Marion County · Indiana
Indianapolis cost of living (IN)
Price levels published by the Bureau of Economic Analysis for Indianapolis-Carmel-Greenwood, IN, with the national average set to 100 — so 108 means things cost 8% more here than the US average.
Quick answer
Indianapolis costs 4.3% below the national average — all-items price level 95.7, rank 66 of 94 covered metros. A $100,000 national-average salary needs to be $95,696 here. Utilities is the reason, at 86.4.
- All items
- 95.7US average = 100
- Housing
- 88.911.1% below the national average
- Goods
- 94.35.7% below the national average
- Other services
- 99.1in line with the national average
Price level by component
Where the difference actually comes from.
| Component | Index | vs US | What it covers |
|---|---|---|---|
| Goods | 94.3 | -5.7% | Groceries, fuel, clothing, durable purchases. |
| Housing | 88.9 | -11.1% | Rents and imputed rents — the biggest single swing factor. |
| Utilities | 86.4 | -13.6% | Electricity, gas, water and other household energy. |
| Other services | 99.1 | -0.9% | Healthcare, dining, repairs, personal services. |
Reading the Indianapolis price level
What the 95.7 figure actually means for a household here.
Indianapolis prices sit 4.3% below the US average — an all-items parity of 95.7, rank 66 of 94 covered metros. Moderately below average. The median covered metro reads 100.8.
Utilities drives it: 86.4, 13.6% below average. Other services pull the other way at 99.1. The spread between the cheapest and dearest component is 12.8 points, so the headline number hides real variation — a renter and an owner in Indianapolis do not face the same cost gap versus the rest of the country.
A $100,000 national-average salary needs to be $95,696 here to buy the same basket. Run it the other way: the $62,996 median household income in Indianapolis is worth $65,829 in national-average dollars, 16.2% below the $78,538 US median. Local pay does not cover the local price level.
Parities are published for Indianapolis-Carmel-Greenwood, IN as a whole. Neighbourhood prices inside that metro diverge widely, and BEA revises the series annually.
What your salary is worth in Indianapolis, IN
Enter a salary. We deflate it by the local price level (95.7 where 100 is the US average) and show what you would need to earn here to match the same pay somewhere average.
- Real value here
- $65,829
- Needed to match US average
- $60,285
- Monthly difference
- $-226
What a local paycheck is really worth
Nominal pay is only half the story.
$62,996 median household income in Indianapolis is worth $65,829 in national-average dollars. BEA calls that real income: income × 100 ÷ 95.7.
Frequently asked questions
Common questions about this area.
- Is Indianapolis expensive?
- No — 4.3% below the US average, rank 66 of 94 covered metros. utilities is the component furthest from average at 86.4.
- What salary do you need to live in Indianapolis, IN?
- $95,696 to match a $100,000 national-average salary. The local median household earns $62,996, worth $65,829 after adjusting for the 95.7 price level.
- Why is the cost of living low in Indianapolis?
- Utilities at 86.4 versus other services at 99.1. A 12.8-point spread between components means one category, not general inflation, sets the headline figure.
More Indianapolis data
Other Indianapolis datasets on this site.
- Indianapolis population and income
- Indianapolis sales tax rate
- Indianapolis property tax
- Indianapolis home values and rent
- Indianapolis crime rates
- Indianapolis public schools
- Indianapolis weather normals
- Indianapolis commute times
- Indianapolis jobs and wages
Statewide: Indiana cities · Indiana ZIP codes · Indiana sales tax · Indiana counties
2024 BEA Regional Price Parities, published for Indianapolis-Carmel-Greenwood, IN. Parities are metro-wide, so a single neighbourhood can sit well above or below these figures.