Direct Answer
Is £120,000 a Good Salary in London?
Yes, £120,000 is a strong salary in London, providing solid purchasing power after tax and rent.
Monthly Budget Estimate — London
Estimates for single employee renting in London, normal lifestyle. ONS/Numbeo estimates. Costs in GBP.
⚠ Cost-of-living data for London is estimated from public benchmarks and may not reflect your neighbourhood or lifestyle exactly.
Rent Affordability
Watch zone — 25–35% of net. The recommended ceiling is 30–33% of net income on rent.
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FAQ
What is £120,000 after tax in London?
£120,000 gross translates to approximately £70,168 net per year, or around £5,847 per month, for a single employee. The estimated effective tax rate is 30%.
Is £120,000 above average in London?
This salary ranks approximately Top 5% nationally. In London, the city-adjusted rank is Top 10%.
Can you live comfortably on £120,000 in London?
Yes — £120,000 provides comfortable breathing room in London for a single person.
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Calculate my Cushy Index →Calculations are estimates based on modelled tax rules and benchmark cost data. Not tax or financial advice. Last updated: June 2026.