Cost of living in Germany: Is it worth the cost?

Find out how the cost of living in Germany compares to countries like the UK, India, Australia and the US.

Ellie

5 minute read

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Updated on 24 Oct 2024

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Living

If you’re moving to Germany, it’s essential to plan your finances ahead of time. Understanding the cost of living in Germany per month will help you maintain a comfortable lifestyle while covering your expenses.

In general, the average monthly expenses in Germany can add up to €1,904 for a single person or €4,289 for a family of 4. However, these averages can vary depending on where you live, as rental prices are higher in cities popular among expats.

For instance, the average rent in Germany is €957 per month. However, when you search homes for rent in Berlin and Munich, expect an average rent of €1,254, whereas, in Stuttgart and Düsseldorf, you'll find a lower average rent of €1,059 per month.

To help you prepare for Germany, this article will break down each expense for a single person and a family of 4. For a better understanding, we will also compare the cost of living in Germany to other countries, such as India and the US.

With an average cost of living between €1,904 and €4,289, Germany is one of the cheapest Western European countries to live in. It has a lower cost of living than the UK, France, or Belgium, while providing a similar quality of life.

Some of the cheapest cities to live in Germany are Dusseldorf, Cologne, and Frankfurt. The more expensive cities to live in are Munich and Berlin, due to higher rental costs.

In general, life here is affordable and comfortable if you're earning the German average net salary of €3,110 a month.

Let’s break down the monthly expenses for a single person and a family of 4.

Cost of living in Germany for a single person

Whether you’re moving for your education, to start a new job or just wanting to experience German life, it’s important to know how much life in Germany will cost you each month.

^ When considering rent in Germany, keep in mind that the cost of renting a 1-bedroom apartment varies greatly from city to city.

Cost of living in Germany for a family of 4

If you decide to move your family to Germany, you’ll need to prepare a monthly budget. The following calculations are based on a family with 1 school-going child and 1 preschool child. Public schools in Germany are free.

^ The average price of renting a 3-bedroom apartment will vary greatly from city to city.

If you're a US citizen moving to Germany, you'll be pleased to know that the cost of living in Germany is about 21% cheaper than in the USA. This is because the costs of food, rent, utilities and education are significantly lower in Germany than in the USA.

Getting a degree in Germany is much more affordable than in America. German public universities don't charge tuition fees, and housing is inexpensive. The cost of living while studying is approximately $1,215 per month. In the USA, it's about $1,500 per month before tuition fees, which adds up to an additional $10,000 per year.

The cost of living in Germany is 226% higher than in India, given the exchange rate of the rupee to euro. However, Germany offers an excellent standard of living, with 6x higher earnings and access to reliable and affordable healthcare.

Once you settle into the lifestyle and earn in euros, you’ll soon realise how good German life can be.

India is cheaper than Germany for most costs except for some alcohol prices. For example, groceries are 61.4% cheaper in India, and a monthly public transport pass is 79.7% cheaper in India. But remember that the average salary in Germany is also significantly higher and is enough to maintain a good quality of life.

Following Brexit, many British citizens are moving from the UK to Germany for a cheaper cost of living. Some of the biggest costs you’ll incur, like rent, childcare and public transport passes, are all cheaper in Germany— not to mention the cheaper university fees.

The average cost of living in Germany is 6.7% cheaper than the cost of living in the UK. The biggest differences are in the cost of rent (22% cheaper than in the UK) and grocery prices (6.3% more expensive than in the UK).

Australia may have sunny weather, but Germany certainly offers more affordability. That's why many Australians move to Germany to experience life in the booming European economy and take advantage of living expenses that won't break the bank.

The average cost of living in Germany is 16.1% cheaper than the cost of living in Australia. The biggest differences are in the cost of rent (28.1% more expensive in Australia) and childcare (304% more expensive in Australia).

If you move from a country where the cost of living is higher than in Germany, you’ll quickly appreciate how much more affordable it is to live here. While your salary might be a little lower, the German work-life balance is one of the best in the world. Plus, German workers have more days off than any other European country. What’s not to like?

If you decide to move from a country with a cheaper cost of living than Germany, you’ll realise that the higher price tag is worth the incredible quality of life. You'll be able to afford healthcare with mandatory health insurance, study at tuition-free at German universities, and travel with public transport at affordable rates.

Now that you’ve got the intel on the cost of living in Germany, it’s time to decide where to live in Germany. Best of luck with your move!

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