'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.

Avoid the Trap: Rethink That Home Loan

Ahuja concludes with a simple but powerful piece of advice: “The easiest low-hanging effort you can make to solve this is to think twice before you sign up for a housing loan!”