Cost Of Living For a Family in Tehran 2024

Average monthly spending for families in Tehran

We consider a family to be a member of four members, two adults and two children. This is the most common type of family. From the figures below, it should be fairly easy to calculate the average spending for families of different sizes.

How much money does a family need in a month to survive in Tehran?

Families in Tehran spend around 42M IRR per month on average. Depending on the lifestyle, a family can survive with a monthly budget as low as 15M IRR or as high as 270M IRR. Location and income are very important factors and have a huge influence on expenditure and budget.

Family expenditure to income ratio in Tehran

Analysing the how affordable it is for families to live in Tehran

One of the most definite ways to determine how affordable a place is measuring the ratio of expenses to salary. A high expense-to-income to ratio indicates a high cost-of-living index while a low expenditure-to-salary ratio means the place is affordable to live in. Families usually spend a larger chunk of their income than other population groups. A typical and healthy expenditure percentage for a family of four ranges between 70% to 80%.

Families in Tehran spend around 100% of their monthly income. Some families spend as low as 93% of their income while some as high as 110%.

How do families spend their money in Tehran?

We asked thousands of families about their spending habits and expenditure break down.

Housing and accomodation expenditure for families

Families in Tehran typically spend from 20% to 35% of their total monthly expenditure on housing with 25% being the average. The average monthly spend on housing is 13M IRR with expenditure ranging from 4.7M IRR to 88M IRR. This cost mainly goes for rent but it also includes other accommodation-related expenses.

Electricity, utilities, energy, water, internet, and mobile expenditure for families

Utility expenditure like electricity, water, and gas in Tehran ranges from 4% to 9% of total expenses with 6% being the average for most families. The average monthly cost of utilities is 2.1M IRR with 740,000 IRR and 14M IRR being the upper and lower limits for a family of four.

Transport, fuel, and commute expenditure for families

Fuel consumption and cost of transport depend heavily on whether a family resides near school and work, but roughly speaking a family would expect to spend from 1.5M IRR to 27M IRR in a month on commuting with 4.2M IRR being the norm for most families. This means that money spent on transport constitutes about 5% of total spending on average but can go as low as 3% or as high as 7%.

Food, groceries, and basic shopping expenditure for families

The average outlay on groceries and basic houshold items for a typical family in a month in Tehran is 7.6M IRR. The cost of groceries can range between 2.7M IRR to 49M IRR. Families spend on average about 21% on food and groceries with upper and lower bounds of 14% and 27% respectively.

Healthcare and medical services expenditure for families

Families in Tehran allocate 7% to 16% of their total monthly expenditure to healthcare including health insurance and out-of-pocket medical expenses. The average spending on medical services and clinic visits is around 11%. The range of medical expenses range from 1.3M IRR to 22M IRR with 4.2M IRR being the norm for most families.

Leisure and shopping expenditure for families

This category mostly contains discretionary or non-essential expenses but also some non-discretionary spending like furniture for example. The monthly expenses range from 740,000 IRR to 14M IRR with 2.1M IRR being the average. Speaking of percentages, that equates to 1% to 6% of total expenses with an average of 2% for most families.

Education and schooling expenditure for families

Spending on education can vary drastically between different families. On average, education constitutes 13% of the monthly expenditure of families with 6% and 21% being the lower and upper bounds respectively. The average reported education cost is 5.9M IRR per month with 2.1M IRR being the minimum spent amount and 38M IRR being the maximum.

What percentage of families in Tehran are able to save money and how much can they save?

Percentage of families that reported their ability to save money

Almost 54% of surveyed families in Tehran said that they can save some money at the end of each month while 47% reported that they have to utilize their whole income to survive.

How much money do families manage to add to their savings?

Saving to Income Ratio

Average Monthly Saved Amount

Savings to income distribution levels for families

Interpretation and Analysis

Families that are able to save money can put anywhere from 9.9% to 30% of their monthly income to their savings, with 17% being the average for most families. The average monthly amount of money that families can put aside is 13M IRR with 4.5M IRR and 84M IRR being the minimum and maximum respectively.

Saving Challenges in Tehran

Reasons that make it difficult for families to save money

We wanted to understand what is stopping families from maximizing their savings in Tehran. Listed below are the answers given by the survey participants.

Around 5% of the families said that their salary is too low to accommodate a portion for savings while 8% said that the high cost of living leaves little room for savings. 13% of the residents said that they are burdened with debt and find it challenging to save money. 12% reported that they just don't have the knowledge or discipline to create and stick to a budget, leading to overspending and an inability to save. 12% of families blamed impulsive spending as the reason for saving inability. Around 7% said that unexpected expenses like medical bills or car repairs are derailing their savings goals. 5% bluntly said that they don't see the purpose of it and prefer to live each day to the fullest. 21% reported that they understand the value of saving but are putting off saving for the future, thinking they have plenty of time to start later. 13% blamed inflation, saying that every time they save some money they end up using it immediately. A surprising 3% said that social pressure and keeping up with peers or social expectations makes them overspend. Lastly, 2% blamed market instability and price fluctuations.

Typical saving choices for families in Tehran

Where do people choose to put their savings?

A typical and healthy budgeting structure

The 50/30/20 rule

Spending among different people can vary significantly based on factors such as their income, lifestyle, location, and personal preferences. A commonly used guideline for budgeting is the 50/30/20 rule, which suggests allocating your income into three main categories in the following percentages.

• 50% for needs and financial obligations

  This category includes essential expenses like housing, utilities, groceries, transportation, and healthcare.

• 30% for wants and discretionary spending

  This category covers discretionary spending on non-essential items, such as dining out, entertainment, travel, and other lifestyle choices.

• 20% for savings and emergency fund

  This is the percentage that must be allocated to savings, emergency funds, and retirement accounts.

About financial planning, money management, and household budgeting

Affordable living in Tehran

Income and cost of living compatibility

We asked families one simple question and recorded their answers.

Is it affordable or economical to live in Tehran?

Around 58% of surveyed families think that living in Tehran is affordable with proper budgeting while 43% reported that it is just too expensive and not affordable even with frugality and thriftness.

Low-cost alternatives in Tehran

People are always looking for ways to cut down expenses and reduce expenditures. The hallmark of any affordable place is the availability of discount stores, bargain deals, smart or secondhand shopping, refurbished items, and couponing. We asked families how easily cost-cutting is and the answers were distributed as follows:

Plenty of low-cost options63%

Few low-cost options37%

Based on the survey, 63% of the families living in Tehran have no problem finding low-cost alternatives to support a frugal lifestyle while 37% think that thriftness is difficult due to scarcity in discount markets and secondhand outlets.

Emergency Funds For Families

An emergency fund is a financial safety net comprised of easily accessible savings set aside to cover unexpected expenses or financial emergencies, typically amounting to three to six months' worth of living expenses. We asked families of Tehran whether they have an emergency fund and the answers were as follows.

Yes58%

No43%

Based on the survey, 43% of the families living in Tehran said that they don't have an emergency fund while 58% said that they do.

Financial Literacy in Iran

Financial literacy is the knowledge of concepts and principles related to personal finance that allow individuals to make informed decisions regarding their money such as budgeting, saving, investing, borrowing, managing debt, financial risk management, and planning.

Financial Leteracy47%

We asked family guardians and parents in Tehran whether they acquired any adequate personal financial training in their lives. Approximately 53% of the people who participated in the survey said that they are not well informed about the topics of budgeting, saving, etc., and just manage things based on their own experience, while 47% said that they know about the general principles of personal finance from sources other than their own experience.

Difficulty in Budgeting and Financial Planning

We wanted to understand whether families of Iran have problems or difficulties in managing their expenditures and savings so we asked people one simple question: do you struggle with your personal finances? 43% of the participants reported that they indeed struggle in creating budgets and in organizing their finances while 57% said that they have everything under control.

Struggles with finance43%

Easily manages finances57%

Financial goals of families in Tehran

In an attempt to understand the economic situation in Tehran, we asked participants about their financial targets. By knowing what the population in general is trying to achieve, we can shed light on the economic outlook, cost of living, and quality of life in general.

Around 8% of families said that their main goal is to establish an emergency fund to cover unexpected expenses while 43% said their number one priority is to pay off high-interest debt or loans and improve credit. 10% of surveyed people confirmed that saving for retirement to ensure a comfortable lifestyle in the final years is their main target. Around 7% reported that their priority is saving for the tuition fees and education costs of their children while 18% choose to buy a home or pay off existing mortgage before other things. 6% of the population would like to build wealth through investments such as stocks, bonds, mutual funds, or real estate. For 6% of people, saving for vacations or upgrading their lifestyle is the number one concern. Approximately 14% of the residents said that saving for healthcare expenses including insurance premiums is their main goal.

Debt, loans, and mortgages in Tehran

Percentage of families who are in debt

According to the survey, 30% of the families in Tehran have some kind of debt, loan, mortgage, or credit card payments while 70% reported that they don't have financial obligations to banks.

Debt-to-income ratio in Tehran

Interpretation

The debt-to-income ratio measures the percentage of income being paid as debt settlement across the population. It is calculated by dividing the monthly debt settlement payment of an individual by their monthly income. Based on collected data, approximately 34% of a family's monthly income in Tehran goes to debt settlement.

Debt levels

Monthly debt settlement payment as percentage of monthly income

According to our data, 3% of the debtors in Tehran pay 60%+ of their income as debt settlement while 18% of the people pay 50% to 60% of their income for the same, which is quite an alarming financial situation for those individuals. 15% of people in debt dedicate 40% to 50% of their income to loan and mortgage payments while 17% dedicated 30% to 40% of income for same. Things are looking brighter for 10% of individuals as they only pay 20% to 30% of their income for loan and credit card repayment.

Distribution by type of debt in Tehran

8% of debtors in Tehran confirm that real estate mortgages constitutes the main part of their outstanding debt while 30% say that credit card payments are the reason they are in debt. Auto loans were the main type of debt for 15% of people and personal loans rose at 43%. Lastly, student loans are the main source of debt for 4% of debtors in Tehran.

Good debt vs. Bad debt

Not all debt is bad. Good debt typically refers to borrowing money for investments that can increase in value or generate income over time like purchasing a home or acquiring student loans. On the other hand, bad debt involves borrowing for things that fail to generate lasting value like high-interest credit card debt used for non-essential expenses like luxury items or vacations.

Loan Affordability Index in Tehran

Besides measuring the loan-to-income ratio, we asked families of Tehran how many times in a year they defaulted or were unable to pay their due credit card or loan payments on time. Understanding how often people default on their due payments is one of the indicators of the cost of living and economic situation.

Frequency and percentage of people who failed to pay their monthly credit card or loan payments on time last year.

Housing costs, accommodation, and housing affordability in Tehran

Rent Cost in Tehran

Monthly Rent Prices

Studio apartment monthly rent cost

2.3M IRR

3.4M IRR

9.2M IRR

MINIMUM

AVERAGE

MAXIMUM

$55

$82

$220

1-bedroom apartment monthly rent cost

3.4M IRR

5.5M IRR

14M IRR

MINIMUM

AVERAGE

MAXIMUM

$82

$130

$330

2-bedroom apartment monthly rent cost

4.6M IRR

6.9M IRR

18M IRR

MINIMUM

AVERAGE

MAXIMUM

$110

$160

$440

3-bedroom apartment monthly rent cost

5.5M IRR

9.2M IRR

25M IRR

MINIMUM

AVERAGE

MAXIMUM

$130

$220

$600

Furnished apartment monthly rent cost

11M IRR

28M IRR

55M IRR

MINIMUM

AVERAGE

MAXIMUM

$260

$660

$1,300

Townhouse monthly rent cost

9.2M IRR

14M IRR

39M IRR

MINIMUM

AVERAGE

MAXIMUM

$220

$330

$940

House monthly rent cost

11M IRR

28M IRR

55M IRR

MINIMUM

AVERAGE

MAXIMUM

$260

$660

$1,300

Villa monthly rent cost

14M IRR

34M IRR

55M IRR

MINIMUM

AVERAGE

MAXIMUM

$330

$820

$1,300

The monthly rental cost of a studio apartment in Tehran ranges between 2.3M IRR and 9.2M IRR, meanwhile the cost of monthly rental of a one-bedroom apartment can be anywhere from 3.4M IRR to 14M IRR. Two-bedroom rentals rate ranges between 4.6M IRR and 18M IRR per month. The monthly rental for a three-bedroom apartment ranges from 5.5M IRR to 25M IRR. The average rent of a townhouse in Tehran is around 14M IRR while house rental costs can be as high as 28M IRR per month. Finally, if you want to rent a villa, expect to pay anywhere from 14M IRR to 55M IRR per month.

Apartment and house prices in Tehran

Cost of buying a property

Studio apartment price

460M IRR

690M IRR

1,400M IRR

MINIMUM

AVERAGE

MAXIMUM

$11,000

$16,000

$33,000

1-bedroom apartment price

550M IRR

920M IRR

3,400M IRR

MINIMUM

AVERAGE

MAXIMUM

$13,000

$22,000

$82,000

2-bedroom apartment price

920M IRR

2,800M IRR

5,500M IRR

MINIMUM

AVERAGE

MAXIMUM

$22,000

$66,000

$130,000

3-bedroom apartment price

3,100M IRR

4,600M IRR

14,000M IRR

MINIMUM

AVERAGE

MAXIMUM

$73,000

$110,000

$330,000

Townhouse price

3,900M IRR

9,200M IRR

34,000M IRR

MINIMUM

AVERAGE

MAXIMUM

$94,000

$220,000

$820,000

House price

4,600M IRR

28,000M IRR

39,000M IRR

MINIMUM

AVERAGE

MAXIMUM

$110,000

$660,000

$940,000

Villa price

5,500M IRR

31,000M IRR

46,000M IRR

MINIMUM

AVERAGE

MAXIMUM

$130,000

$730,000

$1.1M

The average price of a studio apartment in Tehran can range from 460M IRR to 1,400M IRR depending on location. One bedroom cost can be anywhere from 550M IRR to 3,400M IRR. A villa can cost you 31,000M IRR on average with prices ranging from 5,500M IRR to 46,000M IRR.

House / apartment prices to income ratio

Property prices in Tehran can be x99 to x214 multiples of the monthly income depending on the property and the income of the person. On average, property prices are approximately x99 multiples of the average monthly salary in Tehran.

Rent to income ratio

The average rent-to-income ratio in Tehran is around 32%. This means that people pay 32% of their income for rent. Those figures can range from 21% to 43% depending on the salary, location, and type of property.

Housing affordability index

The housing affordability index measures how affordable accommodation is in a particular place. This can measured in multiple ways, the most common being housing expenditure to total expenditure ratio and the rent to income ratio. The housing expenditure ratio is a figure reported by individuals on the percentage they allocate for housing. Rent to income ratio is calculated by dividing the average monthly rent by the average income. Because these values are both percentages, we can find their average and get the best of the two worlds.

Property Taxes

Real estate owners pay property taxes to local tax authorities, which are determined by the assessed value of their property. Typically, these taxes are paid once a year. Property tax funds contribute to community development, financing infrastructure improvements, public services, and local education initiatives.

Home Maintenance Costs

Home maintenance costs encompass various expenses associated with the upkeep and repair of a residence. These expenditures include regular tasks such as lawn care, pest control, and HVAC system servicing, as well as occasional repairs and renovations like fixing leaks, painting, or replacing appliances.

Urban vs. rural living costs

Urban living typically entails higher housing and transportation costs due to demand and limited space, while rural areas generally offer lower housing expenses but may have higher prices for goods and services. The differnce in rental rates between urban areas and rural areas can be as high as 300% in some cases.

Monthly costs and expenses of energy and basic utilities in Tehran

Energy, electricity, water, gas, internet, and mobile cost in Tehran

Utility Bill Cost / Electricity + Water + Gas / Family

740,000 IRR

2.1M IRR

14M IRR

MINIMUM

AVERAGE

MAXIMUM

$18

$50

$330

Internet and cable cost

130,000 IRR

250,000 IRR

330,000 IRR

MINIMUM

AVERAGE

MAXIMUM

$3

$6

$7.9

Mobile phone bill and charges

100,000 IRR

170,000 IRR

500,000 IRR

MINIMUM

AVERAGE

MAXIMUM

$2.4

$4

$12

The average monthly energy and water consumption of families is around 2.1M IRR. The cost of internet and WiFi ranges from 130,000 IRR to 330,000 IRR with 250,000 IRR being the average internet bill. Finally, the average monthly mobile charges is around 170,000 IRR but can range between 100,000 IRR and 500,000 IRR depending on consumption. Mobile charges include both calling minutes as well as data packages.

Energy / Utility expense to income ratio

The average utility-to-income ratio in Tehran is around 6.6%. This means that people pay 6.6% of their income for energy, water, internet, and mobile charges. Those figures can range from 3.3% to 11% depending on salary and location.

Food Prices, Dining Expenses, and Grocery Costs in Tehran

Prices and cost of goods and services in Tehran

Dining out, food, and beverages costs. Price variations for common food items.

Fast food combo meal price

25,000 IRR

50,000 IRR

84,000 IRR

MINIMUM

AVERAGE

MAXIMUM

$0.60

$1.2

$2

The average price of a regular combo meal at a fast food outlet or chain like McDonald's, Pizzahut, or KFC in Tehran is approximatly 50,000 IRR with meal cost ranging from 25,000 IRR to 84,000 IRR. The typical combo meal consists of a burger, french fries, and a drink.

Restaurant meal for one price

88,000 IRR

130,000 IRR

260,000 IRR

MINIMUM

AVERAGE

MAXIMUM

$2.1

$3.1

$6.3

If you are planning to have a nice meal at a mid-range restaurant, expect to pay anywhere between 88,000 IRR and 260,000 IRR with 130,000 IRR being the average price of a plate for one person at a regular restaurant in Tehran.

Fine dining meal for one price

180,000 IRR

260,000 IRR

1.1M IRR

MINIMUM

AVERAGE

MAXIMUM

$4.2

$6.3

$25

The price range of a meal at fine-dining restaurant is 180,000 IRR to 1.1M IRR with the average cost being 260,000 IRR for one person. This is what you would expect to pay a top-tier diner in Tehran.

Beverage prices, cappuccino, latte etc..

21,000 IRR

33,000 IRR

50,000 IRR

MINIMUM

AVERAGE

MAXIMUM

$0.50

$0.79

$1.2

The average price of a regular beverage like cappuccino or latte at Starbucks, Costa, or similar coffee shops and cafes in Tehran is around 33,000 IRR. Price ranges between 21,000 IRR and 50,000 IRR depending on the type of beverage, the size, and optional add-ons.

Grocery and market costs

Large bottle of milk price

17,000 IRR

20,000 IRR

25,000 IRR

MINIMUM

AVERAGE

MAXIMUM

$0.40

$0.48

$0.60

The average price of a large bottle of milk in Tehran is 20,000 IRR. The maximum what you would pay for milk is 25,000 IRR and the minimum being 17,000 IRR depending on the brand of milk and other properties.

12 eggs price

13,000 IRR

17,000 IRR

25,000 IRR

MINIMUM

AVERAGE

MAXIMUM

$0.30

$0.40

$0.60

A dozen eggs costs around 17,000 IRR on average with 13,000 IRR and 25,000 IRR being the lower and upper limits respectively.

Fresh whole chicken price

28,000 IRR

37,000 IRR

52,000 IRR

MINIMUM

AVERAGE

MAXIMUM

$0.68

$0.88

$1.2

The price range of a fresh whole chicken in Tehran is between 28,000 IRR and 52,000 IRR depending on the size of the chicken and whether it is oraganic or not. The average price is approximatly 37,000 IRR.

Pack of beef price

33,000 IRR

50,000 IRR

100,000 IRR

MINIMUM

AVERAGE

MAXIMUM

$0.79

$1.2

$2.4

The price of a regular pack of beef or meat is around 50,000 IRR. A pack of beef contains around 1Kg or 1lb depending on packing.

Medium bag of rice price

13,000 IRR

18,000 IRR

26,000 IRR

MINIMUM

AVERAGE

MAXIMUM

$0.32

$0.44

$0.62

A bag of rice in Tehran costs around 18,000 IRR on average with prices rangeing between 13,000 IRR and 26,000 IRR depending on the brand and quality.

Bag of tomatos price

5,000 IRR

6,700 IRR

13,000 IRR

MINIMUM

AVERAGE

MAXIMUM

$0.12

$0.16

$0.30

A bag of tomatoes costs anywhere from 5,000 IRR to 13,000 IRR. A bag of tomatoes denotes 1Kg or 1lb depending on location.

Bag of apples price

9,000 IRR

12,000 IRR

19,000 IRR

MINIMUM

AVERAGE

MAXIMUM

$0.21

$0.28

$0.46

A bag of apples costs 12,000 IRR on average. A bag of apples denotes 1Kg or 1lb depending on location.

Grocery and food expenditure to income ratio

The average grocery-to-income ratio in Tehran is around 30%. This means that families spend 30% of their income on grocery and basic household items. The expenditure can range from 21% to 37% depending on salary and location.

Expenditure on food and grocery for families