'70 LPA is the New Middle Class': You will have nothing at the end of month if you have a home loan, warns banker
Even with an annual salary of Rs 70 lakh, you're still middle class in India — that’s the claim by investment banker Sarthak Ahuja, whose LinkedIn post has gone viral for exposing the harsh financial reality of metro life.
Rs 70 LPA = The New Middle Class?
Ahuja argues that despite a seemingly high income, you could end up with nothing left at the end of the month — especially if you’re carrying a home loan.Here’s how the numbers break down:
- Gross Income: Rs 70 lakh per annum
- Taxes: Rs 20 lakh
- Take-home: Rs 50 lakh annually (Rs 4.1 lakh per month)
From this monthly income, essential expenses eat up nearly everything:
- Home Loan EMI: Rs 1.7 lakh (Rs 2 crore loan on a Rs 3 crore flat, 20 years @ 8.5%)
- Car Loan EMI: Rs 65,000 (Rs 20 lakh car, 3 years @ 9%)
- Children’s International School Fees: Rs 50,000
- Domestic Help: Rs 15,000
Leftover: Just Rs 1 lakh for everything else.
Where That Rs 1 Lakh Goes
Ahuja breaks it down further:- Rs 25,000 for monthly savings toward a foreign vacation (Rs 3 lakh/year for a family of 3)
- Rs 25,000 for groceries
- Rs 25,000 for fuel, electricity, and utilities
- Rs 25,000 for shopping, dining out, healthcare, and contingencies
“By the end of the month, there's nothing left,” he warns.
The Middle-Class Trap: 3 Key Reasons
Ahuja identifies three main factors that are eroding wealth-building potential for salaried professionals in metro cities:- Exploding Urban Inflation: The cost of living in cities like Mumbai, Gurgaon, and Bengaluru has surged over the past three years.
- Soaring Real Estate & Vehicle Prices: Average homes cost 10–15x annual income in most cities. In Mumbai, it's over 30x.
- Lifestyle Pressures: Aspirational spending driven by social media exposure is pushing people to live beyond their means.