Cost of living and relocation
Cost of Living Index Explained: What 73 and 113 Mean
A cost-of-living (price level) index compares the price of a defined basket in one place with a reference set to 100. With the EU average at 100, Poland’s 73.3 means its household consumption basket costs 26.7% less than the EU average, and Austria’s 113 means 13% more. To compare two places, divide one index by the other, then replace the broad estimate with your own rent, household and income figures.
By DmytroUpdated 7 min read
Short answer
- With EU = 100, Poland at 73.3 is 26.7% below the EU average, Portugal at 86.6 is 13.4% below and Austria at 113 is 13% above (Eurostat, reference year 2025).
- Compare two places by dividing: 113 ÷ 73.3 ≈ 1.54, so Austria’s basket costs about 54% more than Poland’s. The 39.7-point gap is not the percentage.
- Direction matters: going from Austria to Poland, 73.3 ÷ 113 ≈ 0.65, so Poland is about 35% cheaper than Austria.
- An index compares price levels between places. Inflation is the change over time, and neither one is your bank’s exchange rate or your rent.
Read the baseline before the number
An index is a relative measure, not an amount of money.
Check the source, the reference year, the geography, the basket and the base. Eurostat’s price level indices compare national price levels for household consumption with the EU average set at 100; they are built from purchasing power parities and market exchange rates. The cost-of-living calculator on this site uses these Eurostat country values for reference year 2025.
On that basis, Poland at 73.3 is 26.7% below the EU average, Portugal at 86.6 is 13.4% below and Austria at 113.0 is 13% above. None of these numbers tells you how many euros you need a month. Values built on different bases, such as EU = 100 on one site and New York = 100 on another, need a common basis before you compare them.
Use a ratio and state the direction
Austria compared with Poland is a different percentage from Poland compared with Austria.
Divide the destination index by the origin index. Austria compared with Poland: 113 ÷ 73.3 ≈ 1.542, so Austria’s basket is about 54.2% more expensive than Poland’s; the indices differ by 39.7 points, which is a different number. In the other direction, 73.3 ÷ 113 ≈ 0.649, so Poland is about 35.1% cheaper than Austria.
Example: Portugal compared with Poland gives 86.6 ÷ 73.3 ≈ 1.181. Spending of EUR 800 on a comparable basket in Poland therefore becomes a rough estimate of EUR 945 in Portugal, before you check your own purchases against local prices.
| Comparison | Calculation | Meaning |
|---|---|---|
| Poland → Portugal | 86.6 / 73.3 ≈ 1.181 | About 18.1% more expensive |
| Poland → Austria | 113 / 73.3 ≈ 1.542 | About 54.2% more expensive |
| Austria → Poland | 73.3 / 113 ≈ 0.649 | About 35.1% cheaper |
Price level, inflation and exchange rates
Each one answers a different question.
A price level comparison asks how prices compare between places in a given period. Inflation asks how prices change over time within one economy. A change in a country’s relative index can come from exchange rates, prices in other countries or changes in method as well as from its own inflation.
A purchasing-power measure is also different from the exchange rate your bank offers. For a cash budget, convert your real expenses and take-home income into one currency at a dated planning rate, and count payment and conversion costs separately.
Replace the national average where your life differs
Housing and your household can outweigh the index.
A national index gives no city rent, no price for a short-term furnished lease and no neighborhood prices. Its basket also weights categories differently from any one household: someone paying school fees or traveling often spends differently from a single long-term renter.
Use a category index only when its definition and base match. For your three largest expenses, such as rent and mandatory charges, utilities, transport, food or healthcare, get current local prices. Add moving costs and refundable deposits separately; a deposit ties up cash even when you get it back.
Checklist
- Match source, basket, base, geography and reference year before comparing indices.
- Use real rent listings for the intended city and lease length.
- Keep fixed debt, savings targets and tax payments outside a consumer-price ratio.
- Record household size, large special expenses and which figures are estimates.
Example: set the basket boundary and a rent ceiling
Count each cost once, then work out the most rent your budget allows.
The EUR 800 to EUR 945 basket above excludes rent and utilities, because they are added separately in the budget below; otherwise the same cost would appear twice. Debts, savings targets and a separately calculated tax bill stay outside the multiplier as well.
Example: in the EUR 2,315 budget below, the costs other than the EUR 900 rent add up to EUR 1,415. With an income of EUR 2,600 and a chosen minimum margin of EUR 200, the maximum rent is EUR 2,600 − EUR 1,415 − EUR 200 = EUR 985. That is your personal ceiling: a listing above it needs another confirmed change, such as lower costs or higher income.
Example: turn the index into a monthly budget
Affordability depends on your income and obligations as well as the index.
Start from your existing budget by category, apply the ratio only where you have no better evidence and replace the largest estimates with local prices. Enter the take-home income you actually expect; a national average wage divided by 12 may not match your household, tax position or pay schedule.
Example: EUR 945 everyday spending + EUR 900 rent + EUR 120 utilities + EUR 150 other obligations + EUR 200 savings = EUR 2,315 a month. Against EUR 2,600 take-home income, the margin is EUR 285. A EUR 200 rise in rent cuts it to EUR 85, and a further EUR 150 drop in income turns it into a EUR 65 shortfall.
In the cost-of-living calculator, use one currency throughout and read the dataset notes. City names in the calculator label your scenario; the price ratios come from country data. Save a base and an adverse scenario, and plan one-off moving costs and an accessible emergency fund outside the monthly budget.
FAQ
What does a cost of living index of 100 mean?
It is the reference point. In Eurostat’s price level indices, 100 is the EU average, so 113 means 13% above it and 73.3 means 26.7% below it.
Is an index of 80 a monthly budget of EUR 80?
No. With a reference of 100, 80 means prices for the measured basket are 20% below the reference. To estimate money, apply the ratio to a real spending amount for a comparable basket.
How do I compare two countries’ indices?
Divide the destination index by the origin index. From Poland (73.3) to Austria (113), 113 ÷ 73.3 ≈ 1.54, so about 54% more expensive; the reverse, 73.3 ÷ 113 ≈ 0.65, is about 35% cheaper.
Can I compare indices from different websites directly?
Only when their geography, reference period, basket and base match. Similar-looking numbers can measure different things.
Does a lower index mean I can save more?
That depends on your income and costs. Lower prices often come with lower local pay, and a national average can hide expensive housing in the city you choose, so compare take-home income with your real rent and household costs.
Sources
- Purchasing power parities: information on data — Eurostat
- Price level indices (prc_ppp_ind_1) — Eurostat
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