What does a cost-of-living index of 107 mean?

It means Chicago costs about 7% more than the US national average, which is set at 100. A composite index combines housing, food, transport, utilities, and healthcare into one number weighted by typical household spending.

Why is Chicago's housing index higher than its composite?

Housing is the most expensive category relative to the national average in Chicago, pulling well above 100. Groceries and healthcare sit closer to average, which brings the composite back down to roughly 107.

How do I compare two cities with this tool?

Enter your current budget and your current city's index. The tool multiplies your budget by Chicago's index divided by your city's index to show the equivalent amount needed in Chicago to maintain the same standard of living.

Are these official government figures?

No. Cost-of-living indices are compiled by private cost surveys and vary between sources. The values here are representative planning figures, not official statistics, and should be treated as estimates.

Does the index include income tax?

Most cost-of-living indices exclude income tax and focus on the price of goods and services. Illinois has a flat state income tax, so factor that separately when comparing take-home pay across states.

Chicago Cost-of-Living Index

A cost-of-living index expresses local prices relative to a national baseline of 100. Chicago’s composite index sits around 107, meaning everyday life costs about 7% more than the typical US city. This tool breaks that figure into categories and converts any budget into its Chicago equivalent.

How it works

To find what your current budget is worth in Chicago, the tool scales by the ratio of the two indices:

chicago equivalent = current budget × (chicago index / current city index)

The composite index is a weighted blend of category indices:

Housing         ~120
Groceries       ~104
Transportation  ~110
Utilities       ~ 95
Healthcare      ~103
Composite       ~107  (spending-weighted)

Housing is the dominant driver above the national average, while utilities run slightly below it.

Example and tips

If you spend 4,000 dollars a month in a city at the national average (index 100), maintaining the same standard in Chicago needs about 4,280 dollars given the 107 composite. If your current city is pricier than Chicago, the equivalent will be lower. Remember the index excludes income tax, so add Illinois’s flat state tax when comparing real take-home spending power.