Software Engineer · City comparison · 2026

London vs Cambridge

Cambridge wins on purchasing power. Cambridge software engineers have £456/month more disposable income after rent than their London counterparts.

London salary
£72,000
£4,360/mo take-home
Cambridge salary
£68,000
£4,166/mo take-home
Cambridge wins by
+£456
per month after rent
Winner on purchasing power
Cambridge

After paying rent, a software engineer in Cambridge retains £456/month more than in London — that's £5,472/year extra in purchasing power.

+£456
per month
London
View full breakdown →
Gross salary £72,000
Net monthly £4,360
Rent (1-bed) £2,150
Rent-to-income 49% — High pressure
After rent £2,210
Cambridge
View full breakdown →
Gross salary £68,000
Net monthly £4,166
Rent (1-bed) £1,500
Rent-to-income 36% — Stretched
After rent £2,666

London vs Cambridge: what the £456/month gap means for a software engineer

On paper, London software engineer roles pay £4,000/year more than Cambridge. But take-home after tax and National Insurance tells a different story — London workers keep £4,360/month versus £4,166/month in Cambridge.

The bigger picture is after rent. Average London rent runs £2,150/month versus £1,500/month in Cambridge. Once housing costs are factored in, Cambridge workers have £2,666/month disposable income versus £2,210/month in London — that is £5,472/year in real spending power.

Cambridge's rent-to-income ratio of 36% compares favourably to London's 49%.

For software engineers prioritising financial freedom, Cambridge delivers significantly more disposable income despite lower gross pay.

Monthly cost comparison

All figures monthly · 2025/26

Category London Cambridge Delta
Rent (1-bed median) £2,150 £1,500 -30%
Transport £185 £75 -59%
Council tax £165 £155 -6%
Groceries £320 £300 -6%
Disposable income remaining £1,398 £1,996 +43%

Sources: LinkedIn 2025 · Rightmove Q4 2025 · HMRC 2025/26 · Numbeo 2025

Cost-of-living equivalence

Based on a cost-of-living index of 100 for London and 87 for Cambridge, a salary of £72,000 in London delivers equivalent purchasing power to £62,650 in Cambridge.

London £72,000 ≈
£62,650
in Cambridge

Income retention after all essentials

% of net monthly pay remaining after rent, transport, council tax and groceries

London 32%
Cambridge 48%

Everyday costs

Estimated typical prices · scaled from Numbeo 2025

Cappuccino
London £3.80
Cambridge £3.31
Transit (single trip)
London £4.40
Cambridge £1.79
Gym membership
London £55/mo
Cambridge £48/mo
Cinema ticket
London £16.00
Cambridge £13.92

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Frequently asked questions

Does a software engineer earn more in London or Cambridge? +
London pays a median £72,000 vs £68,000 in Cambridge — a gross difference of £4,000. However, after accounting for rent and living costs, Cambridge professionals have £456/month more disposable income, making it the stronger city in real terms.
What is the take-home pay for a software engineer in London vs Cambridge? +
In London: gross £72,000£4,360/month net take-home. In Cambridge: gross £68,000£4,166/month net take-home. After paying median 1-bed rent, London leaves £2,210/month vs Cambridge's £2,666/month.
What salary in Cambridge matches London purchasing power? +
Approximately £62,650 in Cambridge delivers equivalent purchasing power to £72,000 in London, based on a cost-of-living index of 100 (London) vs 87 (Cambridge).
Is London or Cambridge cheaper to live in? +
Cambridge is cheaper overall, with a cost-of-living index of 87 vs 100 for London (London = 100). Rent in London averages £2,150/month (1-bed) vs £1,500/month in Cambridge.
What is the rent-to-income ratio for a software engineer in London? +
A software engineer in London earning £72,000 takes home £4,360/month. With median 1-bed rent of £2,150/month, the rent-to-income ratio is 49% (high pressure). In Cambridge the equivalent ratio is 36%.

Explore further

Affordability and salary breakdowns for London and Cambridge

Afford London on £70,000? Afford Cambridge on £70,000? Salary equivalence: London → Cambridge Standard of living: Software Engineer in London Standard of living: Software Engineer in Cambridge

Data sources & methodology

ONS Annual Survey of Hours and Earnings 2025 · Rightmove Rental Trends Tracker Q1 2026 · Numbeo Cost of Living 2026

Analysis by the SalaryDex data team · May 2026 · Corrections: [email protected] · Full methodology · Data transparency pledge