The cost of living in the USA in 2025 continues to vary widely across states and cities. Factors like rent, groceries, healthcare, and transportation significantly impact monthly budgets for individuals, professionals, and international students.
Understanding these expenses is crucial for Indians planning to study, work, or settle in the U.S., as living costs can differ drastically between high-cost cities like New York and affordable regions like Texas or Kansas.
In this guide, you’ll read more about the average cost of living in the USA, detailed breakdowns for Indians and students, a city-wise comparison of living costs, and insights on low-cost U.S. states. You’ll also find tips to manage expenses, a comparison between the USA and India, and practical budget examples to help you plan effectively for 2025.
The cost of living in the USA refers to the total monthly expenses needed to maintain a basic lifestyle, including housing, food, transportation, healthcare, utilities, and miscellaneous costs. Knowing these estimates helps students, professionals, and families budget accurately before moving.
Average Monthly Cost in 2025
Here is a table of the average monthly cost of living in the USA in 2025:
Expense Category
Average Monthly Cost (USD → INR)
Description
Housing (1-bedroom apartment)
$1,300
₹1,14,000
Rent for a single-bedroom apartment in a mid-range city.
Food & Groceries
$400
₹35,000
Groceries and occasional dining expenses.
Transportation (public/car)
$250
₹21,950
Local commute costs or car fuel and insurance.
Utilities + Internet
$180
₹15,800
Electricity, water, heating, and internet.
Health Insurance & Medical
$300
₹26,340
Basic insurance plan and medical visits.
Miscellaneous (entertainment, clothing)
$150
₹13,170
Leisure, clothing, and personal care expenses.
Note: INR conversions are approximate and may vary based on the currency exchange rates.
For Indian students and professionals, understanding the cost of living in the USA is crucial for effective budgeting. From rent and food to transportation and insurance, expenses can vary widely depending on the city and lifestyle choices.
Monthly Budget Breakdown for Indians
Here’s a breakdown of the average monthly expenses for Indians in the USA in 2025. This includes essential living costs like housing, groceries, health insurance, and entertainment.
Category
Average Monthly Cost (USD)
Cost in INR (approx.)
Housing (shared apartment)
$900
₹79,000
Food & Groceries
$350
₹30,700
Transportation
$200
₹17,560
Health Insurance
$250
₹21,950
Utilities & Internet
$150
₹13,170
Entertainment & Miscellaneous
$120
₹10,540
Total Estimated Monthly Cost
$1,970
₹1,73,000
Note: INR conversions are approximate and may vary based on the currency exchange rates.
For Indian students, the cost of living in the USA depends largely on accommodation type, location, and lifestyle. Living on-campus offers convenience but at a higher price, while off-campus options can be more flexible and budget-friendly.
On-Campus vs Off-Campus Costs
Here’s a comparison of average monthly living costs for Indian students staying on-campus and off-campus in 2025.
Expense Type
On-Campus Cost (USD)
Off-Campus Cost (USD)
Housing & Utilities
$1,200 (₹1,05,360)
$900 (₹79,020)
Food & Groceries
$400 (₹35,120)
$350 (₹30,730)
Transportation
$100 (₹8,780)
$200 (₹17,560)
Internet & Mobile Plans
$80 (₹7,020)
$60 (₹5,270)
Health Insurance
$250 (₹21,950)
$250 (₹21,950)
Miscellaneous & Entertainment
$150 (₹13,170)
$120 (₹10,540)
Total (Approx.)
$2,180 (₹1,91,000)
$1,880 (₹1,65,000)
Note: INR conversions are approximate and may vary based on the currency exchange rates.
Student-Specific Expenses
Apart from daily living expenses, Indian students in the USA also incur additional academic and campus-related costs. These typically include tuition materials, internet subscriptions, and healthcare services.
Typical Monthly Academic & Student Costs:
Textbooks and course materials: $80–$120 (₹7,000–₹10,500)
Laptop and software subscriptions: $40–$60 (₹3,500–₹5,300)
Health insurance coverage: $250–$400 (₹21,950–₹35,000)
Internet and phone plans: $50–$80 (₹4,400–₹7,000)
Budget Tips for Students:
Buy or rent used textbooks instead of new ones.
Use university-provided Wi-Fi to save on mobile data.
Opt for public transport passes for discounted travel.
Apply for student part-time jobs or campus assistantships.
These strategies help Indian students maintain a comfortable lifestyle while effectively managing their monthly budget in the USA.
The cost of living in the USA varies significantly between metropolitan cities and more affordable locales. High-cost cities can easily double national averages, while some regions offer a much friendlier budget for students, professionals, and families alike. Understanding city-specific figures in 2025 helps you target the right location for your stay.
High-Cost Cities
In cities such as New York, NY, San Francisco, CA, Los Angeles, CA and Boston, MA, housing costs, rent indices, and general living expenses are among the highest in the nation.
City
Est. Monthly Cost (USD)
Est. Monthly Cost (INR)
New York, NY
$3,200
₹2,81,000
San Francisco, CA
$2,900
₹2,55,000
Los Angeles, CA
$2,500
₹2,19,500
Note: INR conversions are approximate and may vary based on the currency exchange rates.
Affordable Cities
On the other hand, places like Austin, TX, Dallas, TX, Atlanta, GA, Pittsburgh, PA and Raleigh, NC offer significantly lower cost-of-living indexes. For instance, Austin has a cost-of-living index around 64 compared to New York’s 100.
These cities are popular for students and professionals seeking value while still accessing U.S. opportunities.
City
Average Monthly Cost (USD)
Average Monthly Cost (INR)
New York, NY
$3,200
₹2,80,960
San Francisco, CA
$3,000
₹2,63,400
Los Angeles, CA
$2,800
₹2,45,840
Austin, TX
$2,000
₹1,75,600
Dallas, TX
$1,900
₹1,66,820
Note: INR conversions are approximate and may vary based on the currency exchange rates.
The United States has several states where the overall cost of living is significantly lower than the national average. These regions offer affordable housing, low utility bills, and reduced transportation costs, making them ideal for students and families on a budget.
In 2025, the most affordable states include Mississippi, Oklahoma, Kansas, Arkansas, and Alabama, all known for their budget-friendly lifestyles.
State
Average Monthly Cost (USD)
Average Monthly Cost (INR)
Key Reason for Low Cost
Mississippi
$1,600
₹1,40,480
Low housing and utility rates
Oklahoma
$1,700
₹1,49,260
Affordable rent and local produce
Kansas
$1,750
₹1,53,650
Lower property and fuel costs
Arkansas
$1,720
₹1,51,016
Lower taxes and inexpensive healthcare
Alabama
$1,780
₹1,56,284
Cheaper housing and low commute expenses
These states maintain a low cost of living due to affordable housing markets, minimal state taxes, and accessible transportation. Moreover, smaller city populations help reduce rental competition, making it easier to manage day-to-day expenses for both locals and international students.
Cost of Living in USA vs India
The cost of living in the USA vs India varies widely due to differences in income levels, lifestyle standards, and currency value. While salaries in the U.S. are higher, everyday expenses like rent, food, and healthcare are significantly more expensive than in India.
Cost of Living Comparison – USA vs India (2025)
Expense Category
USA (USD)
India (INR)
Rent (1BHK in city)
$1,800 (₹1,58,040)
₹25,000
Groceries (monthly)
$400 (₹35,120)
₹10,000
Transportation (monthly pass)
$100 (₹8,780)
₹2,000
Healthcare (insurance + doctor visits)
$350 (₹30,730)
₹6,000
Entertainment (movies, dining, leisure)
$200 (₹17,560)
₹5,000
Utilities (electricity, internet, etc.)
$180 (₹15,804)
₹4,000
Currency and Purchasing Power Comparison
In 2025, the average exchange rate is approximately 1 USD = ₹87.80 INR (October 2025 estimate). Although the U.S. offers higher earnings, daily expenses are proportionally higher. For instance, a single person’s monthly cost of living in India averages ₹90,000–₹1,10,000, while in the U.S., it’s around ₹2,50,000–₹2,80,000.
The purchasing power in India remains stronger in local terms; basic necessities, transportation, and utilities are far more affordable. However, the U.S. provides access to advanced infrastructure, global education, and higher-quality services that justify its cost gap.
The cost of living in the USA in 2025 depends on several key factors such as location, lifestyle, income, and family size. Understanding these variables helps students and professionals estimate their monthly budgets more accurately before moving.
Here are the main factors that influence how much you’ll spend in the U.S.:
Location (City or State): Urban areas like New York or San Francisco have higher rents and food costs, while smaller cities and southern states are more affordable.
Housing Type: Living alone, sharing accommodation, or staying on-campus (for students) greatly affects rent and utilities.
Lifestyle Choices: Dining out frequently, entertainment, or owning a car can significantly raise expenses.
Transportation Options: Public transport is cost-effective, while personal vehicles involve insurance, fuel, and maintenance costs.
Healthcare & Insurance: Medical insurance is mandatory in most states and can be a major monthly expense.
Education & Tuition Fees: For students, university fees and materials add substantially to the total cost of living.
Exchange Rate Impact: A fluctuating USD-INR rate directly affects how much Indian students or immigrants spend monthly.
These factors combined determine the average cost of living in the USA for Indians and international students in 2025.
How Much Salary Is Enough to Live Comfortably in USA?
The salary required to live comfortably in the USA depends on the city, lifestyle, and family size. In 2025, a single person typically needs between USD 4,000–6,000 (₹3.3–5 lakh) per month to maintain a moderate lifestyle, while families may need USD 7,000–10,000 (₹5.8–8.3 lakh) monthly.
High-cost cities like New York or San Francisco demand higher earnings due to elevated rent and living expenses, while mid-tier cities such as Dallas or Atlanta allow a comfortable life on lower incomes.
Below is a table showing the average salary and ideal monthly budget in major U.S. cities:
City
Average Monthly Salary (USD / INR)
Ideal Monthly Budget (USD / INR)
New York, NY
$7,000 (₹5,81,000)
$6,000 (₹4,98,000)
San Francisco, CA
$7,500 (₹6,22,500)
$6,200 (₹5,15,000)
Los Angeles, CA
$6,000 (₹4,98,000)
$5,000 (₹4,15,000)
Austin, TX
$5,000 (₹4,15,000)
$3,800 (₹3,15,000)
Dallas, TX
$4,800 (₹3,98,000)
$3,600 (₹2,98,000)
Atlanta, GA
$4,500 (₹3,73,500)
$3,500 (₹2,90,000)
Chicago, IL
$5,500 (₹4,56,500)
$4,500 (₹3,73,000)
Seattle, WA
$6,200 (₹5,15,000)
$5,200 (₹4,32,000)
Note: Figures are approximate averages based on 2025 data from Numbeo, Payscale, and U.S. Bureau of Labor Statistics (BLS).
A salary that comfortably covers rent, healthcare, food, transport, and savings varies by region, but earning at least USD 60,000–75,000 annually is considered sufficient for most U.S. cities.
Tips to Reduce Living Expenses in the USA
Living in the USA can be expensive, especially for international students and newcomers. However, with smart planning and cost-saving habits, you can significantly reduce your monthly expenses while maintaining a comfortable lifestyle.
Here are some practical tips to manage and cut costs:
Share accommodation: Rent is the biggest expense; opt for shared apartments or student housing to save up to 40%.
Cook at home: Preparing meals instead of eating out can save around $150–$300 per month.
Use public transport: Monthly passes are cheaper than owning a car; many cities offer student discounts.
Shop smart: Use discount stores, coupons, and apps like Rakuten or Honey for groceries and essentials.
Choose affordable states or cities: Consider relocating to areas with lower housing and tax rates.
Use student benefits: Take advantage of university discounts, health plans, and free campus resources.
Monitor utility usage: Reduce electricity and water bills by managing heating, lighting, and appliance use.
Conclusion
The cost of living in the USA in 2025 varies widely depending on location, lifestyle, and financial choices. While major cities like New York and San Francisco remain expensive, states such as Texas, Georgia, and Oklahoma offer far more affordable living options.
For Indian students and professionals, monthly expenses typically range between $1,500–$3,000 (₹1.2–₹2.5 lakh), covering rent, food, utilities, and transportation.
Understanding factors like taxes, housing prices, and healthcare costs is crucial for effective budgeting. Choosing low-cost cities, sharing accommodation, and using student discounts can significantly reduce expenses.
Ultimately, with the right planning, living comfortably in the USA is possible for both students and working professionals, making it one of the most desirable destinations for career growth and global education.
FAQs on Cost of Living in USA for Students & Professionals
How does the cost of living in USA compare to Canada and Australia for Indian students?
USA is more expensive than Canada but similar to Australia in terms of rent and tuition fees. Living costs vary by city—New York, San Francisco, and Boston are expensive, while Texas, Ohio, and Arizona offer lower living expenses.
What is the minimum bank balance required for an F-1 student visa in USA?
Indian students must show proof of at least $20,000–$40,000 (₹16.5L–₹33L) in their bank account, depending on tuition and living expenses for one academic year.
How do Indian students manage high healthcare costs in USA?
Most students purchase university health insurance (costing $1,200–$3,000 (₹1L–₹2.5L) per year). Some choose private insurance plans for better coverage. Emergency care without insurance can be extremely costly.
What are the best student discount programs available in USA for transport, shopping, and dining?
Programs like UNiDAYS, Student Beans, and ISIC offer discounts on Apple, Amazon, Microsoft, and food delivery apps. Students also get public transport discounts in major cities.
What is the cost of renting an apartment near major universities vs. suburban areas?
Rent near universities in cities like New York, Boston, and San Francisco costs $1,500–$3,000 (₹1.2L–₹2.5L) per month. In suburban areas, students pay $800–$1,500 (₹66K–₹1.2L) per month for shared apartments.
How expensive is public transport in major US cities, and do students get discounts?
Public transport costs $75–$130 (₹6K–₹11K) per month in cities like New York, Chicago, and Washington, D.C. Many universities offer free or discounted passes for students.
What hidden costs should Indian students be aware of when renting an apartment in USA?
Security deposits (1–2 months’ rent), utility bills ($100–$200 (₹8K–₹16.5K) per month), renters' insurance, and broker fees are common extra expenses. Some apartments require furniture and WiFi setup.
Are prepaid or postpaid mobile plans better for Indian students in USA?
Prepaid plans like Mint Mobile ($15/month, ₹1,250) and Visible ($30/month, ₹2,500) are cheaper. Postpaid plans from T-Mobile and AT&T ($50–$70/month, ₹4K–₹6K) offer unlimited data and international calling.
What are the best ways for Indian students to save money on groceries and food?
Buying from Walmart, Costco, and Indian stores helps save money. Cooking at home reduces expenses to $200–$400 (₹16.5K–₹33K) per month, while eating out often costs $500+ (₹41K+) per month.
Is it better for students to buy a used car or rely on public transport in USA?
Public transport works well in cities like New York and Chicago, but in Texas, Arizona, and California, students may need a used car ($5,000–$10,000, ₹4.1L–₹8.3L) for convenience.
Are there specific neighborhoods where Indian students and professionals prefer to live in USA?
Yes, Indian students and professionals prefer Jersey City (NJ), Sunnyvale (CA), Edison (NJ), Schaumburg (IL), and Irving (TX) due to affordability and large Indian communities.
How does the cost of living in USA compare with India in terms of healthcare and education?
The cost of living in USA vs India is much higher when it comes to healthcare and tuition fees, as medical expenses and university costs in the USA are significantly more expensive.
What factors affect the average cost of living in USA apart from rent and groceries?
The average cost of living in USA also depends on healthcare insurance, mobile/internet plans, childcare, and lifestyle choices such as entertainment and travel.
Is the cost of living in USA for Indian students different in public vs private universities?
Yes, the cost of living in USA for Indian students varies as public universities often have affordable on-campus housing and meal plans compared to private universities located in costly metro areas.
Which are some low cost of living states in USA for families?
Some low cost of living states in USA like Mississippi, Oklahoma, and Arkansas are preferred by families for affordable housing, utilities, and schooling options.
Why is the cost of living in Australia vs USA important for international students to compare?
Comparing the cost of living in Australia vs USA helps students decide not only based on tuition fees but also on visa policies, part-time work opportunities, and post-study job prospects.
Is the cost of living higher in New York or California?
Both are expensive, but New York edges out California slightly due to higher rent and food prices. However, California’s gas and utility costs can also add to monthly living expenses.
How can Indians save money while living in the USA?
To reduce the cost of living in USA for Indians, share housing, cook meals, use public transport, and leverage student discounts. Opting for affordable cities like Austin or Atlanta helps cut living expenses further.
What is the average cost of living in USA for working professionals?
For working professionals, the average cost of living in USA ranges between $2,500–$3,500 (₹2.1–₹2.9 lakh) per month. This includes rent, food, utilities, transportation, and healthcare, varying significantly by state and lifestyle.
Do part-time jobs cover living costs for students?
Yes, part-time jobs can help Indian students manage their cost of living in USA, covering up to 40–50% of monthly expenses. Roles in libraries, cafés, or tutoring offer flexible hours and decent pay.
How do taxes impact the cost of living in USA?
Federal, state, and local taxes can reduce take-home pay by 15–30%, directly affecting the average cost of living. States like Texas and Florida have no income tax, making them more affordable.
How can upGrad Abroad help students manage study and living costs in the USA?
upGrad Abroad offers affordable study pathways, financial guidance, and personalized support for Indian students. It helps lower the cost of studying and living in USA by offering hybrid learning and flexible fee options.
upGrad abroad Editorial Team |2868 articles published
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