How this calculator works
This calculator compares the cost of living between two cities using a composite index relative to San Francisco (index = 100). The index is built from four weighted categories that reflect how tech workers actually spend their money: housing (40%), food and groceries (20%), transportation (15%), and healthcare (25%). These weights differ from general cost-of-living calculators because engineers in major tech hubs spend a disproportionate share of income on housing and healthcare, and often less on transportation (many tech companies provide shuttles or remote work options).
The equivalent salary formula is straightforward: Equivalent Salary = Your Salary x (City B Index / City A Index). If you earn $200,000 in San Francisco (index 100) and move to Austin (index 70), you'd need $200,000 x 70/100 = $140,000 in Austin to maintain the same standard of living. Conversely, if you keep your $200,000 salary in Austin, you effectively have 43% more purchasing power.
Cost of living index by city
All indices are relative to San Francisco = 100. A score of 70 means the city is roughly 30% cheaper than San Francisco across all categories.
| City | CoL Index | $200K equiv. |
|---|---|---|
| San Francisco | 100 | $200,000 |
| New York | 95 | $190,000 |
| Seattle | 85 | $170,000 |
| Los Angeles | 82 | $164,000 |
| Boston | 80 | $160,000 |
| Singapore | 80 | $160,000 |
| London, UK | 78 | $156,000 |
| Sydney | 75 | $150,000 |
| Dublin | 73 | $146,000 |
| Denver | 72 | $144,000 |
| Paris | 72 | $144,000 |
| Austin | 70 | $140,000 |
| Tokyo | 70 | $140,000 |
| Chicago | 68 | $136,000 |
| Portland | 67 | $134,000 |
| Amsterdam | 65 | $130,000 |
| Remote US (avg) | 65 | $130,000 |
| Toronto | 65 | $130,000 |
| Atlanta | 62 | $124,000 |
| Berlin | 55 | $110,000 |
| Bengaluru | 25 | $50,000 |
What engineers should consider beyond cost of living
Raw cost of living is only half the picture. Before making a relocation decision, factor in these additional variables:
- State/country income tax. Texas, Washington, and Florida have no state income tax. California taxes top earners at 13.3%. This alone can swing your effective salary by 10-15%.
- Equity and stock compensation. If a significant portion of your comp is in RSUs, the vesting schedule and tax treatment varies dramatically by jurisdiction. In some countries (e.g., France), equity taxation is punitive compared to the US.
- Career trajectory. San Francisco and New York still offer the densest networks of tech companies. Relocating to a cheaper city may limit your future job options and serendipitous career opportunities.
- Healthcare costs. US healthcare is far more expensive than most international destinations. A $200K salary in SF with $1,500/month in insurance premiums is not the same as $140K in Berlin with public healthcare included.
- Remote work policies. If you can earn an SF salary while living in Austin or Denver, the cost-of-living comparison becomes a savings calculator. Look for remote-friendly companies on our job board.
Best cities for tech workers by purchasing power
When you combine typical tech salaries with cost of living, three tiers emerge:
Tier 1: High salary, high cost
San Francisco, New York, Seattle, and Boston. Salaries are the highest in absolute terms, but cost of living eats most of the difference. Best if you prioritize career density, networking, and having the most options.
Tier 2: Strong salary, moderate cost
Austin, Denver, Chicago, Portland, and Atlanta. Salaries are typically 80-90% of SF levels while costs are 62-72% of SF. This tier offers the best overall purchasing power for domestic US moves.
Tier 3: Remote with SF pay
The ultimate optimization. A remote role paying SF-level compensation while living in a Tier 2 city (or cheaper) gives you the best of both worlds. Many companies now offer location-adjusted pay, but some — particularly well-funded startups — still pay the same regardless of location.