Cost Comparison 2025

MelbournevsMilan

Australia
Italy

Overall

💰

-11.8%

Melbourne is 11.8%cheaper

Rent

🏠

-23.1%

Housing is 23.1% lower

Dining

🍽️

-5.9%

Restaurants 5.9% cheaper

Groceries

🛒

-10.0%

Food shopping 10.0% less

Comparing the cost of living between Melbourne, Australia and Milan, Italy reveals significant insights for anyone considering relocation or travel in 2025. Our comprehensive analysis shows that Melbourne is more affordable than Milan by approximately 11.8%. This comparison covers essential living expenses including housing, food, transportation, and utilities, providing you with a complete picture of what to expect financially in each city.

Key Cost Differences

Housing costs in Melbourne are higher than in Milan by 30%. A one-bedroom apartment in Melbourne's city center costs around A$2,200, while the same in Milan is approximately €1,500.

Dining out in Melbourne costs about the same compared to Milan. An inexpensive restaurant meal costs A$20 in Melbourne versus €18 in Milan.

Public transportation in Melbourne is more expensive, with monthly passes at A$170 compared to €39 in Milan.

Purchasing power in Melbourne is notably stronger, meaning residents can afford more goods and services with their local salaries compared to Milan.

Grocery shopping in Melbourne is more expensive by approximately 11%. Basic items like milk, bread, and eggs show higher prices across the board.

Monthly Budget Breakdown

When breaking down monthly expenses, a single person in Melbourne can expect to spend approximately A$786 per month (excluding rent), while in Milan, the same lifestyle would cost around €549. For families, these figures increase significantly, with a family of four requiring about A$2,750 monthly in Melbourne versus €1,921 in Milan. These estimates include groceries, dining out, transportation, utilities, and entertainment, providing a realistic picture of day-to-day living costs in each city.

Detailed Cost Comparison

Item
Melbourne, Australia
Milan, Italy

🏠 Housing Costs (Monthly Rent)

1BR City Center
A$2,200
€1,500
1BR Outside Center
A$1,700
€1,000
3BR City Center
A$4,000
€3,000

🍽️ Food & Dining

Meal, Inexpensive Restaurant
A$20
€18
Meal for 2, Mid-range Restaurant
A$110
€80
Cappuccino
A$5
€2
Domestic Beer (0.5L)
A$10
€6

🛒 Groceries

Milk (1L)
A$2
€2
Bread (500g)
A$3
€2
Eggs (12)
A$5
€4
Cheese (1kg)
A$11
€16

🚌 Transportation

One-way Ticket
A$5
€2
Monthly Pass
A$170
€39
Taxi Start
A$5
€6
Gasoline (1L)
A$2
€2

💡 Utilities & Internet

Basic Utilities (85m²)
A$180
€180
Internet (60 Mbps)
A$75
€30
Mobile Minute
A$0
€0

Tips for Moving Between Cities

For those considering a move from Milan to Melbourne, the cost savings can be substantial, particularly in housing and daily expenses. However, it's important to factor in salary differences and job opportunities. Conversely, moving from Melbourne to Milan requires careful financial planning. Consider negotiating salary adjustments that reflect the higher cost of living, and research neighborhoods outside the city center for more affordable housing options while maintaining reasonable commute times.

Quality of Life Indices

Melbourne

Cost of Living Index85
Rent Index65
Purchasing Power Index100

Milan

Cost of Living Index75
Rent Index50
Purchasing Power Index75

Frequently Asked Questions

Is Melbourne more expensive than Milan?

No, Melbourne is approximately 11.8% cheaper than Milan. You'll find significant savings in housing, food, and transportation costs.

How much salary do I need in Melbourne compared to Milan?

To maintain the same standard of living, you would need approximately 89% of your Milan salary when living in Melbourne. For example, if you earn $50,000 in Milan, you'd need about $44,737 in Melbourne for a comparable lifestyle.

What are the biggest cost differences between Melbourne and Milan?

The most significant cost difference is in housing. Rent prices differ by approximately 30%, making it a major factor in your budget planning. Transportation and utilities show notable variations between the two cities.

Which city is better for expats and digital nomads?

Melbourne offers better purchasing power, making it more attractive for those earning in strong currencies. However, Melbourne provides lower living costs, which benefits budget-conscious travelers. Consider Melbourne if you prioritize earning potential, or Milan for affordability.

What's a reasonable monthly budget for Melbourne vs Milan?

In Melbourne, a single person needs approximately A$2,486 per month (including rent), while a family of four requires about A$5,550. In Milan, these figures are €1,549 for singles and €3,721 for families. These estimates include housing, food, transportation, and basic entertainment.

The cost of living comparison between Melbourne and Milan in 2025 shows notable differences across various expense categories. Whether you're planning a relocation for work, considering retirement options, or simply curious about living costs, understanding these differences is crucial for making informed financial decisions.

Need to calculate salary equivalence?

Find out how much you need to earn in Milan to maintain your lifestyle from Melbourne

Calculate Salary Equivalence

Last updated: 2025-01-15 • Data sourced from multiple providers