London vs Toronto
Salary equivalence calculator
Price-level ratio 0.885. Adjust to recalculate.
| Metric | London | Toronto | Difference |
|---|---|---|---|
| Price level index (NYC=100) | 82.3 | 72.8 | -11.5% |
| Rent index (NYC=100) | 74.6 | 61.4 | -17.7% |
| Equivalent of £120,000 | £120,000 | £106,148 | cheaper |
- Toronto is about 12% cheaper than London, so the same lifestyle costs less.
How far does your salary go in Toronto?
Moving from London to Toronto 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 Toronto at 72.8.
That makes Toronto roughly 12% cheaper. A salary of £120,000 in London translates to about £106,148 in Toronto. 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. Toronto's rent index is 61.4 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
Toronto is about 12% 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 Toronto
Based on the rent-index ratio of 0.823 (London 74.6 vs Toronto 61.4, 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 Toronto costs about 18% 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 Toronto to match London?
To keep the same standard of living as £120,000 in London, you would need roughly £106,148 in Toronto, a price-level ratio of 0.88.
Is Toronto more expensive than London?
No, it is about 12% cheaper overall.
How much is rent in Toronto compared to London?
Rent in Toronto is about 18% lower than in London (rent indices 74.6 vs 61.4, 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.