spendable = (Current Spendable × Target Cost Index ÷ Current Cost Index) + Target Annual Commute Cost + Relocation Cost
Required Target Gross = Required Target Spendable ÷ (1 − Target Tax Rate)
Target Spendable = (Target Total Gross × (1 − Target Tax Rate)) − Target Annual Commute Cost − Relocation Cost
Surplus or Shortfall = Target Total Gross − Required Target Gross
Real Income Index = (Spendable Income ÷ Cost of Living Index) × 100
How to Use This Calculator
- Choose the display currency for your comparison.
- Enter labels for your current and target locations.
- Fill in current salary, bonus, allowance, and effective tax rate.
- Enter your current cost of living index and monthly commute cost.
- Fill in the target offer details, target tax rate, and target living index.
- Add target commute cost and any annualized relocation expense.
- Click Calculate Location Pay to show the result above the form.
- Review the required target gross pay, monthly advantage, and offer strength.
- Download the summary as CSV or PDF for sharing or recordkeeping.
Frequently Asked Questions
1) What does this calculator actually compare?
It compares your current compensation package with a target offer after adjusting for taxes, commuting, relocation cost, and cost of living differences.
2) Why use spendable income instead of salary alone?
Gross salary can mislead. Spendable income better reflects what remains after taxes and recurring commute expenses.
3) What is the cost of living index?
It is a relative index where a higher number means a more expensive location. A value of 120 is typically 20% costlier than 100.
4) Should I include sign-on bonuses?
You can include them if you want a first-year comparison. For long-term analysis, keep one-time amounts separate from recurring compensation.
5) How should I estimate tax rates?
Use your effective annual tax rate, not only the top bracket. This produces a more realistic take-home estimate.
6) Why is relocation cost added to required target income?
Relocation is treated as an extra financial burden in the first year, so the target package must cover it to preserve purchasing power.
7) What does offer strength mean?
Offer strength shows the target gross offer as a percentage of the required target gross. Over 100% usually means the offer clears your threshold.
8) Can I use this for remote or hybrid roles?
Yes. Adjust the target commute cost, living index, and allowances to reflect the remote or hybrid arrangement accurately.