What does a cost-of-living index of 103 mean?

An index of 103 means Baltimore is about 3% more expensive than the US national average, which is pegged at 100. A dollar in Baltimore buys roughly what 97 cents buys nationally.

Which category drives Baltimore's index above 100?

Housing and utilities are the main upward pressure on Baltimore's composite index, while groceries and healthcare sit closer to the national average. Transportation is moderately above average.

How do I compare my salary to another city?

Divide your salary by the destination city's index and multiply by 100 to get national-average dollars, then scale by the other city's index. This tool does the national-average step for you.

Is the index the same as inflation?

No. A cost-of-living index compares one place to another at a single point in time. Inflation measures how prices change over time. The index here is a spatial comparison, not a time series.

Where does the composite index come from?

The composite blends weighted category indices — housing, groceries, transportation, utilities, and healthcare — using typical household spending shares. The result is a single number relative to the US average of 100.

Baltimore Cost-of-Living Index

What this tool does

A cost-of-living index rebases everyday expenses against a national benchmark set to 100. Baltimore’s composite index of 103 means the city is about 3% costlier than the typical US metro. This tool shows the category breakdown and converts any salary into national-average purchasing power so you can compare offers fairly.

How it works

Each category carries an index value relative to the US average of 100. The composite is a weighted blend:

composite = sum(category_index * weight)

with typical household weights of roughly housing 33%, transportation 17%, groceries 13%, utilities 8%, healthcare 7%, and other 22%. To convert a salary into national-average dollars:

national_equivalent = salary * (100 / composite_index)

A salary that “feels” smaller in Baltimore is simply being measured against a higher cost basis.

Example and notes

With a composite index of 103, a $70,000 Baltimore salary is worth 70,000 * (100 / 103) = $67,961 in national-average terms — a gap of about $2,039 in lost purchasing power versus an average-cost city. The reverse also holds: to match a $70,000 lifestyle elsewhere, you would need slightly more in Baltimore. Indices are estimates that shift with housing markets and energy prices, so treat them as a directional guide rather than an exact budget.