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What formula is used to compute cost differentials?

April 26, 2017compute COST differentials Formula Used

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What formula is used to compute cost differentials?

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10 Posted

The simple shorthand formula for computing relative cost differential is: Index of the city one is going TO minus the Index of the city one is coming FROM; divided by the Index of the city one is coming FROM; multiplied by 100. This will give you a percentage differential that can be used to compute the after-taxes income needed in the target city to maintain your standard of living where you are now.