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Compared to some other major European countries, the cost of living in Germany is quite reasonable.

As the bare minimum, a single person (e.g. a student) in Germany needs at least €992 per month (around $1,040 US dollars) or €11,904 per year to cover living expenses in Germany as of 2024.

If you’re a family of four, you can expect to spend an average of €3,389 per month (around $3,649 US dollars), excluding rent.

However, Germany is large—there are 16 federal states (Länder) and around 11,000 municipalities. So, prices may vary a lot from one place to another, which is why it’s important to dive a little deeper to understand the cost of living.

As you read further, we will cover the cheapest and most expensive regions, cost of accommodation, food, transportation, and other important expenses in different German cities. You’ll also find a side-by-side comparison of German prices versus the United States and India.

Which Region Has the Highest Cost of Living in Germany?

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The South of Germany Is the Most Expensive: Munich & Stuttgart

Generally speaking, the south of Germany is the most expensive region in Germany in terms of living costs. In this region, Munich and Stuttgart are two major cities where the cost of living is the most expensive.

For example, the average rental one-bedroom apartment in Stuttgart city center will cost you €1,115. A similar apartment in the northern German city of Bremen costs €811 on average.

Percentage-wise, this means that renting an apartment in Bremen is 27% cheaper than in Stuttgart.

Berlin Remains Cheaper Than Other European Capitals

Berlin, the capital of Germany, is getting more and more expensive to live in due to the . The average cost of renting a small one-bedroom apartment in the city is currently about €1,220 per month.

Berlin is still more affordable than many other major European capitals, though. Rent prices here are 19.0% lower than in Paris, 54.3% lower than in London, 38.0% lower than in Amsterdam, and 50.0% lower than in Zurich.

Saarbrucken, Dresden, Leipzig Among the Most Affordable in Germany

Other eastern German cities around Berlin are mostly cheaper than their counterparts in the south. Leipzig and Dresden are, in fact, some of the most affordable cities to live in Germany.

For example, rent in Leipzig is cheaper than in Stuttgart by over 35%, albeit their population size is similar. Dresden as well, is similar in size, and rent costs 34.1% less than in Stuttgart.

Saarbrucken is the cheapest among major cities. It’s smaller in population size (around 180,000 inhabitants), but compared to Heidelberg (which has an even smaller population size), rent is 51.4% lower.

The Priciest Cities Within Each Zone: A Comparison

Another way to compare the cost of living in different German regions is by looking at the largest cities in Germany’s main metropolitan areas.

• Hamburg
• Berlin
• Cologne (Rhine-Ruhr)
• Frankfurt (Frankfurt/Rhine-Main)
• Munich

Let’s compare some typical expenses to get a clearer picture:

Source: Numbeo

Based on these categories, Munich and Frankfurt share the top spot for the most expensive, followed by Cologne, Berlin, and Hamburg.

However, the biggest chunk of monthly expenses for the average German goes to rent.

In this category, these cities rank as follows (from most expensive to least):

1. Munich
2. Frankfurt
3. Berlin
4. Hamburg
5. Cologne

*We calculated the cost of a grocery bill with these items: 1L milk, 1 loaf of white bread, 1kg white rice, 12 eggs, 1kg chicken fillets, 1kg apples, 1kg bananas, 1kg tomatoes, 1kg potatoes, 1kg onions, 1 head lettuce, and a 0.5L bottle of local beer.

What Is the Average Rent in Germany?

Renting an apartment in Germany can start from €486 per month in a cheaper city like Saarbrucken and up to €1,436 in Munich. Taking into account all major cities, the average rent across Germany is around €892 per month (see list below).

When we label a particular place as an expensive one to live in, rent is the biggest factor. This is why bigger cities such as Munich, Berlin, Hamburg, and Frankfurt are considered more expensive than Essen or Saarbrucken.

Location and size also make a difference in rent costs. For example, if you’re eyeing a one-bedroom apartment in the heart of the city, rent can cost anywhere from €600 to €1,500. If you want a bigger, fully furnished place in the same area, you’ll be paying even more. The average rent for these can cost from €1,100 to €2,800 per month.

Many people in Germany choose to live further from city centers to save on rent. A one-bedroom apartment in these areas will cost you from €430 to €1,218 per month.

Take a look at the average rent in German cities, from the most expensive to the cheapest as of 2025:

Source: Numbeo

Important note: The rental prices above are given for a one-bedroom apartment located in the center of the city.

How Much Do Utilities Cost in Germany?

Besides rent, you need to budget for the monthly costs of garbage, water, energy, and heating. In Germany, these are called “Nebenkosten”. They’re often calculated in your rent payment (known as “Warmmiete”), and you only have to pay extra if you surpass the average spending norm.

Here are the average costs for utilities and other household expenses in Germany:

• Utilities (electricity, heating, cooling, water, garbage). For an 85m² apartment, you can expect to spend around 303.85 monthly for electricity, heating, cooling, water, and garbage collection. Costs can range from €200 to €493 depending on your consumption.
• Phone plans. A monthly mobile phone plan that includes calls and 10GB or more of data costs roughly €25.67. Depending on the plan and provider you select, monthly costs might vary from €10 to €39.95.
• Internet (60 Mbps or more, unlimited data, Cable/ADSL). High-speed internet will cost you €45.24 per month on average. You can find plans starting from €35, but the cost varies depending on the provider and the type of plan.

How Much Does Dining Out Cost in Germany?

Dining out at German restaurants can be pricey. A meal for two people at mid-range spots like Bavarian beer gardens or Italian joints may cost you an average of €65. So, if your cooking skills aren’t up to par, it’s time to start learning, especially if you’re looking to save money in Germany.

However, Germany’s dining scene has something for everyone’s wallet. If you’re in the mood for a quick, less expensive meal, think doner kebabs – you can fill up for €15 on average.

Followed by any casual dessert or any drink, the price will climb higher. For example, half a liter of German domestic beer costs around €4.30. If you choose to have a cappuccino instead of a beer, you’ll have to pay around €3.43. A 0.33-liter bottle of water costs about €2.51, and a soda costs around €2.81.

How Much Do Groceries Cost in Germany?

The occasional restaurant meal can be a nice treat every now and then. But, if you like cooking at home or you muster the confidence to pick up a few basic cooking skills, this will be a great way to save money.

The prices of essential food and drinks in Germany are quite reasonable compared to the cost of dining out.

Here are the average costs for some of these items:

Source: Numbeo

What Are the Transportation Costs in Germany?

Everyday life in Germany can be hectic—rushing to classes or work, back to your apartment, meeting friends across town, or going shopping. Luckily, the country has great transportation networks to get you to these places.

How much you spend on transportation depends on your choices and commute distance.

Here are some transportation costs to keep in mind:

• Bicycle. Nothing beats the good ol’ bike for navigating crowded cities, especially during rush hours. You can buy your own, rent it from someone, or use Deutsche Bahn’s Call a Bike service for €5.90 a month if available in your city.
• Public transport. Currently, a one-way ticket on local public transport costs around €3. If you’re a regular commuter or plan to travel within Germany, the monthly Deutschland Ticket costs €58 from January 1st, 2025.
• Taxi. The starting fare is around €4.50, whereas the cost per kilometer ranges from €1.80 to €3.
• Personal car. According to , 69% of people surveyed in Germany own a car. If you own or plan to own one, you should account for the price of gasoline, which is €1.75 per liter on average.

How Much Does Clothing Cost in Germany?

Germany offers high-quality clothing, though it often comes with a higher price tag. Here are some typical costs you can expect:

• A pair of jeans – €40 to €110
• A thick winter jacket – €45 to €200
• A light summer dress – €20 to €60
• Running shoes (e.g., Nike, Adidas) – €50 to €120
• Formal business shoes – €60 to €200

To save on clothing expenses, consider exploring outlet stores or buying second-hand items.

How Much Can I Expect to Spend on Entertainment?

How much you spend on entertainment in Germany depends on your preferences. You can have fun without spending any money, whether it’s enjoying the outdoors at a park or visiting free-entry museums. For some other activities, you’ll have to pay:

• Cinema tickets – €10 to €16 per seat
• Gym – €34.84 per month on average
• Sports event – Bundesliga seats range from €14.12 to €80 for a single match (Source: )
• Nightlife – Clubs charge entry fees usually ranging from €10 to €30
• Streaming services – Standard Netflix subscription costs €13.99 per month, Spotify individual plan is €10.99

How Much Does Health Insurance Cost in Germany?

Health insurance is mandatory for everyone living in Germany, but how much you pay depends on your circumstances.

There is a dual system: you can be insured by statutory health insurance (Gesetzliche Krankenversicherung – GKV) or private health insurance (Private Krankenversicherung- PKV).

Public health insurance is generally more reliable, inclusive, and affordable. Private insurance offers extra benefits but is costlier and typically available for those who earn above a salary threshold.

How Much Does Public Health Insurance Cost?

Public health insurance premiums in Germany are calculated as a percentage of your gross salary. The calculation is capped at salaries of 66,150 euros per year or 5,512.50 per month, meaning that you won’t be charged more if your salary is higher.

Here is how the total percentage is calculated (from January 1st, 2025):

• Health insurance contribution rate – 14.6% of your gross salary.
• Provider-specific supplementary contribution rate – the national average is 2.5%, but this can be more or less depending on the provider.
• Long-term care (nursing care) insurance contribution rate – 2,6% up to 4.2%. The standard rate is 3.6% of your gross salary. An extra 0.6% applies if you are over 23 and don’t have children (totaling 4.2%), and a 0.25% reduction applies for the second child onwards if you have two or more children.

These contributions are split 50/50 between you and your employer, with the exception of the long-term care rate. The employer pays 1.8% of this rate, and you pay the rest. Your share of the contributions is deducted from your gross salary.

How Much Does Private Health Insurance Cost?

The cost of premiums in private health insurance is determined by individual risk evaluations. Providers take into account factors such as your age, health status, selected coverage options, and overall risk level (e.g. if you have existing health conditions).

Private health insurance in Germany is only available to those with an annual income of at least €73,800 (as of 2025), as well as to self-employed individuals and civil servants.

> Read our complete guide on health insurance in Germany.

How Much Does Health Insurance Cost for Students in Germany?

Students enrolled at accredited higher education institutions in Germany are eligible for subsidized statutory health insurance. As of 2025, student health insurance with a public provider costs around €140 per month. This premium includes both health and long-term care insurance contributions.

Students are eligible for statutory health insurance until they reach the age of 30. From then on, they can either switch to private insurance or continue to be voluntarily insured with public insurance at regular rates.

How Much Does Home Insurance Cost in Germany?

Two popular home insurance types in Germany are building insurance (Wohngebäudeversicherung) and home contents insurance (Hausratversicherung).

Building insurance covers damage to the structure of the home, such as from fire, storms, water damage, etc. Home contents insurance covers movable personal belongings like furniture, clothing, jewelry, and various types of equipment.

Building insurance costs start from €14.72 per month (€176.6 per year) for a 100 sqm apartment, but this can vary a lot depending on size, location, provider, and other factors.

For household contents, basic insurance policies start at just under €3.40 per month, or €40 to €45 per year for a small living space (around 40 m2).

How Much Does Car Insurance Cost in Germany?

Every car owner in Germany must have third-party liability insurance (Kfz-Haftpflichtversicherung). In addition, they can purchase the optional partial (Teilkaskoversicherung) and comprehensive coverage (Vollkaskoversicherung) for more protection.

Car insurance premiums depend on factors such as the driver’s profile, the car’s characteristics, location, and more. However, as a general estimate from the comparison portal , the average cost of mandatory car insurance in Germany is €304 per year.

What’s the Cost of Higher Education in Germany?

Most bachelor’s and master’s degree programs in public German universities are free of charge for both domestic and international students.

Instead of tuition, students pay a semester fee that ranges from €100 to €400. This fee covers the university’s administrative costs, student unions, and access to public transportation for students.

There are some exceptions such as the Federal State of Baden-Württemberg, where non-EU students have to pay €1,500 per semester for degree programs. In the Federal State of Bavaria, universities can also charge tuition fees for international students from third countries.

Private universities or some specialized master’s programs at public universities often charge tuition fees as well. These can range anywhere from €3,000 to €20,000 per year or higher, depending on the institution and program.

Examples of Monthly Expenses in Germany

Every person has different living circumstances, and therefore different living expenses. Here are three examples: a working professional in Berlin, a young student living in Aachen, and a middle-aged working couple in Stuttgart.

Cost of Living in the US vs Germany

The cost of living in Germany is cheaper than in the United States (US).

The average single person spends around $1,032 (€996) per month in Germany, without including rent. In the US, they would need $1,163 (€1,122) per month to maintain the same lifestyle. This means living costs (not including rent) are 11.2% lower in Germany compared to the United States

However, rent is usually what makes the biggest difference. In Germany, rent prices are on average -47.3% lower than in the United States. A one-bedroom apartment in the city center costs $892 per month in Germany, whereas in the United States, it is around $1,694.

Utilities and local transportation, on the other hand, cost slightly more in Germany than in the US.

See the table below for more information:

Since the US is very large compared to Germany, the cost of living can vary greatly. Let’s take New York and Berlin as the biggest cities in each country for a fair(er) comparison:

Source: Numbeo

Cost of Living in India vs Germany

Living costs in Germany are much more expensive than in India.

If a single person needs an average of ₹28,826.9 (€326.8) to live in India (excluding rent), they will need ₹87,882.1 (€996) per month to cover the same expenses in Germany. This means that on average, living costs in Germany are 204% higher than in India.

Rent is also more expensive in Germany. A one-bedroom apartment in Germany costs 377.6% more than the same apartment in India.

For a more detailed overview, take a look at the table below:

Source: Numbeo

Last Updated: 7 January 2025

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