Software Engineer · City comparison · 2026

London vs Oxford

Oxford wins on purchasing power. Oxford software engineers have £361/month more disposable income after rent than their London counterparts.

London salary
£72,000
£4,360/mo take-home
Oxford salary
£65,000
£4,021/mo take-home
Oxford wins by
+£361
per month after rent
Winner on purchasing power
Oxford

After paying rent, a software engineer in Oxford retains £361/month more than in London — that's £4,332/year extra in purchasing power.

+£361
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
Oxford
View full breakdown →
Gross salary £65,000
Net monthly £4,021
Rent (1-bed) £1,450
Rent-to-income 36% — Stretched
After rent £2,571

London vs Oxford: what the £361/month gap means for a software engineer

On paper, London software engineer roles pay £7,000/year more than Oxford. But take-home after tax and National Insurance tells a different story — London workers keep £4,360/month versus £4,021/month in Oxford.

The bigger picture is after rent. Average London rent runs £2,150/month versus £1,450/month in Oxford. Once housing costs are factored in, Oxford workers have £2,571/month disposable income versus £2,210/month in London — that is £4,332/year in real spending power.

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

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

Monthly cost comparison

All figures monthly · 2025/26

Category London Oxford Delta
Rent (1-bed median) £2,150 £1,450 -33%
Transport £185 £80 -57%
Council tax £165 £155 -6%
Groceries £320 £300 -6%
Disposable income remaining £1,398 £1,896 +36%

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 85 for Oxford, a salary of £72,000 in London delivers equivalent purchasing power to £61,200 in Oxford.

London £72,000 ≈
£61,200
in Oxford

Income retention after all essentials

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

London 32%
Oxford 47%

Everyday costs

Estimated typical prices · scaled from Numbeo 2025

Cappuccino
London £3.80
Oxford £3.23
Transit (single trip)
London £4.40
Oxford £1.90
Gym membership
London £55/mo
Oxford £47/mo
Cinema ticket
London £16.00
Oxford £13.60

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Frequently asked questions

Does a software engineer earn more in London or Oxford? +
London pays a median £72,000 vs £65,000 in Oxford — a gross difference of £7,000. However, after accounting for rent and living costs, Oxford professionals have £361/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 Oxford? +
In London: gross £72,000£4,360/month net take-home. In Oxford: gross £65,000£4,021/month net take-home. After paying median 1-bed rent, London leaves £2,210/month vs Oxford's £2,571/month.
What salary in Oxford matches London purchasing power? +
Approximately £61,200 in Oxford delivers equivalent purchasing power to £72,000 in London, based on a cost-of-living index of 100 (London) vs 85 (Oxford).
Is London or Oxford cheaper to live in? +
Oxford is cheaper overall, with a cost-of-living index of 85 vs 100 for London (London = 100). Rent in London averages £2,150/month (1-bed) vs £1,450/month in Oxford.
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 Oxford the equivalent ratio is 36%.

Explore further

Affordability and salary breakdowns for London and Oxford

Afford London on £70,000? Afford Oxford on £65,000? Salary equivalence: London → Oxford Standard of living: Software Engineer in London Standard of living: Software Engineer in Oxford

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