Can I Afford This?

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Can I afford London on £40,000?

Updated 2026 · 2024/25 UK tax rates · Drag the slider to your salary

Your annual salary£40,000
£20k£120k

Monthly take-home

£2,693

Total essentials

£2,743

Left each month

£-50

Affordability verdict — Just me

Very stretched

London is expensive relative to £40k. Consider a lower-cost city nearby, or look for a role paying 20–30% more before committing to the move.

35/ 100

Monthly breakdown — London

1-bed flat, single income. Rent is a 71% share of your take-home pay.

Rent
£1,900
Council tax
£183

Claim 25% single-person discount — it is not automatic.

Gas & electricity
£92

Ofgem cap estimate for a 1-bed property. Actual varies by insulation and usage.

Broadband
£35

Standard fibre (50–100 Mbps). Sky, BT, Virgin or local provider.

Water & sewerage
£38

Metered or rateable value charge depending on property.

Groceries
£295

1 adult, mid-range supermarket shopping.

Transport
£200

Monthly Travelcard Zones 1–3. Bus-only commuters pay ~£105.

Total essentials
£2,743/mo

Costs sourced from GOV.UK, Ofgem, Water UK and ONS 2025/26. Individual costs vary by property, usage and lifestyle.

How does London compare?

Same salary and household — different cities.

How the affordability score works

The score (0–99) weighs three factors using your actual household costs:

Rent burden: Rent as a % of monthly take-home. Under 30% is healthy; above 40% is a strain.
Essentials headroom: What remains after all essentials including council tax, energy, water, groceries and transport. Negative means the salary does not cover basics.
Savings potential: Whether a meaningful monthly surplus is achievable after all essential household spending.

Costs are household-specific estimates from national data sources. Individual circumstances vary.

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⚠️ Figures are estimates based on 2024/25 UK tax rates and 2025/26 cost data. Not financial advice.