What is Cost of Living?

The cost of living is the amount of money necessary to maintain a certain level of living in a specific location over a particular period of time. As a statistical index, this measurement is often used as a tool to compare the financial requirements of living in a certain location city compared to your current place of residence, taking into consideration basic expenses, such as basic services, housing, food, taxes, and healthcare. If you are considering moving to a new city, state, or country, this information would be helpful in providing you with practical insights into the monetary demands of that location.

The cost of living index features the percentage variance in the cost of living between two or more locations. As an index, the cost of living of the primary location is always fixed at 100, while the values for the location/s being compared to it may be higher or lower than 100. If you are currently living in Fort Collins, Colorado and are planning to relocate to Denver, the cost of living index for Fort Collins would always be 100, while the figures for Denver would vary, depending on whether the basic expenses in this city are more expensive or cheaper compared to Fort Collins.