Cost of Living: Canberra vs Melbourne (2026)
Side-by-side comparison of living costs between Canberra and Melbourne, Australia.
The Verdict
Melbourne is $600/year cheaper than Canberra. You need to earn approximately $1,000 more per year to maintain the same lifestyle in Canberra compared to Melbourne.
Side-by-Side Cost Comparison
| Category | Canberra | Melbourne | Winner |
|---|---|---|---|
| Rent (1br/week) | $530 | $520 | Melbourne |
| Rent (2br/week) | $680 | $680 | Tie |
| Groceries/week | $130 | $125 | Melbourne |
| Utilities/month | $270 | $260 | Melbourne |
| Transport/month | $170 | $195 | Canberra |
| Internet & Phone/month | $110 | $110 | Tie |
| Petrol/litre | $1.95 | $1.98 | Canberra |
| Median house price | $1,000,000 | $1,050,000 | Canberra |
| Median unit price | $580,000 | $620,000 | Canberra |
| Cost of living index | 88 | 89 | Canberra |
How Much More Do You Need to Earn?
Check exactly what you take home with our take-home pay calculator.
Which City is Cheaper — Category by Category
Net Difference in Annual Costs
Living in Melbourne saves you $600 per year compared to Canberra. That is $50/month or $12/week.
Explore Each City
Frequently Asked Questions
Is Canberra or Melbourne cheaper to live in?
Melbourne is cheaper to live in than Canberra by approximately $600 per year. Melbourne has a cost of living index of 89 compared to 88 for Canberra (Sydney = 100).
How much more do you need to earn in Canberra compared to Melbourne?
You need to earn approximately $1,000 more per year (pre-tax) to maintain the same standard of living in Canberra compared to Melbourne.
Is rent cheaper in Canberra or Melbourne?
A 1-bedroom apartment costs $530/week in Canberra and $520/week in Melbourne. Melbourne is cheaper for rent by $10/week.
Are groceries more expensive in Canberra or Melbourne?
Weekly groceries for a single person cost $130 in Canberra and $125 in Melbourne. Melbourne is cheaper for groceries.
Which city has cheaper property — Canberra or Melbourne?
The median house price in Canberra is $1,000,000 compared to $1,050,000 in Melbourne. Canberra has cheaper property.
General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.