Cost of Living Calculator

Costs vary enormously by location. A single person in London typically needs £2,200–£3,500/month (including rent), while outside London a more modest lifestyle can cost £1,400–£2,200/month. The biggest variable is housing — London rents average £1,800+/month versus £700–£900 in many Northern cities. Food (£250–£400/person), energy (~£150), and transport (£80–£200) are the other major categories. Use this calculator to build a personalised budget based on your actual spending.

Because of income tax and National Insurance, you need to earn considerably more than your take-home needs. For the 2026/27 tax year: you pay no tax on the first £12,570 (personal allowance), 20% income tax on £12,571–£50,270, and 40% above that. Employee NIC is 8% on earnings between £12,570 and £50,270, then 2% above. As a rough rule, a basic-rate taxpayer needs to earn about £1.47 for every £1 of spending — this calculator does the precise maths for your situation.

Housing is the biggest driver of regional variation. Average rents range from ~£1,800+/month in London, ~£1,100 in the South East, ~£900 in the East of England, down to £600–£750 in the North East, Yorkshire, and Northern Ireland. Council tax also varies — Band D bills range from ~£1,300/year in some areas to over £2,400 in others. Food, energy, and broadband costs are broadly similar nationwide. Transport costs depend on whether you commute by car or public transport; a London monthly travel card can cost £200–£350 alone.

Housing is usually the largest lever — house-sharing, moving to a cheaper area, or remortgaging can save hundreds per month. For energy, switching tariff and improving insulation can cut bills significantly; the Ofgem price cap resets quarterly. On food, meal planning and switching to own-brand products can save 20–30% versus branded goods. For transport, consider a season ticket versus day returns, or whether remote working days reduce commuting costs. Review all subscriptions and insurance annually — loyalty rarely pays.

Yes — if you treat savings as a non-negotiable monthly expense (paying yourself first), include your savings target in this calculator. Financial advisers commonly suggest saving 10–20% of net income. If you include savings in your total, the gross salary figure shown already accounts for the tax you need to earn to fund that saving. Pension contributions are different — employer and personal pension payments reduce your taxable income, effectively giving you tax relief on pension saving.