Chicago vs Madison

Category-by-Category Breakdown

Index values shown. National average = 100. Lower is cheaper.

💰 Salary Equivalence

To maintain the same standard of living:

See exact take-home pay: Illinois salaries · Wisconsin salaries

Living in Chicago vs Madison

Housing is typically the biggest factor in any cost-of-living comparison. Chicago has a housing index of 112 while Madison sits at 115 (national average = 100). The median home in Chicago costs $310,000 compared to $340,000 in Madison, a difference of $30,000. Monthly rent follows a similar pattern: $1,700 in Chicago versus $1,400 in Madison.

Groceries and everyday expenses show a narrower gap: Chicago scores 104 while Madison scores 101. Both cities are close to the national average for grocery costs.

Healthcare costs in Chicago (101) are lower than Madison (105). Both are close to the national average.

Median household income in Chicago is $62,097 compared to $67,565 in Madison. When adjusted for cost of living, purchasing power is similar in both cities.

Relocating: Chicago vs Madison

If you are considering a move between Chicago (index: 107) and Madison (index: 106), the 1% cost difference has real implications for your budget. Madison is the more affordable option, but the right choice depends on your income, career opportunities, and lifestyle priorities.

Housing budget reality: Using the 28% rule (spending no more than 28% of gross income on housing), the median household in Chicago can afford $1,449/month, while the median household in Madison can afford $1,577/month. With median homes at $310,000 in Chicago versus $340,000 in Madison, both cities offer reasonable homeownership opportunities at median income.

Renting vs buying: At $1,700/month in Chicago and $1,400/month in Madison, renters face similar costs in both cities. The rent-to-own ratio in each city determines whether renting or buying offers better value for your situation.

Income adjustment: A $75,000 salary goes about equally far in both cities. Before accepting a job in either city, use the salary equivalence data above to understand what you would need to earn to maintain your current standard of living.

Reading These Numbers: Chicago (107) vs Madison (106)

The cost of living index uses 100 as the national average. Chicago at 107 is 7% above the US average, while Madison at 106 is 6% above average. Both cities are close to the national average in overall costs.

Chicago and Madison land within 1 points of each other on the composite index (107 vs 106), so the overall cost picture is similar. Transportation shows the widest single-category margin at 116 versus 103, making it the area where residents will feel the most day-to-day price difference between Chicago and Madison. Housing costs are comparable between the two metros, with Chicago at 112 and Madison at 115 on the housing sub-index and median home prices of $310,000 and $340,000 respectively. Neither city is cheaper across the board: Chicago has an edge in housing and healthcare, while Madison is more affordable for groceries and utilities. Your actual savings depend on which categories consume the biggest share of your personal budget.

For renters: With median rents of $1,700/month in Chicago and $1,400/month in Madison, the annual rent difference is approximately $3,600. Over a 5-year period, that compounds to $18,000 in savings by choosing the more affordable city.

For homebuyers: The $30,000 difference in median home prices between Chicago and Madison translates to roughly $1,800 per month in mortgage payments at current rates. Factor this into your budget alongside property taxes and insurance, which also vary by location.

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