# Salary to cost of living ratio of tech capitals

New / Eng

Hello world,

I'm wondering how the salaries compare to the cost of living in the following areas, for tech jobs.

Bay area
Shenzhen, China
London, UK
NYC, USA

If you work in one of these areas, could you provide an estimate for your total pre-tax salary (not including RSUs)/total rent for the year? If you could also state your YOE, and your job title, what would be appreciated also. I'm trying to collect these data points to make some useful graphics for people.

Is ratio the right metric?
Would you rather have:

\$100k salary / \$20k CoL = 5.0
annual savings = \$80k

or

\$300k salary / \$100k CoL = 3.0
annual savings = \$200k
Aug 26 7
It’s a measure of how early you can retire.

In your example, in the 20k CoL area, if I work for 10 years, I can retire and sustain myself for 40 more years (aka net 50 years)

For the same early retirement in 100k CoL area, I would have to work 17 years so that I can sustain for 17+34 = 51 years.

Ofcourse I’m neglecting inflation because I’m assuming it’s a constant rate in both places.
Aug 26
That's assuming you stay in one place for an entire lifetime. I can't speak to others' preferences, but having lived in a dozen or so cities in my life so far, that sounds like a strong assumption.
Aug 26
Read the OPs question again. They are collecting data cities wise.

There’s no other metric involved (like earning in city x and moving to city y)
Aug 26
I am asking OP whether the proposed metric answers their true objective.

(To which practical question is it trying to provide an answer?)

After all, a "useful" graphic typically tries to provide insight into some real-life problem, unless its only use is in a statistics classroom.
Aug 26
• New / Eng
OP
My objective currently is to get the ratios. I can always recover the absolute savings/year because cost of living information is readily available online. Thanks for checking though
Aug 26
• This comment was deleted by original commenter.

• Rubrik tuct8tt8
You forgot to mention the important point, location. And will be helpful if you provide the ratio.
Aug 26
• Arcesium tVdC57
NYC
Aug 26
• Cisco Htov50
NYC and backyard? Doesnt make sense
Aug 26
• Arcesium tVdC57
I got lucky in queens.
Aug 26
• Visa / Eng Jdmfe
Where is Bangalore (SV of india) and Hyperabad?
Aug 26 2
The OP didn't seem interested in those, for what personal reasons I know not.
Aug 26
• New / Eng
OP
It's because India is still quite an outlier in terms of economic size compared to the others that it might have other unaccounted for phenomena that will see the data.
Aug 27
• New VESx64
It’s incorrect to substract mortgage from salary as part of CoL, since it becomes part of your property.
Aug 26 2
• Incorrect. For first 10 years of any mortgage, only 20% of your payment is towards principal. Rest is interest
Aug 26
• New VESx64
@hitman047, something is wrong with your math. Let’s consider a house \$500k on 15 years. So you are saying I will pay only 1/5 of it after 10 years?
Aug 26
• Shouldn't you express rent as a percentage of your salary instead? That's easier to understand and that's how banks do it when you apply for a mortgage. Debt-to-income ratio.
Aug 26 1
• New / Eng
OP
Dude, it's the same thing. Blind is filled with engineers and finance people to whom that's the exact same information.
Aug 26
• Rubrik tuct8tt8
Bay area - 5 years - 1 person.

If I were to live in 1b1b then my ratio is ~5.6
Aug 26 0