Savings rate in Melbourne — are you on track?
Melbourne is a high cost city. Melbourne median rent is A$2,000/month, significantly below Sydney but rising rapidly post-pandemic. Melbourne earners at mid-income levels are typically close to the national savings benchmark despite rising costs.
Median rent
A$2,000/mo
Melbourne 2023
Typical other costs
A$2,000/mo
excl. housing
Savings benchmark
4–13%
mid-income AUD
Monthly budget snapshot — Melbourne
Pre-set for Melbourne — adjust to your situation
What a good savings rate looks like in Melbourne
Using data from ABS Household Expenditure Survey 2022/23, people at mid-range incomes in Australia typically save between 4–13% of gross income. In a high cost city like Melbourne, housing costs can compress that meaningfully — especially for renters.
Source: ABS Household Expenditure Survey 2022/23. Benchmarks shown for mid-income earners in Australia.
Frequently asked questions — Melbourne
What savings rate is considered good in Melbourne?+
In Melbourne, a savings rate of 8% of gross income is the expected benchmark for mid-income earners in Australia. A rate below 4% is considered a minimum floor — anything less means you are not building meaningful financial resilience. Reaching 19% or above puts you in a strong position relative to others at your income level.
How much does rent cost in Melbourne?+
The median rent in Melbourne is around A$2,000 per month. Melbourne median rent is A$2,000/month, significantly below Sydney but rising rapidly post-pandemic. This makes rent one of the biggest factors in your ability to save — especially for renters, who typically face higher housing cost burdens than homeowners with fixed mortgages.
What does a typical monthly budget look like in Melbourne?+
A typical budget in Melbourne includes approximately A$2,000/month for rent and A$2,000/month for other living expenses, for a combined A$4,000/month in core costs. Melbourne earners at mid-income levels are typically close to the national savings benchmark despite rising costs. Any income above this baseline is what is available for saving or investing.
Can you build wealth while living in Melbourne?+
Yes — but it requires a savings rate in the 4–13% range to match the benchmark for Australia. Melbourne is a high cost city, so housing and living costs are significant and require careful budgeting to reach the savings benchmark. Melbourne earners at mid-income levels are typically close to the national savings benchmark despite rising costs.
How is the savings benchmark in Melbourne calculated?+
The benchmark is derived from ABS Household Expenditure Survey 2022/23, the official national household expenditure survey for Australia. Savings rates are calculated by income band — so the expected rate adjusts based on what you earn, not a single national average. This makes the benchmark more relevant to your actual financial position in Melbourne.
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