Is ₹50 Lakh CTC in Kolkata Really Better Than ₹20 Lakh in Prayagraj? A Deep Dive into Cost of Living, Real Savings & LifeStyle Value
“Salary isn’t just about the Number—It’s about what stays with you.”
– A Modern Indian’s Guide to Evaluating CTC Value
Every job offer comes with a Tempting Figure—CTC. But what often goes UnNoticed is How much of that Salary you can actually Keep and Use. Because the Truth is, ₹50 Lakh CTC in a Metro City like Kolkata may not always translate to a Better Life than ₹20 Lakh in a Tier-2 City like Prayagraj.
Case Study: Comparing the Real Worth of ₹50 Lakh CTC vs ₹20 Lakh CTC
Let’s consider two Working Professionals in India:
Amit, living and working in Kolkata, with a CTC of ₹50 Lakh Per Annum.
Priya, based in her hometown Prayagraj, Earning a CTC of ₹20 Lakh Annually.
At first glance, it’s easy to assume that Amit is Financially ahead. But the Cost of Living, Spending Patterns, and LifeStyle Demands in these two Cities paint a very different Picture.
What Does ₹50 Lakh CTC in Kolkata Actually Buy You?
Let’s explore Amit’s LifeStyle and Expenditure as someone Earning ₹50L in a Tier-1 Metro City.
Net Savings: Around ₹20 Lakh per Year
Key Observations:
Rent takes a Massive Chunk—especially in Prime City Locations.
Commute and Traffic stress often result in hiring Cabs or Fuel-Heavy options.
LifeStyle costs, like Eating Out, Fitness Memberships, Weekend Trips, and Premium Schooling, Inflate Monthly OutFlows.
Though Amit Earns a High Salary, the High Cost of Survival and Standard of Living Consume most of it.
What Does ₹20 Lakh CTC Offer in Prayagraj?
Now, let’s consider Priya’s Cost of Living in a Tier-2 City like Prayagraj.
Net Savings: ₹12–₹13 lakh per Year
Key Observations:
Rent is significantly Lower, even in Central and Well-Developed parts of the City.
Local Markets, Simple Living, and less Peer Pressure mean Lower LifeStyle Inflation.
Commutes are Minimal, often under 20 Minutes.
Community Living and Family Support help reduce Overhead Costs.
Despite Earning much less than Amit, Priya enjoys high Savings with a Balanced LifeStyle.
The Catch: Real Purchasing Power Depends on the City, Not Just CTC
This is where the Illusion breaks.
Even though Amit is Earning ₹30 Lakh more Annually than Priya, he is also Spending nearly ₹30 Lakh more on maintaining his Urban LifeStyle. In contrast, Priya, with only ₹20 Lakh CTC, is able to Save more than Half her Salary while enjoying a Lower-Stress, High-Contentment LifeStyle.
What does this mean?
That purchasing power is relative to the City you live in. The value of your money depends on where and how you spend it.
Equivalent Value Comparison Table
While the ₹50L CTC may sound attractive, the ₹30 lakh difference is often absorbed by the cost of:
Rent
Transport
Dining & Outings
EMIs and City-Specific Taxation
Price Inflation in Goods & Services
It’s Not About What You Earn. It’s About What You Keep.
In today’s Professional World where Remote and Hybrid work models are Gaining Popularity, the importance of Choosing the Right City is bigger than ever.
Here’s what truly matters:
Are you living PayCheck-to-PayCheck despite Earning big?
Is your Rent eating into your Savings?
Could you move to a Tier-2 or Tier-3 City and double your Savings while enjoying more Freedom?
CTC is Just a Number—Value Lies in Location & LifeStyle
This case study proves a simple yet PowerFul point:
A high Salary in a Metro City doesn’t Guarantee wealth.
A moderate Salary in a Smaller City could bring both Financial Peace and Emotional Balance.
Trisha Kesarwani
Fintech Specialist
Asiatic In Corp
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