Hi, I'm Jen! I'm a personal finance expert and money coach aiming to help you take control of your money. I went from being broke to a six-figure net worth and am now on track to be financially independent at age 40. Discover Jen's story
Are you curious about what life on a salary of £85k is like in the UK? I’ve worked in the UK for over ten years, from part-time employment during uni to graduate jobs. I’ve experienced all types of salaries so I can tell you what you’ll get for £85k.
A salary of £85k per year is a high salary in the UK. It is more than double the national average. On £85k, you can afford a high living standard and buy property even in expensive places.
How Does £85k Compare to the Average UK Salary?
The easiest way to assess whether £85k is a high salary is to compare it to the UK average. The average salaries of full-time employees per area are as follows:
| Area | Average Salary |
|---|---|
| London | £42,000 |
| South East | £34,000 |
| Scotland | £33,000 |
| East | £33,000 |
| West Midlands | £32,000 |
| South West | £31,000 |
| North West | £31,000 |
| Wales | £31,000 |
| East Midlands | £30,000 |
| Yorkshire | £30,000 |
| Northern Ireland | £30,000 |
| North East | £30,000 |
As the table above shows, the average salary in the UK ranges between £30,000-42,000. A salary of £85k is more than double, in some places almost thrice, the national average.
Is £85k a Good Salary in London?
£85k is a good salary, even in an expensive place like London. You can afford a decent lifestyle, enjoy luxuries, and still have money to save. While £85k is good, it is also nothing special in London. In the UK’s capital, many people earn six-figure salaries. Most of the big companies have offices there.
How Much Is £85k After Tax?
A salary of £85k equals £7083 per month. After tax, this is £58,350 yearly or £4862 monthly. The exact amount you get may differ due to extra deductions or allowances. For example, you will see less of your money if you repay a student loan.
With your income, you are a high-rate taxpayer. You’ll pay more tax on any income over £50,270. See how much someone earning a salary of £75k per year is getting.
| Salary | Yearly | Monthly | Weekly |
|---|---|---|---|
| Gross salary | £85,000 | £7083 | £1635 |
| Income tax | £21,432 | £1786 | £412 |
| National insurance contribution | £5218 | £435 | £100 |
| Net salary | £58,350 | £4862 | £513 |
How Much Can You Afford on a £85k Salary?
Renting
Experts in the UK recommend not spending more than one-third of one’s salary on rent. Thus, you can spend £2337 per month on rent.
With this, you can rent a house or an upscale flat in most places in the UK. In London, you can rent a decent-sized flat or a luxury studio. You should not have a problem finding accommodation anywhere in the country.
Buying a Property (Mortgage)
You can get a mortgage of up to £382,500. Since most banks require a deposit of 10%, you would have around £421,000. How much you can borrow also depends on your circumstances. You may get less than this amount.
This is enough to buy a small mansion in the cheaper areas and an average house in expensive areas. In London, you could buy a three-bedroom flat.
Buying in the most expensive areas of London may still be a challenge. You would need a larger deposit as prices start at £0.5 million.
Food and Other Costs
You should not have to worry about grocery costs. The average monthly food cost in the UK ranges from £190-250 per month. You can afford to shop at high-end supermarkets and eat out several times per month.
You should not have a problem paying for other costs. You will have money to afford holidays, expensive items, or clothing. Of course, overspending can become a problem regardless of salary. You should always monitor your spending.
Savings
You should put some money away every month in your savings. There are few valid excuses for not saving on this salary. Also, consider investing. Your salary is perfect to invest and build long-term wealth. It may make sense to consult an independent financial advisor to discuss building long-term wealth.
Can you Raise a Family on £85k in the UK?
You can raise a family on a salary of £85k. Even if you are the sole earner, you can support two children. If your spouse is also working, you will, of course, have even more money available.
The average cost of raising a child is about £11,000 per year. This number could be much lower or higher depending on your lifestyle, child’s age, and other factors.
Are You Wealthy if You Earn £85k per Year?
Being wealthy means having a high net worth. Net worth is the sum of all your assets, including savings, investments, property, and other valuables. It is not linked to your salary.
However, you have a good chance of becoming wealthy in the UK. If you save, invest, and spend your money wisely, you can retire as a millionaire.
Is £85k a Good Salary in the UK? Summary
£85k is a good salary in the UK. You earn more than double the average salary in the UK. Even in London, your salary is above the average.
You may also like to read about life on a salary of £25k in the UK.
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