London vs Tokyo
Salary equivalence calculator
Price-level ratio 0.861. Adjust to recalculate.
| Metric | London | Tokyo | Difference |
|---|---|---|---|
| Price level index (NYC=100) | 82.3 | 70.9 | -13.9% |
| Rent index (NYC=100) | 74.6 | 45.1 | -39.5% |
| Equivalent of £120,000 | £120,000 | £103,378 | cheaper |
- Tokyo is about 14% cheaper than London, so the same lifestyle costs less.
How far does your salary go in Tokyo?
Moving from London to Tokyo changes your cost of living in ways a currency conversion can't capture. What matters is purchasing power: how much the same basket of housing, food, transport and services costs in each place. On our index, where New York City = 100, London sits at 82.3 and Tokyo at 70.9.
That makes Tokyo roughly 14% cheaper. A salary of £120,000 in London translates to about £103,378 in Tokyo. Above that and you gain in real terms; below it and you take an effective pay cut.
Housing drives the gap
Rent is the largest and most variable line in most budgets. Tokyo's rent index is 45.1 versus London's 74.6.
Common mistakes
- Converting currency instead of purchasing power.
- Ignoring taxes, which vary by jurisdiction.
- Forgetting one-off relocation costs.
Bottom line
Tokyo is about 14% cheaper than London, so the same lifestyle costs less. Use the calculator to plug in your real salary and compare against any concrete offer.
Rent equivalence: London vs Tokyo
Based on the rent-index ratio of 0.605 (London 74.6 vs Tokyo 45.1, NYC = 100).
Housing is usually the biggest single difference between two cities, and it moves independently of the overall price level. Renting the equivalent home in Tokyo costs about 40% less than in London. Enter your actual rent above to see what a like-for-like place would cost after you move — a more honest gauge of affordability than a raw salary conversion, since renters and owners feel very different impacts.
Frequently asked questions
What salary do I need in Tokyo to match London?
To keep the same standard of living as £120,000 in London, you would need roughly £103,378 in Tokyo, a price-level ratio of 0.86.
Is Tokyo more expensive than London?
No, it is about 14% cheaper overall.
How much is rent in Tokyo compared to London?
Rent in Tokyo is about 40% lower than in London (rent indices 74.6 vs 45.1, NYC = 100). Use the rent calculator on this page for your exact figure.
How is the equivalent salary calculated?
We multiply your salary by the ratio of the two cities' composite price-level indices (housing, food, transport, services), benchmarked so New York City = 100.
Methodology
We build a composite price-level index for each city from official regional price parities and international purchasing-power parities across housing, food, transport and services, normalized so New York City = 100. The equivalent salary is your salary multiplied by the ratio of the destination index to the origin index. It estimates the income needed to hold real purchasing power constant and does not model taxes.