What ₹20 LPA Actually Feels Like in India

Young professionals chasing the '20 LPA' milestone thinking it means wealth.

P. Mishra — December 2025

The Expectation

I will be rich. I will fly business class, eat out daily, and save huge amounts for early retirement.

The Reality

₹20 LPA is the new ₹10 LPA.

In-hand is ~₹1.2L after taxes.
- Rent (Metro City): ₹35k
- EMIs (Car/Edu): ₹25k
- Lifestyle/Food: ₹30k

You are left with ₹30k savings. One medical emergency or family obligation wipes it out.

You are comfortable, but you are not rich. You are strictly middle class with better Instagram photos.

Salary & Growth Reality

CTC	In-Hand	Lifestyle Tier
10 LPA	₹70k	Survival (Metro)
20 LPA	₹1.2L	Comfortable Middle
50 LPA	₹2.8L	Upper Middle

*Real wealth starts at ₹50 LPA or equity ownership.

Where Most People Get Stuck

Lifestyle Inflation.

As soon as you hit 20 LPA, you upgrade your flat, buy an iPhone Pro, and get a car. Your savings rate often *drops* because your desires grow faster than your post-tax income.

Who Should Avoid This Path

Anyone who thinks earning ₹1.5L/month means you can buy a luxury car and a 3BHK simultaneously.

Final Verdict

Stop celebrating the CTC number. Calculate your 'Savings Rate'. If you aren't saving 50% of your in-hand, you are poor.

                Last Updated: December 2025
            