A cost of living calculator is a tool that helps individuals compare the expenses of living in different locations. It typically considers factors such as housing, food, transportation, healthcare, and taxes to provide an estimate of how much money is needed to maintain a certain lifestyle in various cities or regions. By inputting specific data, like income and current location, users can see how their financial situation might change if they move to a new area. This can be particularly useful for those considering a job relocation or planning to travel, as it helps them budget effectively for their needs.