Cost of Living: Melbourne vs Newcastle (2026)
Side-by-side comparison of living costs between Melbourne and Newcastle, Australia.
The Verdict
Newcastle is $4,320/year cheaper than Melbourne. You need to earn approximately $7,000 more per year to maintain the same lifestyle in Melbourne compared to Newcastle.
Side-by-Side Cost Comparison
| Category | Melbourne | Newcastle | Winner |
|---|---|---|---|
| Rent (1br/week) | $520 | $450 | Newcastle |
| Rent (2br/week) | $680 | $580 | Newcastle |
| Groceries/week | $125 | $120 | Newcastle |
| Utilities/month | $260 | $250 | Newcastle |
| Transport/month | $195 | $175 | Newcastle |
| Internet & Phone/month | $110 | $105 | Newcastle |
| Petrol/litre | $1.98 | $1.98 | Tie |
| Median house price | $1,050,000 | $850,000 | Newcastle |
| Median unit price | $620,000 | $620,000 | Tie |
| Cost of living index | 89 | 82 | Newcastle |
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 Newcastle saves you $4,320 per year compared to Melbourne. That is $360/month or $83/week.
Explore Each City
Frequently Asked Questions
Is Melbourne or Newcastle cheaper to live in?
Newcastle is cheaper to live in than Melbourne by approximately $4,320 per year. Newcastle has a cost of living index of 82 compared to 89 for Melbourne (Sydney = 100).
How much more do you need to earn in Melbourne compared to Newcastle?
You need to earn approximately $7,000 more per year (pre-tax) to maintain the same standard of living in Melbourne compared to Newcastle.
Is rent cheaper in Melbourne or Newcastle?
A 1-bedroom apartment costs $520/week in Melbourne and $450/week in Newcastle. Newcastle is cheaper for rent by $70/week.
Are groceries more expensive in Melbourne or Newcastle?
Weekly groceries for a single person cost $125 in Melbourne and $120 in Newcastle. Newcastle is cheaper for groceries.
Which city has cheaper property — Melbourne or Newcastle?
The median house price in Melbourne is $1,050,000 compared to $850,000 in Newcastle. Newcastle has cheaper property.
General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.