Cost of Living: Melbourne vs Canberra (2026)
Side-by-side comparison of living costs between Melbourne and Canberra, Australia.
The Verdict
Melbourne is $600/year cheaper than Canberra. You need to earn approximately $1,000 less per year to maintain the same lifestyle in Melbourne compared to Canberra.
Side-by-Side Cost Comparison
| Category | Melbourne | Canberra | Winner |
|---|---|---|---|
| Rent (1br/week) | $520 | $530 | Melbourne |
| Rent (2br/week) | $680 | $680 | Tie |
| Groceries/week | $125 | $130 | Melbourne |
| Utilities/month | $260 | $270 | Melbourne |
| Transport/month | $195 | $170 | Canberra |
| Internet & Phone/month | $110 | $110 | Tie |
| Petrol/litre | $1.98 | $1.95 | Canberra |
| Median house price | $1,050,000 | $1,000,000 | Canberra |
| Median unit price | $620,000 | $580,000 | Canberra |
| Cost of living index | 89 | 88 | 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 Melbourne or Canberra 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 Melbourne or Canberra?
A 1-bedroom apartment costs $520/week in Melbourne and $530/week in Canberra. Melbourne is cheaper for rent by $10/week.
Are groceries more expensive in Melbourne or Canberra?
Weekly groceries for a single person cost $125 in Melbourne and $130 in Canberra. Melbourne is cheaper for groceries.
Which city has cheaper property — Melbourne or Canberra?
The median house price in Melbourne is $1,050,000 compared to $1,000,000 in Canberra. Canberra has cheaper property.
General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.