Average Cost Of Living In The USA In 2025

What’s the average living cost in the US? The average monthly cost of living in USA is about  US$1,194 (Numbeo) without rent. However, official university Cost of Attendance estimates show that, including rent, the monthly budget usually ranges from US$1,800-2,500 (₹1.5-2.1 lakh) depending on the city and lifestyle. There are several factors that influence the cost, like the type of Accommodation, Location, and Lifestyle. That’s before you even add rent, which can double your monthly budget in cities like New York or San Francisco. At the same time, the USA continues to attract Indian students. 331,602 Indian students studied in the USA in 2023-24 (Open Doors). As demand grows each year, competition for housing increases, and students should be prepared for higher rent, especially in big cities.

If you know the numbers in advance and learn how to manage your expenses, you can make your U.S. education affordable without sacrificing your student experience. With rising inflation and shifting economic conditions, managing your student budget in the U.S. has become more critical than ever. This guide provides a comprehensive breakdown of the key expenses for Indian students in the U.S. for the 2025-2026 academic year, offering actionable insights to create a realistic and manageable budget.

Key Highlights

Average Cost Of Living in USA For Indian Students

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To help you understand the cost of living in USA, here’s a realistic summary of monthly costs (excluding tuition) for an International Student in the USA. Below the table, we break down each category in detail: accommodation, transportation, food, utilities, health insurance & miscellaneous expenses.

Estimate Monthly Cost Breakdown

Accommodation

Finding a comfortable place can be challenging, and the rent also varies according to the type of accommodation and the location, like a private apartment in New York will cost way more than a shared one in Ohio. 

• Off-campus shared housing: US$500 – US$1,200/month depending on city. Big cities like New York and San Francisco are at the top end. Smaller towns might be much cheaper.
• On-campus dorms are often more structured but tend to be more expensive per square foot and offer less space.

Transportation

Daily transportation is a key consideration for anyone staying far from their university or workplace. It can significantly impact your expenses.

• If using public transportation (bus, metro, subway), expect US$60-120/month depending on distance and city.
• Many universities offer discounted or subsidised transit passes.

Food & Groceries

Food and groceries are something to be planned properly, as you need to plan your meals without compromising on the quality and nutritional value. 

• Grocery bills + occasional eating out / campus meals tend to range US$250-500/month depending on how often you eat out, dietary choices, and city.
• Cooking at home + sharing groceries helps reduce cost significantly.

Utilities, Internet & Mobile

Utility bills can affect a lot, based on the type of accommodation you choose. If you have roommates, you can share most of it, not making it hard on your pocket.

• Utilities (electricity, heating/cooling, water, waste) will vary: US$100-200/month depending on apartment size, AC/heating usage, & climate.
• Internet + mobile phone plans add US$40-80/month. High-speed internet or premium mobile plans cost more. This will be personal and can’t be shared, so take a plan and connection that works for you.

Health Insurance

Indian students will have to pay for health insurance prior to arrival in USA. Universities require health insurance for international students. The cost generally ranges from US$200 to US$2,000/year, depending on coverage and provider. (RG International)

• Some universities bundle insurance into student fees; others allow you to show proof of comparable private insurance to waive the mandatory plan.

Miscellaneous & Personal Expenses

Personal care can cost more than what we are used to in India. When you try to build a life abroad, it comes with socialising and unexpected expenses. So it’s ideal that you save up some part of your monthly expenses towards it.

• Books, supplies, personal care, clothing, laundry, entertainment, etc, might cost US$100-200/month depending on lifestyle.
• Always expect some unexpected expenses.

If you need further guidance and information regarding studies in the USA, download the Leapscholar app to get all your queries answered.

City-wise Cost Of Living in USA

The cost of living in the USA varies from city to city. The cost of accommodation, transportation, food, and other expenses can be higher or lower depending on the city you are living in. For example, the cost of living in San Francisco is much higher than the cost of living in Chicago. The cost of living in the USA can also vary depending on the lifestyle you choose. If you are looking for a luxurious lifestyle, you will need to spend more money than someone who is living a simple lifestyle. 

(Source: U.S. Census Bureau median rent data, official university Cost of Attendance, Cost of Living Index by State 2025)

• New York City: Among the costliest in the USA. The U.S. Census median rent is nearly US$1,800, while Columbia University suggests budgeting around US$1,465/month (12-month equivalent) for housing and food. Sharing accommodation is almost a necessity here.
• Los Angeles: Median rent sits at US$1,879, but UCLA’s official student budget (US$1,580/month on a 12-month basis) is slightly lower, reflecting shared dorms or student housing.
• San Francisco: The most expensive in this list, with ACS rent at US$2,419/month. The University of San Francisco still estimates student housing+food at US$1,545/month, highlighting the benefit of campus housing over private rentals.
• Chicago: More affordable, with median rents of US$1,380. Yet the University of Chicago’s budget is higher (US$1,736), partly due to campus dining plans and a premium location.
• Dallas: Median rents average US$1,403, making it relatively affordable compared to coastal cities. SMU’s COA (US$1,650/month) is slightly higher, reflecting structured meal plans and so on.

So basically, where you study in the USA directly affects your living expenses. So you have to be very careful while making a choice. Choosing Dallas or Chicago can save you nearly ₹50,000-80,000 per month compared to New York or San Francisco. It’s up to you and your choice of university. Always check your university’s official Cost of Attendance before applying and choose the city wisely.

Average Cost of Studying in USA for Indian Students

Studying in the USA is a big investment and also a huge part of living expenses if you’re an international student. But the cost can vary widely depending on your degree level and university type (public vs private). On average, undergraduate programs are the most expensive, while PhD programs can often be the most affordable, since many come with funding or scholarships.

On average, an Indian student should budget around ₹25-40 lakh per year for tuition and related academic costs in the USA. Choosing a public university, applying for or securing scholarships can cut this cost significantly. Know more about affordable Universities in the USA if you are looking for affordable universities.

Cost of living in USA vs India

Comparing USA vs India costs can get confusing, but knowing a few concrete numbers helps you see how far your rupee will go. Below is a table using available data to compare non-rent living expenses in both countries for typical students. After that, I explain what drives the difference and what to watch out for when budgeting.

Here is a table for a better understanding:

(Source: DBS, RG International, Careers360)

In summary, living in the USA (excluding rent) tends to cost about 2.5-3× more than in India for basic goods & services. But higher costs usually come with more consistent infrastructure, more choices, and often better safety/quality. For students from India, the biggest difference will be in transport, food, utilities, and health care. So when you’re planning your budget, don’t just convert tuition & rent. Make sure to add these “everyday costs” of at least ₹30,000-₹50,000/month (or more depending on city) just in case.

Tips To Make The Cost Of Living In The USA More Affordable

Living in the USA can be expensive, especially for international students who are studying abroad. However, there are several ways to make the cost of living more affordable. 

Here are some tips that can help:

Choose Affordable Housing

• Share an apartment with roommates or rent a single room instead of a full unit.
• Check university-affiliated housing boards or student Facebook groups.
• Savings: Up to US$400–$800 (₹33,200–₹66,400) a month compared to renting solo.

Plan and Track Your Budget

• Use apps like Mint or YNAB to track expenses.
• Allocate fixed amounts for essentials (rent, groceries, utilities) vs. discretionary spending.

Cook at Home

• Prepare meals instead of eating out regularly.
• Savings: $100–$300 (₹8,300–₹24,900) a month (depending on your cooking habits.

Use Public Transportation

• Opt for buses, subways, or student passes instead of owning a car.
• Cheaper and environmentally friendly; can save $150–$400 (₹12,450–₹33,200) a month on fuel, insurance, and parking.

Take Advantage of Student Discounts

• Many stores, restaurants, software providers, and entertainment venues offer student discounts.
• Keep your student ID handy or use apps like UNiDAYS (Apple student discount section) or Student Beans (an app offering discounts and freebies for students).

Earn While Studying

• Consider part-time jobs or internships to supplement your income.
• Gain valuable work experience and offset living expenses.

Avoid Unnecessary Expenses

• Delay buying expensive gadgets, clothes, or luxury items unless they are truly essential.
• Prioritize spending on needs over wants to stay within budget.

By following these tips, you can make the cost of living in the USA more affordable and manage your expenses effectively.

Final Thoughts

While the cost of living in the USA may be high, it is still worth considering if you have a dream of studying abroad. The USA offers a high standard of living, excellent education, and numerous job opportunities for graduates. While the cost of living may seem high at first glance, careful planning and smart budgeting can make it manageable. Cities like Dallas or Chicago can help you save significantly compared to New York or San Francisco, while choosing the right accommodation, cooking at home, and using public transport can further reduce expenses. Understanding the numbers before you arrive is half the battle. Knowing your monthly costs for rent, food, transportation, and other essentials ensures you won’t be caught off guard and can focus fully on your studies and student life.

If you’re ready to take the next step toward your US education and want personalized guidance on budgeting, scholarships, and choosing the right university, talk to our expert counselors today. Planning early gives you a financial edge and peace of mind, so you can enjoy the full experience of studying abroad without worrying about money.

If you’re considering other options like the UK, Canada and Australia, we’ve got you covered, too. Schedule a free consultation with our experts today for personalised guidance and advice.

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