Our Methodology
We believe in complete transparency. Here's exactly how we calculate our cost of living indices and comparisons.
📥How We Collect Data
Step 1: Multi-Source Aggregation
We aggregate data from government statistics bureaus, crowdsourced platforms, real estate databases, and partner APIs. Using multiple sources helps us validate accuracy and identify outliers.
Step 2: Normalization
Raw prices are converted to USD using current exchange rates, then normalized to account for quality differences (e.g., apartment sizes, restaurant quality tiers).
Step 3: Validation
Our algorithms flag suspicious data points (e.g., sudden 50% price changes). These are manually reviewed before inclusion. We also cross-reference with local expat communities.
Step 4: Monthly Updates
All data is refreshed monthly to capture market changes. Each page shows its last update date so you always know how current the information is.
📊Cost Categories & Weights
We track 15+ individual cost items, grouped into 6 major categories. Each category is weighted based on typical household spending patterns.
Housing
35%- Rent (1BR & 3BR)
- City center vs suburbs
- Utilities
Food & Groceries
25%- Restaurant meals
- Grocery staples
- Coffee & beverages
Transportation
15%- Public transit
- Taxi fares
- Fuel costs
Healthcare
10%- Doctor visits
- Prescription drugs
- Insurance
Lifestyle
10%- Entertainment
- Fitness
- Clothing
Education
5%- Childcare
- International schools
- Tutoring
🔢Understanding Our Indices
All indices use New York City as the baseline (100). A score below 100 means cheaper than NYC; above 100 means more expensive.
Cost of Living Index
Our primary index measuring overall living costs. A score of 80 means 20% cheaper than NYC.
Formula
Weighted average of all categories
Baseline
New York City = 100
Rent Index
Focuses specifically on rental costs, often the largest expense for expats.
Formula
Average of housing costs
Baseline
New York City = 100
Groceries Index
Tracks the cost of a standard grocery basket across cities.
Formula
Average of food staples
Baseline
New York City = 100
Restaurant Index
Measures the cost of eating out, from casual to mid-range restaurants.
Formula
Average of dining costs
Baseline
New York City = 100
Purchasing Power Index
Shows how much you can actually afford given local wages and costs.
Formula
Local salary / Cost of Living
Baseline
New York City = 100
⚖️How We Calculate Comparisons
When comparing two cities, we calculate the percentage difference for each cost item, then present weighted averages by category.
// Example: Comparing rent in London vs New York
London 1BR rent: $2,400/month
NYC 1BR rent: $3,200/month
Difference: -25% (London is 25% cheaper)
For salary equivalence calculations, we use the overall cost of living index to determine what salary in City B would provide the same purchasing power as a given salary in City A.
⚠️Limitations & Caveats
Averages, Not Absolutes
Our data represents city-wide averages. Specific neighborhoods can vary significantly.
Lifestyle Dependent
Your actual costs depend on your lifestyle. A budget traveler and a luxury seeker will have very different expenses.
Currency Fluctuations
Exchange rates change daily. We use monthly averages, but short-term moves may see different rates.
Data Freshness
While we update monthly, rapid inflation or economic changes may temporarily affect accuracy.
Questions About Our Data?
We're committed to transparency. Check our data sources or reach out with questions.