Budgeting How to Calculate the Costs of Relocation By Rebecca Lake Rebecca Lake Facebook Twitter Website Rebecca Lake has over a decade of experience researching and writing hundreds of articles on retirement, investing, budgeting, banking, loans, and more. She has been published by well-known finance brands including SoFi, Forbes, Chime, CreditCards.com, Investopedia, SmartAsset, Nerdwallet, Credit Sesame, LendingTree, and more. learn about our editorial policies Updated on December 28, 2021 Reviewed by Somer G. Anderson Reviewed by Somer G. Anderson Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in the accounting and finance industries for more than 20 years. Her expertise covers a wide range of accounting, corporate finance, taxes, lending, and personal finance areas. learn about our financial review board Fact checked by Hans Jasperson Fact checked by Hans Jasperson Hans Jasperson has over a decade of experience in public policy research, with an emphasis on workforce development, education, and economic justice. His research has been shared with members of the U.S. Congress, federal agencies, and policymakers in several states. learn about our editorial policies Share Tweet Pin Email Photo: Westend61/Getty Images Making a move may be necessary if you want to take the next step up the career ladder. Relocation can also be appealing if you're ready to make a fresh start personally or need a change of scene. Before you hire movers and start house or apartment hunting, it's important to take time to consider relocation costs. Here's how to make sure you're financially prepared for a move. Start With a Relocation Costs Budget A budget is essential for managing your day-to-day expenses. And you can apply the same concept when a move is in the cards. Start by dividing relocation costs into two broad categories: all the costs associated with moving, and the cost of living once you've settled into your new place. Costs of Moving This category covers all of the expenses you may need to pay to go from Point A to Point B. They may include: Boxes and packing materials Moving van rental if you plan to move yourself Hiring professional movers Utility deposits if you will be renting your new place Remaining utility balances at your old home Storage unit rental Professional cleaning services if you're moving out of a rental Driving expenses Airfare if relocating long-distance means flying versus driving Shipping fees (including fees for transporting pets and car) Moving insurance Security deposit for your new apartment if you're renting Temporary short-term housing if you're planning to buy If you want to buy versus rent, you'll also need to add home-buying costs into your relocation costs. Those include things like your down payment, earnest money, and closing costs. So, how much should you budget for the costs of moving? The amount can vary based on the distance you're moving, how much stuff you have to move, and whether you want to go pro with a move or choose a DIY approach. According to HomeAdvisor, the cost of moving nationwide ranges from $200 at the low end, to over $10,000 at the high end. The average cost as of May 2021 was $1,392. Comparing individual moving costs and services can help you fine-tune your budget further. Costs of Living After You Relocate The other side of moving is to figure out what relocation costs after the fact. The expenses you should be most concerned with here include: Mortgage or rent payment for your new home Monthly utility costs Transportation New furniture and home decor Repairs and ongoing maintenance, if you're buying a home Groceries Car, renter's, and/or homeowner's insurance Property taxes These are the most essential expenses to consider when relocating, but there are also other costs to consider. Healthcare, for example, is something to think about. You may be young and healthy, but if you get sick or injured, you need to know how much a doctor visit would cost if you're waiting for your insurance to kick in, or you haven't met your deductible for the year. Beyond that, think about things like dining out, entertainment, and hobbies. In a bigger city, going to a restaurant or a movie may be more expensive, compared to where you're living now. You need to consider carefully how your budget after a move may increase or decrease, and how your new income will accommodate your spending. If you're moving to an area with a higher cost of living, that may mean having to cut back on some of your non-essentials. A tighter budget could also curtail how often you're able to travel back to your old hometown. That comes into play if you're leaving family or close friends behind, and you'd like to plan regular visits. Calculating Relocation Return on Investment As you assess relocation costs, remember to think about the bigger picture. Specifically, ask yourself what the return on investment is likely to be, both financially and emotionally, by moving to a new city. Evaluate what the job market is if you're looking for a job and don't have an offer yet. Moving to a city with a larger population doesn't necessarily guarantee that job openings will be plentiful. Even if they are, you might be up against stiff competition if hundreds or even thousands of other job seekers are relocating for the same reason. Think carefully about salary expectations as well. Looking at the median and entry-level salaries for workers in your industry in a given city can give you a better idea of where you're likely to fall on the pay scale once you get hired. Plugging your projected income into a cost-of-living calculator for the city you're interested in can help determine how affordable it truly is. Finally, look past the financial considerations, and think about the overall quality of life a city has to offer. Relocating—even if it means getting ahead on the job—can be extremely difficult emotionally if your quality of life suffers. While they may not impact your relocation-costs budget, it's important to know whther there are other people your age to create connections. Whether your new city offers the kind of hobbies and lifestyle you're seeking, can also play a big part in your decision-making. Consider your new life as a whole–job, social life, activities, and even the weather, are cost factors when deciding whether, where, and when to move. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. HomeAdvisor. "How Much Does It Cost to Move?"