Rs 1 crore salary's reality in Mumbai: Big deal or just average? IIM graduate busts the myth
In India, earning Rs 1 crore annually has long been seen as a significant financial milestone—a symbol of success and comfort. However, in Mumbai, the story is more complicated. An alumnus of IIM Ahmedabad, Anurag Singal, recently shared insights on LinkedIn explaining why a Rs 1 crore salary means very different things depending on where you live in the city and the lifestyle you lead.
The Rs 1 Crore Dream vs. Reality in Mumbai
Singal points out that Rs 1 crore a year does place you among the top 0.1% of income earners in India, well above the Rs 50 lakh mark defining the top 1%. On paper, this is impressive, especially when compared to the median household income in Mumbai, which is roughly Rs 6–8 lakh annually according to a 2024 IIM study. That means a Rs 1 crore salary is about 12 to 15 times the average income.
But the challenge is Mumbai's high cost of living. In upscale neighborhoods such as Worli or Bandra West, monthly rent can range from Rs 1.5 lakh to Rs 3 lakh. Add to that hefty tax bills—under the new tax regime, one might pay upwards of Rs 38 lakh annually—and the income starts to shrink quickly. Singal emphasizes that these costs chip away at what might initially appear to be a large salary.
What Really Consumes Your Income?
Singal breaks down common expenses that eat into a Rs 1 crore salary:
Rent in expensive areas: Rs 1.5–3 lakh per month
International school fees for children: around Rs 5 lakh annually
Dining out, which can cost Rs 10,000 or more per meal
Family vacations, often exceeding Rs 5 lakh yearly
Factoring these in, Singal suggests that after taxes and expenses, one might only save between Rs 10 lakh and Rs 20 lakh a year. His candid assessment is that while Rs 1 crore is 'solid,' it's definitely not enough to 'buy a yacht.'
Location Matters: Thane vs. South Mumbai
Where you live in Mumbai makes a huge difference. In suburbs like Borivali or Thane, earning Rs 1 crore annually makes you stand out and provides a comfortable lifestyle. You can afford a larger home, personal vehicle, and save money while enjoying a good quality of life.
However, in South Mumbai's boardrooms, filled with finance and tech executives earning between Rs 1 crore and Rs 5 crore or more, Rs 1 crore is considered just 'par for the course.' With over 20,000 ultra-high-net-worth individuals residing in the city, Singal notes that 'wealth, not income, is the real flex' here.
Changing Perceptions of Wealth
The IIM alumnus' observations highlight how earning Rs 1 crore can feel very different depending on your environment. While it is undoubtedly a financial achievement, it is no longer the ultimate sign of prosperity in Mumbai's elite circles. The key takeaway from Singal's post is that Rs 1 crore is 'nice,' but it should be seen more as a milestone on the journey rather than the finish line.
The value of a Rs 1 crore salary in Mumbai depends on lifestyle choices, location, and expenses. For many, especially outside the city's priciest areas, it remains a mark of success. For others, it's simply the starting point in a highly competitive and costly urban landscape.
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