December 02, 2025 | Read Online | How much money does a London SWE save? It's not as much as you'd think! |
|  | | Sophie @ the stack |
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| You’ve found a software engineer job in London with a £60k ($80k) salary — which sounds great… but your real disposable income might be around £25 a day. | | | | | | 💰 HOW MUCH DOES A LONDON SWE EARN? | Let’s use a realistic mid-level software engineer salary in London: £60,000 | | After tax & pensions deductions: | Income Tax (20% on most income, 40% on anything above £50k) National Insurance (UK social security tax) Pension (5% employee contribution)
| This leaves you with a monthly take home pay of £3780 ($5000). | 👇 Not bad! What about the cost of living?
Keep scrolling… |
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| | | | | Monthly Expenses in London: | Rent (1 bedroom flat, Zone 2–3): £2000 Council Tax: £120 Internet + Phone: £60 Utilities (gas, electric, water): £160 Transport (Monthly pass for zones 1–3): £200 Food/gym/entertainment = £500 minimum
(assuming you rarely eat out/drink - see full breakdown)
| Did you know: London has the oldest, and most expensive, public transport system in the world. |
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| So if you live alone, total monthly living expenses = £3040 ($4030)
→ That’s around 80% of your salary! | FINAL SAVINGS | So a £5000 monthly pay actually leaves you with £740 after tax and routine bills, or £25 ($30) a day. | | |
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