Numbers and cost estimates

Calculating the London premium required:
 * calculate net wages: yearly wages for your job role in London - yearly wages for your job role in manchester /12 x 0.6 (marginal tax rate)


 * subtract London rental premium: your rent - the rent for an equivalent place in manchester (£250 to £400, depending how you live now)


 * subtract the London premium from your location based discretionary purchases eg. restaurant meals and drinks: your current spending on this category per month x 0.3

Example:
 * subtract the extra minutes per month economically wasted in congestion during commute: commute time taken in London per journey - commute time in manchester per journey x 2 x days per month commuting x how much you value that extra time per hour / 60

your job role pays 52.5k yearly in London but an equivalent job or company transfer only offers 45k in Manchester

(52500 - 45000) / 12 = £625 gross premium per month

7500 / 12 x 0.6 = £375 net salary premium per month after tax

375 - (600-300) = £75 net salary premium after tax + rent

75 - (300 x 0.3) = -£75 net salary premium after tax + rent + discretionary purchases

-£75 - (((40 - 25) x (2 x 20)) x (£10 / 60)) = -£175 net salary premium after tax + rent + discretionary + commute time per month

depending on how much your job pays, it may not make as much sense as you assumed to live in London.