Last updated: June 25, 2026

Cost of Living Data

in Islamabad, Pakistan

Data powered by ERI's Geographic Assessor & Relocation AssessorERI's Database

Cost of Living Information

Islamabad Cost of Living Index

Is Islamabad an expensive place to live?

The cost of living index is calculated based on accumulating the cost of food, transportation, health services, rent, utilities, taxes, and miscellaneous.

Cost of Living compared to National Average

Below Average

Average

Above Average

+ 15%

The ranking of cities is based on every single city in Pakistan

Cost of Living Comparison Calculator

Use our cost of living calculator to compare the cost of living between different locations and utilize our cost of living information to research living expenses in various areas.

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Assumptions Used to Calculate the Average Cost of Living in Islamabad:

Salary$72,000Edit

House SizeTwo Bedroom AptEdit

Family SizeFourEdit

Ownership vs. RentRentEdit

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Affordability Breakdown

Below Average

Average

Above Average

Food

Transportation

Housing

Health

The following are collected for use in calculating cost of food: meats, dairy products, produce, bakery products, miscellaneous grocery products, fast food, and average casual restaurant.

The data used to calculate the cost of food score is a sample of data pulled from ERI Economic Research Institute' Relocation Assessor. For a more detailed food price index, please try a free demo of the cloud-based Relocation Assessor.

The cost of transportation score uses local data on commuting patterns and city dispersion combined with fuel cost factors, public transportation, and efficiency patterns of public transportation in relationship to a transportation price level index. A relative cost of airline travel component is also included. In major cities, where parking is a substantial cost, estimates are included for parking expenses during regular business hours.

Transportation factors also include the yearly total cost of operating automobile(s) and/or equivalent commuter expense for ten miles.The cost of operating an automobile defaults to 20 miles round trip daily, maintenance, taxes and licensing fees, insurance, gasoline costs including taxes, etc.Costs vary according to changes to number of vehicles, combined value and combined prose, and annual mileage/kilometers.Sources include IRS allowed reimbursement policies, local gasoline, insurance, licensing and maintenance/service prices.

The data used to calculate the cost of transportation score is a sample of data pulled from ERI Economic Research Institute's Relocation Assessor. For a more detailed transportation price index, please try a free demo of the cloud-based Relocation Assessor.

The following are collected for use in determining the cost of housing score: square footage, monthly rent, home prices, and utilities.

For the estimated monthly rent prices, data on average and median rent price per square foot on a 900 square foot (2 bed room), unfurnished higher-quality apartment is collected.Estimated apartment rental prices assume a standard lease (usually 1-year) is signed.The same geographic assumptions and data standards used for home prices are applied to data collection and survey procedures.Utilities are estimated based on costs for common heating/cooling/sources of energy for the location. Water and sewer cost estimates are also included.

The data used to calculate the cost of housing score is a sample of data pulled from ERI Economic Research Institute's Relocation Assessor. For a more detailed housing price index, please try a free demo of the cloud-based Relocation Assessor.

The following are collected for use in the health care grade estimate: a "check-up" to a primary care physician, a regular cleaning with a dentist, and the cost of a widely prescribed non-generic pharmaceutical drug.

Health care services include out-of-pocket costs for the employee and carrier zone rates by location, along with hospital costs. They are based primarily upon group medical benefits as tracked by national carriers and in-house methodology. Health care services vary by family size.

The data used to calculate the cost of health care score is a sample of data pulled from ERI Economic Research Institute's Relocation Assessor. For a more detailed health care price index, please try a free demo of the cloud-based Relocation Assessor.

In this graph, we break down the overall cost of living into some of the major contributing factors. ERI downloads housing sales data from commercially available sources. Gasoline, consumables, and medical care premium costs are also collected from authoritative online databases. ERI research staff then audits these sources to help aid them in finding the cost of living compared to other locations.

Area Information

Islamabad

Average Salary

Rs 1,936,390 (PKR) YearlyRs 931 (PKR) Hourly

Calculate your salary based on job title, location, and experience.

Notes

About Islamabad

Description: Islamabad is the capital city of Pakistan. It is the country's tenth-most populous city with a population of over 1.1 million; and is federally administered by the Pakistani government as part of the Islamabad Capital Territory — with a metropolitan population of over 2.3 million. Built as a planned city in the 1960s and established in 1967 along the Margalla Hills, Islamabad replaced Karachi as Pakistan's national capital. It is located north of the city of Rawalpindi, the largest in northern P...

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FAQs

What is a cost of living index?

A cost of living index is a broad measurement of the cost of different expenses expected by the average person living in a certain location. Some of the categories tracked include health care costs, transportation, housing, groceries, and more. These numbers are tracked in specific locations to gauge how much it costs to live in a certain area over time.

Another good way to interpret this general number is to ask the question, "How many goods and/or services does a specific amount of money purchase in a given location?" An easy example would be that $100 goes further in Reno, Nevada, than it does in San Francisco, California. The goods and services tracked are need-based, meaning entertainment and other incurred expenses not required to live in a certain area are not tracked.

The main purpose of a cost of living index is to help a person quickly decide if moving from one location to another will increase or decrease quality of life.

How did we calculate our cost of living index?

Cost of living data are derived from ERI's cost of living surveys and web digitization of public domain records. Data are comprised of health care, transportation, housing, and grocery costs, which are then averaged out across the county. On the graphs above, the "0" represents the country’s average. The percentage can either be lower, expressed by a negative number, or higher than the national average, expressed by a positive number. The important part to remember is the locations are compared to an average of other locations.

What is cost of labor?

Cost of labor may sound like cost of living, but it refers to the price of labor as opposed to the cost to living in a location. Cost of labor refers to all the upfront costs that an employer must pay when hiring work from a particular area. This factors in costs such as the payroll taxes and required benefits when hiring from a particular location. This number is displayed as a percent average higher or lower than the national average. To see the cost of labor data for a particular location, please fill out this quote form with your location of interest.