Alex Staff Agency

How the country's rating is calculated?


Some countries are more suitable for moving, some are less suitable. In this article, we will explain how we calculate the country ranking for our job descriptions.

Our method is based on the rating of the Numbeo it's the authoritative project that collects data on various aspects of life across different countries. We use 3 indicators for our calculations, such as immigration rating, quality of life, and cost of living.

The rating is indicated as a percentage and the higher it gets, the better the quality of life in the country. The standard of living shows how economically and socially prosperous a country is. The cost of living displays how expensive it is to live in a country.

The last two parameters are calculated on the indexes' base, which are rates of variation in quantitative data. For example, if housing prices change over the year, then the cost-of-living index also changes.

Further, we go into detail about the calculations the meaning of each value.

Immigration rating

We use the quality of life index on Numbeo how comfortable a country is to move to. This is the country's overall quality-of-life assessment. It takes into account:

  • purchasing power (including rent) index (the higher it is, the better),
  • pollution index (the lower the better),
  • property price to income ratios (the lower the better),
  • cost of living index (the lower the better),
  • safety index (the higher the better),
  • health index (the higher the better),
  • traffic index (the lower the better),
  • climate index (the higher the better)

The calculation formula is written in Java:

index.main = Math.max(0, 100 + purchasingPowerInclRentIndex / 2.5 - (housePriceToIncomeRatio * 1.0) - costOfLivingIndex / 10 + safetyIndex / 2.0 + healthIndex / 2.5 - trafficTimeIndex / 2.0 - pollutionIndex * 2.0 / 3.0 + climateIndex / 3.0);

To calculate the immigration rating of any country as a percentage, we divide the country's quality of life index by the maximum. For example, according to 2021, the Czech Republic's index is 156.33, and the maximum index is 190.82 (Switzerland). 156.33 / 190.82 = 0.82, so the rating of the Czech Republic on our website will be 82%.

You can read more about each of the indexes here.

Quality of life

The quality of life is quite similar to the quality index but doesn't include the pollution and the climate appeal of the country. We calculate the indicator as a percentage and convert it to a 10-digit scale.

We add the values of 6 indices:

  • purchasing power
  • cost of living
  • safety
  • the ratio of quality and price of real estate
  • health care
  • traffic time

Next, we divide by the sum of the same 6 indicators for Switzerland (country number one in 2021), and we get the indicator as a percentage. For example, let's calculate the Czech Republic index:

The sum of the indices: 56.40 + 74.69 + 75.37 + 49.18 + 15.46 + 29.72 = 300.82

The sum of the indices for Switzerland: 110.96 + 78.85 + 74.47 + 131.75 + 8.42 + 28.73 = 433.18

300.82 / 433.18 = 0.69. We got 69% now, when we post a vacancy, we will indicate the standard of living in the Czech Republic at 7 points.

You can view the 2021 country rankings and all indices here.

Сost of living

In the overall Numbeo ranking, the cost of living index is relative to New York. This means that every index in New York must be 100 percent. For example, if another city has a rent index of 120, that means that city's rents are on average 20% more expensive than in New York. If a city has a rents index of 70, that means that rents are, on average, 30% cheaper in that city than in New York.

The formula now includes several indicators:

  • cost of living index (excluding rent) a relative measure of prices for consumer goods, including food, restaurants, transportation, and utilities. It doesn't include living expenses (rent or mortgage).
  • rent index an estimate of apartment rentals in the city compared to New York.
  • grocery index an estimate of food prices in the city compared to New York. To calculate this section, Numbeo uses data from the Markets section for each city.
  • restaurant index the price comparison of food and drinks in restaurants and bars compared to New York.
  • cost of living index including rent an estimate of the prices of consumer goods, including rent, compared to New York.

Local purchasing power refers to the relative purchasing power to purchase goods and services in any city for the average wage in that city. If the internal purchasing power is 40, it means that the residents of this city with the average salary can afford to buy about 60% fewer goods and services than the New Yorkers with the average salary.

Data for calculations is collected manually and added to the site 2 times a year. Experts use the data on the average income in the country in a family of 4 people and their average spending for calculation.

More information about calculating the index and the formula can be found here.

The calculation for your city

To calculate how much it will cost to live in a new city after relocation, you can use a calculator. You need to type where you live now, where you are moving and how much you are spending. Then the site will show you an amount equivalent to yours in the new city. For example, you live in Moscow and spend 1000 euros a month. This amount is comparable to 1027 euros in Prague.

The site will show data on the comparison of prices in Moscow and Prague for basic products, education for children, fitness, rent.

Also, it is possible to estimate the level of expenses in the moving city based on your usual expenses using Numbeo. You enter data on the number of family members, how often you eat in restaurants, what kind of transport you prefer, and more and the program will calculate how much money you will need, for example, in Prague.

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