How much money does a London SWE save in 2025?

💰 How much money does a London SWE save/earn? (Quick Guide 2026)?

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)

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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