Is £120k a good salary in the UK (2024)

“Is £120k a good salary in the UK ?” This question may people ask who worked with that salary or got an offer on that salary. On paper, 120k is a lot of money, considering the average UK salary is just over £34,963.

But, here’s the truth about what you can really afford while living in the UK for £120,000 per year.

Is £120k a good salary in the UK?

Earning a 120k salary in the UK is generally considered a good income. It is far above the nation’s median salary. With a 120k salary, you would come in the top 1% of earners in the UK.

A £120,000 salary is a comfortable income, which helps you to live in most areas of the UK. It would allow you to live in a suitable home, own a reliable car, and call off your basic expenses. You would also have some extra money to either enjoy now or invest for later.

How is a £120k salary in London?

London is an expensive city but still, 120k is an excellent income in London. It is above the average salary of a Londoner. Therefore, a 120k salary provides more financial stability compared to the average Londoner. This salary is enough to cover all living expenses. Like housing, transportation, entertainment and day-to-day expenses.

What is £120,000 after tax UK?

The 120,000 is 78,653 after tax. In this tax calculation, we are only considering the individual’s salary. We don’t contain other sources of income or deductions. Like student loans, pensions, or other income.

120k salaried person comes under the 40% tax bracket. The following table provides an estimate of your tax deduction. Your actual tax deduction may vary. To calculate your own tax click here.

	Yearly	Monthly	Weekly	Daily
Gross Salary	£120,000	£10,000	£2,308	£462
Taxable Salary	£107,430	£8,953	£2,067	£452
Income Tax	£35,428	£2,953	£681	£ 152
National Insurance	£5,919	£492	£114	£ 23
Take-Home	£78,653	£6,554	£1,513	£287

Is £120k a good salary in your location?

£120,000 – it’s a sweet melody, right? But the rhythm changes depending on where you live! However, in most places, you’re the Beyoncé of budgets, ruling the roost with a platinum credit card. London, though? That’s Kim Kardashian territory, where your fancy car’s just another taxi in the queue. So, your wallet’s a tap dancer, stepping lightly in some places and doing the full can-can in others! Check out the table below for a regional salary breakdown – it’s like a map to your financial fandango!

Location	Average Salary
United Kingdom	£34,963
London	£44,370
South East	£36,560
Scotland	£35,518
East	£34,833
South West	£33,450
North West	£33,036
West Midlands	£33,003
Northern Ireland	£32,879
Wales	£32,371
Yorkshire and The Humber	£31,920
East Midlands	£31,634
North East	£31,200

Is £120k a good salary for your age?

Forget about age-related averages! Your £120,000 income puts you in a league of your own, soaring above the median for all age groups in the UK. Even the 40-49, who are known for their solid earning potential, only reach a median of £39,491. See the table below for the full picture of average salaries in 2023. Trust me, you’ll be proud to see where you stand!

Age Group	Annual Earnings
16-17	£9,969
18-21	£20,437
22-29	£29,120
30-39	£36,405
40-49	£39,491
50-59	£36,834
60+	£32,530

Is a £120k salary enough to live in the UK?

A 120k salary would be enough to live comfortably in the UK. While 120k may not make you rich, it can provide a good standard of living in the UK. However, the actual cost of living depends on that place and personal circumstances.

Housing: Outside of London, you can afford a nice four-bedroom home. But in London, you can get a two or three-bedroom flat in a decent area. Rent for a three-bedroom home averages £1,500-£2,500 per month in the UK. But it goes up to £4,500 in London.

Lifestyle: You’ll have enough for meals out, entertainment, and holidays. You could take a few nice vacations each year and enjoy your hobbies. You won’t struggle to pay bills, but you’ll still need to budget wisely. Because it is good for financial stability.

Saving: With a 120k salary, you can save 20k to 25k per year. If you manage your money well. While not enough to retire early, that’s a good nest egg.

While a 120k salary in the UK is certainly comfortable, costs are high and taxes eat into your paycheck. However, good budgeting skills can help you to live a comfortable life.

How much rent can I afford on a £120k salary?

The actual rent amount depends on you. Because it depends on ‘What kind of house do you want to buy?’ Like a house or a flat or a studio. The rent price also depends on location. Big cities Like London have a higher rent price compared to other areas of the UK.

Housing accounts should be no more than 30% of your gross monthly income. At £120k salary, you can spend a maximum of £3,000 per month on rent.

Rent prices in the UK

The average rent price in the UK depends upon the location, size of the property, and number of bedrooms.

• Studio: The rental fee of a studio can be anywhere from £550 to £1,550 per month.
• Apartment: The rental fee of a apartment can be anywhere from £630 to £1,980 per month.

Rent prices in the London

Here also, the prices of rent deepened upon the location, property size and number of bedrooms.

• Studio: The rental fee of a studio can be anywhere from £1,400 to £2,200 per month.
• Apartment:The rental fee of a apartment can be anywhere from £2,000 to £4,500 per month

Can I afford a house with a £120k salary in the UK?

A 120k salary is enough to buy a house. A lender offers mortgages up to 4.5 times your annual income. That means you can borrow up to £540,000. If you have a large deposit or a good credit score you can borrow more than 540k.

You can buy a house from £400k to £600k in London. But you will get a house with a lower price outside of London.

For buying a house, you have to deposit at least 10% of the home’s value. Keep in mind that a larger deposit can lead to more competitive interest rates and a better mortgage offer.

It’s also important to consider other costs associated with a buying house. Like stamp duty, legal fees, maintenance and insurance.

House prices in the UK

The following table shows you the average house price in the UK.

Location	Average Price
London	£521,700
South East England	£410,000
East of England	£400,000
South West England	£327,100
Midlands	£270,700
North of England	£242,800
Scotland	£225,200
Wales	£212,800

Can I raise a family of £120k in the UK?

A £120k salaried person can comfortably support a family in the UK. With this salary, you can comfortably raise a family of five. With a £120,000 salary, even if you are the sole earner, you can successfully raise two children.

The average expense to raise a child is around £11,000 per year. But, the actual fees depend on your location, lifestyle, and your child’s age. Childcare expenses are too high in London. For young child care, you have to pay around £1,000 per month in London. But, the price is low in other locations in the UK.

The UK government provides several support programs to help families raise children. One notable benefit is free education and healthcare services through the National Health Service. These benefits can substantially lessen the financial strain of raising a family.

Can I buy a car on a £120k salary?

Yes, it is possible to buy a car for £120k salary in the UK. With this income level, you can choose from luxurious to budget-friendly cars. In generally recommended that you spend no more than 35% of your gross annual income on a car. That means you can spend up to £42,000 on a car. With this amount, you can easily afford a BMW 3 Series or Audi A4 or any other car.

Don’t forget to budget for fuel, road tax and insurance. The insurance cost comes around £500 to £1,000 per year.

When purchasing a car, it is advisable to follow the 20/4/10 rule. The 20/4/10 rule is a financial guideline for car buyers. It suggests making a down payment of 20% of the car’s value and financing the car for no more than four years. It also suggests keeping transportation costs no more than 10% of your monthly income.

Conclusion

So there you have it, the truth about living in the UK on £120k salary. Earning £120k can be a fulfilling experience if you have realistic expectations about costs, taxes, and lifestyle. It can also provide a comfortable lifestyle for most families. Ultimately, £120k is a good salary for you depending on your individual needs and goals.

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