Have you ever dreamed of moving abroad but aren't sure what salary you'd need to live there comfortably? Or maybe you've already received a job offer from another country and don't know if it's a good one? (And Reddit only makes you more confused because some people say it's more than enough while others say you'll scrape by on that salary.)
These are common questions and challenges for anyone looking to move to a new country.
Calculating the ideal salary in another country isn't just about converting your current pay into a different currency. It's crucial to understand the cost of living and other expenses you might face.
That’s where Numbeo comes in. Numbeo is a powerful tool that helps you figure out what you should be earning by comparing the cost of living data from around the world. Trust me, I've moved abroad three times since 2017, and I honestly can't imagine making decisions about relocating abroad without this tool.
So, in this post, I'll show you how to use Numbeo to calculate the salary you need to make your move abroad worthwhile and to live comfortably in a new country.
What Is Numbeo?
When you're planning to make a big move abroad, understanding the cost of living in your destination country is essential. This is where Numbeo steps in as a game-changer.
Numbeo is a powerful online platform that offers detailed information on the cost of living around the world. Think of it as a giant crowdsourced database. People from all over the world contribute information about their expenses, which Numbeo then compiles and organizes.
Why Trust Numbeo?
Now, you might wonder, "Is the data reliable?"
Absolutely. Numbeo uses rigorous methods to ensure accuracy. It verifies data through various algorithms and user feedback. Plus, its vast user base means the data is often more up-to-date than government statistics.
What information can you find on Numbeo?
Cost of living index: This index compares the cost of living between different cities and countries. It includes everything from groceries to rent.
Property prices: Whether you're looking to rent or buy, you can find average prices for properties in various locations.
Quality of life index: This index measures overall well-being, factoring in safety, healthcare, traffic, pollution, and other essential elements.
plus, so much more!
How can you use Numbeo when moving abroad?
Imagine you're moving from Madrid to Berlin. You can use Numbeo to see how much you'll spend on rent, groceries, and other essentials in Berlin compared to Madrid. This helps you calculate the salary with Numbeo to ensure you can maintain your lifestyle.
Basically, Numbeo is like a personal financial advisor who specializes in the global cost of living. It's a must-have tool for anyone looking to make their dream of working abroad a reality.
How Numbeo Can Help You Calculate Salary When Moving Abroad
Numbeo is a powerful tool for salary calculation, cost of living comparison, and figuring out what kind of lifestyle you can afford in your new location.
Here’s how Numbeo can make the process easier.
Cost of Living Comparison
When you’re moving abroad, one of the biggest questions is how much you’ll need to earn to live comfortably. Numbeo’s cost of living comparison feature lets you see exactly what day-to-day expenses will look like in your new country.
You can compare the costs of housing, food, transportation, utilities, and more between your current city and where you’re headed.
Curious about how much a cappuccino costs in Amsterdam vs. Lisbon? Or how rent compares between New York and Berlin? Numbeo’s got you covered, helping you set realistic expectations for your budget.
Quality of Life Data
Moving abroad isn’t just about finances. Quality of life matters too. Numbeo provides indices that cover key factors like safety, healthcare, pollution, and traffic.
Here’s what each index can tell you:
Crime Index: Know how safe your potential new city is.
Health Care Index: Understand the quality and accessibility of healthcare.
Pollution Index: Get a sense of the air quality and environmental conditions.
Traffic Index: Plan your commute by checking the local traffic situation.
These insights can help you decide if a city aligns with the lifestyle you’re looking for.
Customizable Data
Numbeo lets you zero in on the exact cities you’re considering, so you can see how your current salary stacks up against local salaries in a new country. Just plug in your current income, and Numbeo will break down how much you’d need to earn in your new city to keep the same lifestyle, factoring in those all-important cost-of-living differences. It’s a straightforward way to get a real sense of what salary would actually work for you abroad.
How to Calculate Ideal Salary in Another Country Using Numbeo
Wondering if that job offer you just got is enough to support your lifestyle in a new country? Or what salary should you ask for in salary negotiations? Numbeo’s Cost of Living Comparison tool can help you get some clarity. Let’s go through an example to show you exactly how to use this tool to calculate your ideal salary.
In this case, we'll imagine you're moving from Gothenburg, Sweden to London, UK. (Just follow the same steps with your own cities to get an accurate estimate for your move.) We want to figure out how much you’d need in London to keep the same standard of living, taking cost-of-living differences into account. Okay, let's get started.
Step 1: Start with your net salary.
Why net salary? Because it’s what actually hits your bank account every month.
Gross salary varies widely due to taxes, deductions, and other factors that can differ significantly between countries. Using net salary gives you a clear comparison of actual take-home pay. So for our calculation, we’ll use 36,000 SEK net in Gothenburg. (No need to enter it just yet—just note it down, and we’ll use the net salary in a few seconds.)
Step 2: Use Numbeo’s Cost of Living Comparison Tool.
On Numbeo’s homepage, navigate to the Cost of Living Comparison tool. The tool looks like this:
From there, do the following:
1. Enter your current city.
For example, we'll type in Gothenburg, Sweden in the “Current city” box.
2. Enter the comparison city. In the “Comparison city” box, we'll type London, United Kingdom.
3. Click “Compare."
Step 3: Customize Your Net Salary.
When you reach the results screen, you'll get a comparison between the two cities based on the default data. It’s important to adjust the monthly net salary to match your actual earnings—in this case, 36,000 SEK.
Here's how to do it:
1. Select "change the amount in this calculation."
2: Add your net salary to the pop-up screen and press submit.
Here, we'll add 36,000 SEK, which is the net salary amount we're using as an example.
3: Get the salary comparison between the two cities.
And there you have it!
Follow these steps, and Numbeo will show you exactly what net salary you’ll need in another country to keep the same lifestyle, factoring in all those cost-of-living differences between where you are now and where you’re headed. Want to take it a step further? To be absolutely sure your target salary abroad aligns with your lifestyle, take a look at the bottom-up salary calculation technique.
Now, let's cover some additional questions and tips for salary calculation.
Why You Should First Compare Net Salaries When Moving Abroad and Convert Later
Always start with net salary when comparing incomes across countries. Why? Because net salary is what actually lands in your bank account after taxes, insurance, and deductions—which can vary a lot between countries.
Comparing net salaries gives you a true picture of your take-home pay and what you’ll realistically have for day-to-day expenses.
Once you know the net salary you’ll need in your new country, use a gross-to-net calculator specific to that country to work backward if needed. It’ll give you a better idea of the gross salary you should aim for in negotiations.
Should You Calculate and Negotiate Monthly Salary or Salary per Annum?
If you’re moving to a country where people tend to negotiate salary on a monthly basis (like many European countries), it’s best to calculate and discuss your salary monthly. But if you’re moving to a place like the US, where salary is almost always negotiated annually, stick with an annual figure.
Matching local norms can make negotiations smoother, and it helps to avoid confusion around payment expectations.
Pro tip: Even if you’re negotiating an annual salary, calculate what it looks like monthly so you’re clear on your budgeting. It’ll help you spot any gaps before you accept an offer.
Should You Negotiate Gross or Net Salary?
If possible, go for a net salary when negotiating. Gross salary can be misleading, especially in countries with high taxes or social security contributions. Net salary is what you’ll actually live on, so getting that locked in means fewer surprises.
However, some employers may only discuss gross. If that’s the case, be sure to use a reliable net-to-gross calculator for your new country so you have a realistic idea of your take-home pay before you accept an offer.
3 Common Mistakes People Make When Calculating How Much They Should Earn in Another Country
Numbeo makes salary calculation 10x easier. But estimating the salary you’ll need for a comfortable life in a new country goes beyond this tool.
Here are some of the biggest mistakes people make when figuring out the cost of living and salary requirements before moving abroad and tips on avoiding them:
Mistake #1: Not accounting for lifestyle changes.
Moving to a new country often means a shift in lifestyle, which can impact your spending habits. If you’re used to a car-dependent lifestyle but plan to rely on public transportation in your new city, or if you think you’ll be dining out more to experience local cuisine, these changes can significantly alter your budget.
Consider lifestyle adjustments: Think about how your lifestyle might change in the new location. Will you be spending more on transport, socializing, or certain types of food? Account for these shifts to get a realistic budget.
Research local costs for your new lifestyle: Look into the cost of things you’ll be doing more often—whether that’s public transit, weekend trips, or dining out. It’s easy to overlook these, but they can add up quickly.
Mistake #2: Underestimating Quality of Life Expenses
Many people focus on essential costs like housing and food but overlook other expenses that contribute to their quality of life. If you’re used to a certain standard of healthcare, fitness, or entertainment, these things might cost more (or less) in your new country.
Factor in healthcare quality and access: Healthcare costs vary widely, and if you’re moving to a country without a public healthcare system, insurance and out-of-pocket costs can be substantial.
Consider personal well-being costs: If you regularly go to the gym, get massages, or see a therapist, check local prices. Sometimes these services are significantly more expensive, and cutting them out may impact your quality of life.
Mistake #3: Overlooking Hidden Costs
When calculating your ideal salary abroad, it’s easy to focus on basics like rent and groceries. But hidden costs can sneak up on you, especially in a new location. Your expat package might cover some, but others could fall on you. Overlooking these can leave you tight on cash, even if the salary looks solid on paper.
Look out for:
Taxes: Different countries have different tax rates and structures, which can eat into your take-home pay more than you realize.
Insurance: Health insurance, car insurance, and other types of insurance can vary widely in price. Be sure to factor these in.
Local fees: Extra charges for things like garbage collection, council tax, local transit, and even bank fees can come as a surprise.
Settling-in costs: Initial expenses like temporary housing, buying new furniture, and setting up utilities can hit your budget hard.
Look beyond basic cost-of-living data and dig into expat forums and local websites or talk to people already living there. It’s the best way to understand all the hidden costs you might face.
Plus, add a buffer. Budget a little extra each month for unexpected costs. It’s always better to have a financial cushion than to feel the squeeze later.
By keeping these mistakes in mind, you can create a much more accurate estimate of the salary you’ll need to thrive in your new country—without any nasty surprises.
TL;DR: How to Calculate Your Ideal Salary in Another Country Using Numbeo
Planning a move abroad? Here’s how to use Numbeo to make sure your new salary in another country keeps you comfortable:
Start with net salary: Always look at net salary first—this is what actually hits your bank account after deductions. Use Numbeo to see what net amount you’ll need in your new city. Once you know the net, convert it to gross if needed for negotiating.
Account for lifestyle changes: Moving often comes with a shift in spending habits. Use Numbeo’s cost of living data to adjust for any changes, like relying on public transit more, trying out local dining spots, or spending on activities unique to your new city.
Don’t overlook hidden costs: Numbeo is powerful, but it’s always smart to research extra local expenses like taxes, insurance, and any settling-in fees. These hidden costs can add up quickly, and they’re worth factoring into your budget.
Follow these tips, and Numbeo will help you land on a salary that fits your lifestyle abroad. With the right planning, you’ll feel prepared and financially secure in your new home.
Matilda & Ana
Hi there! We're Matilda and Ana — the founders of MoreThanCareers, expats, international corporate recruiters, and HR professionals with 18+ years of combined HR experience. Since 2018, our career-building techniques, tools, and resources have helped over 500 coaching clients and 8,000 individuals worldwide land new, more fulfilling, higher-paying, and career-changing jobs.
Now it's your turn. And MoreThanCareers is here to help!