Salary vs Cost of Living Calculator
See what the same salary is really worth in two different Indian cities.
₹15 lakh in Bengaluru is not ₹15 lakh in Indore. Rent alone can differ by a factor of three between Indian cities, which is enough to reverse the ranking of two offers. This calculator compares what you can actually save in each city after tax, rent and living costs — and tells you the salary you would need in the new city to stay level.
Two cities, two salaries
Result
Fill in the fields above and your result will appear here.
What the Salary vs Cost of Living Calculator does
Cost of living comparisons usually rely on index numbers that are hard to verify and quickly out of date. This tool takes a different approach: it asks you for the two numbers that dominate the difference — rent and everything else — and does the arithmetic on those.
That makes the comparison specific to how you actually live. A person who rents a 1BHK far from the office and cooks at home faces a very different Mumbai from someone renting a 2BHK in Bandra, and no city index captures that.
How to use this tool
- Pick your current city and enter your CTC, rent and other monthly living costs. Bank statements are a better source for the last figure than memory.
- Pick the city you are considering and enter the offered CTC.
- Enter the rent you would actually pay there. Look up three real listings for the flat size and locality you would choose — this is the number that decides the outcome.
- Estimate other costs in the new city. Food, transport and utilities usually move together with rent, but not proportionally.
- Read the equivalent salary figure — it is the most useful output for a negotiation.
Formula and method
Net income = CTC − Income tax
Annual costs = (Rent + Other monthly costs) × 12
Annual savings = Net income − Annual costs
Equivalent salary in the new city: the CTC at which
savings in city B equal savings in city A.
The equivalent salary is found by searching for the CTC that produces matching savings, which accounts for the fact that tax is progressive — a straight percentage uplift would understate what you need.
Worked example
Example: ₹12L in Pune vs ₹15L in Bengaluru
| Pune — rent ₹26,000, other ₹25,000 | ₹5.8L saved a year |
| Bengaluru — rent ₹35,000, other ₹30,000 | ₹6.5L saved a year |
| Difference | about ₹5,800 a month better in Bengaluru |
A 25% higher CTC translates into roughly 12% more actual savings. The rest is absorbed by higher rent, higher living costs and higher tax.
What your result means
The equivalent salary is what to quote in a negotiation. "I need ₹X to maintain my current savings rate" is a far stronger position than asking for a percentage.
Savings rate is the more durable measure. A city where you save 25% of net income is better for your long-term position than one where a bigger salary leaves you saving 15%.
Rent share above 30% of net income is the point at which most households start feeling constrained. Above 40% it becomes difficult to build any buffer.
Important considerations
- Rent varies more within a city than between cities. A 2BHK in outer Bengaluru and one in Indiranagar are not the same product — compare like for like.
- HRA exemption under the old regime is 50% of basic in metro cities and 40% elsewhere. For income tax purposes Delhi, Mumbai, Kolkata and Chennai are metros; Bengaluru, Hyderabad and Pune are not.
- Commute time is a real cost even when it is not a monetary one. Two hours a day is roughly 500 hours a year.
- One-time relocation costs — deposit, brokerage, movers, new furniture — are not in this comparison. Add them in the job switch break-even calculator.
- Family circumstances change the maths entirely: school fees, proximity to parents and a spouse's job prospects can outweigh every number here.
Limitations of this tool
- City rent and cost defaults are editable starting values, not survey data. City figures are editable starting values, not survey data. Replace them with real quotes for the locality and flat size you are actually considering — within one city, rent can differ by 2–3× between neighbourhoods.
- Tax is applied to CTC after the standard deduction and does not model HRA exemption, which can meaningfully favour a metro under the old regime.
- It compares two specific situations you describe. It is not a general cost-of-living index and should not be quoted as one.
Frequently asked questions
How much more should I ask for when moving to a metro?
Use the equivalent salary figure this tool produces — it is derived from your own rent and living costs rather than a generic multiplier. As a rough guide, moving from a tier-2 city to Mumbai or Bengaluru typically needs a 30–50% uplift just to stay level.
Is Bengaluru more expensive than Delhi?
For rent, generally yes in the tech corridors, though Gurugram is comparable and central Delhi is higher. For most other costs they are broadly similar. Rather than relying on a ranking, enter the actual rent for the locality you would live in — that is where the real difference sits.
Should I take a pay cut to move to a cheaper city?
Sometimes it works out well. A 20% pay cut with a 50% rent reduction can leave you saving more, which this calculator will show immediately. Weigh it against how many employers in your field operate in that city, since it affects your options later.
Does this account for HRA tax benefits?
No. HRA exemption applies only under the old regime and depends on your basic salary, actual rent paid and whether the city is classified as a metro for tax purposes. Calculate it separately and treat it as an additional advantage of a metro posting under the old regime.