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The local purchasing power index is in relation to New York City, with NYC's index score being 100. Values above 100 suggest higher local purchasing power, and values below 100 signify lower local purchasing power.

The index is calculated as follows:

First, the cost of a weighted “basket” of common consumer goods and services, including rent, was estimated for both the target city and New York City. This basket reflects the typical expenses of a four-person household. The average net salary in each location is then divided by the cost of the corresponding basket to determine how many baskets can be purchased with the average income. Finally, the value for the target city is divided by the value for New York City, resulting in the Local Purchasing Power Index.

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