Cost of Living Index
✓ Last verified 14 Sep 2026
The short version
A cost of living index compares how expensive it is to maintain a given standard of living across different cities - useful context when comparing a job offer or relocation between, say, Mumbai and a smaller city.
A salary that looks like a big jump on paper can mean less real improvement - or even a step down - once rent, commute, and everyday costs in a more expensive city are accounted for. A cost of living index gives a relative comparison point between cities, most commonly showing metros like Mumbai, Bengaluru, and Delhi NCR meaningfully more expensive than most tier-2 cities, particularly on housing. Before accepting a relocation or comparing offers across cities, adjusting the headline salary difference by the real cost-of-living gap gives a far more honest picture than comparing the numbers alone.
Want this worked out for your own numbers?