Winner on purchasing power
Newcastle
After paying rent, a software engineer in Newcastle retains
£93/month more than in London —
that's £1,116/year extra in purchasing power.
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
Newcastle
View full breakdown →
Gross salary
£46,000
Net monthly
£3,053
Rent (1-bed)
£750
Rent-to-income
25% — Comfortable
After rent
£2,303
London vs Newcastle: what the £93/month gap means for a software engineer
On paper, London software engineer roles pay £26,000/year
more than Newcastle. But take-home after tax and National Insurance tells a
different story — London workers keep £4,360/month versus
£3,053/month in Newcastle.
The bigger picture is after rent. Average London rent runs £2,150/month
versus £750/month in Newcastle. Once housing costs are factored in,
Newcastle workers have £2,303/month
disposable income versus £2,210/month in London —
that is £1,116/year in real spending power.
Newcastle's rent-to-income ratio of 25%
compares favourably to London's 49%.
Monthly cost comparison
All figures monthly · 2025/26
| Category |
London |
Newcastle |
Delta |
| Rent (1-bed median) |
£2,150 |
£750 |
-65% |
| Transport |
£185 |
£75 |
-59% |
| Council tax |
£165 |
£112 |
-32% |
| Groceries |
£320 |
£255 |
-20% |
| Disposable income remaining |
£1,398 |
£1,729 |
+24% |
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 61 for Newcastle,
a salary of £72,000 in London delivers
equivalent purchasing power to £43,900 in Newcastle.
London £72,000 ≈
£43,900
in Newcastle
Income retention after all essentials
% of net monthly pay remaining after rent, transport, council tax and groceries
Everyday costs
Estimated typical prices · scaled from Numbeo 2025
Cappuccino
London
£3.80
Newcastle
£2.32
Transit (single trip)
London
£4.40
Newcastle
£1.79
Gym membership
London
£55/mo
Newcastle
£34/mo
Cinema ticket
London
£16.00
Newcastle
£9.76
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Frequently asked questions
Does a software engineer earn more in London or Newcastle?
+
London pays a median £72,000 vs £46,000 in Newcastle
— a gross difference of £26,000.
However, after accounting for rent and living costs, Newcastle professionals
have £93/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 Newcastle?
+
In London: gross £72,000 → £4,360/month net take-home.
In Newcastle: gross £46,000 → £3,053/month net take-home.
After paying median 1-bed rent, London leaves £2,210/month
vs Newcastle's £2,303/month.
What salary in Newcastle matches London purchasing power?
+
Approximately £43,900 in Newcastle delivers equivalent purchasing power to
£72,000 in London, based on a cost-of-living index of
100 (London) vs 61 (Newcastle).
Is London or Newcastle cheaper to live in?
+
Newcastle is cheaper overall, with a cost-of-living index of 61 vs 100 for London (London = 100).
Rent in London averages £2,150/month (1-bed)
vs £750/month in Newcastle.
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 Newcastle the equivalent ratio is 25%.