Use online cost of living calculators

When you want to compare cost of living in different states, online cost of living calculators can help streamline the process.

I recommend: Try the cost of living calculator at CNNMoney.com. It's geared toward job seekers, but the results will be just as helpful to small business owners. For a cost of living international comparison, try an international cost of living calculator like the one available at SalaryExpert.

Utilize online information about the cost of living index and international cost of living index

To compare cost of living, international and national comparisons are sometimes helpful.

I recommend: Compare the cost of living index for select U.S. cities at Infoplease. For an international cost of living comparison, use an international cost of living index in addition to an international cost of living calculator. EuroCost International provides clients with international cost of living indices. The Economic Research Institute's Relocation Assessor software program allows small business owners to conduct cost of living comparisons. If you don't plan on using the software frequently, you might find the yearly subscription cost prohibitive.

Understand currency comparisons

Currency comparisons are constantly changing, and they're part of cost of living comparisons. That's why it's helpful to use online currency comparison tools.

I recommend: Expedia has a useful currency comparison tool. Certain consumer goods are also indicative of currency value. Economists have used the cost of the Apple iPod to determine currency value, and it has been termed the iPod index.