Cost of Living in Germany Explained: From Rent to Daily Expenses

Is Germany Expensive to Live In?

The cost of living in Germany varies widely depending on the city and lifestyle. Major cities like Munich and Frankfurt are among the most expensive due to high demand for housing and higher lifestyle expenses. In contrast, cities like Berlin and Hamburg are more moderate, though still pricier than smaller towns.

Smaller cities like Leipzig, Dresden, and Nuremberg, and rural areas offer more affordable living options. These regions provide lower housing costs and a more relaxed lifestyle, making them attractive for students, retirees, and those on a budget.

Overall, while some parts of Germany can be expensive, especially in major cities, there are numerous affordable options throughout the country that cater to various lifestyles and budgets.

Housing Costs in Germany

Depending on your preferred city, the cost of housing can range from €600 to €1,500 on average as a single person. This is quite affordable compared to other European countries, but it can also be somewhat more expensive if you’re coming from different parts of the world.

If you desire an apartment in the city centre, you should expect to spend more for an apartment due to high demand and the convenient location. However, living outside the city centre, while not as ideal for some, can yield you a bit more breathing room in your budget as it is more affordable.

Apartments outside the city centre will cost up to €200 less for a one-bedroom and nearly 400 euros less for a three-bedroom unit. So, if you’re looking to stretch your budget so you have more room to explore Germany and the surrounding countries, getting a place outside the city centre might be advantageous.

If you’re buying an apartment and staying long-term in Germany, you can expect to spend at least €4,000 per square meter outside the city centre and around €5,000 per square meter in the city centre. It’s important to note that the price of renting or purchasing a house will depend on where you are, as South Germany is much more expensive than places like Leipzig, as we’ll explore later on.

Utilities, including basic amenities like heating, cooling, water, garbage, and electricity, must also be considered for housing. For a standard 85-square-meter apartment, utilities generally cost at least €200 per month. You can also get internet for as little as €40 per month, which can be quite a steal compared to other locations worldwide.

Food and Grocery Prices in Germany

The price of food and groceries in Germany can vary depending on how many people you’re purchasing for. Several supermarkets, like Aldi, Netto, and Rewe, also have different price points. For instance, you’ll likely find more affordable groceries at an Aldi, while Rewe can be somewhat more expensive.

Regardless, if you shop at a location like Aldi, you can budget for approx. €200 to €250 per month for a single person. That would consider shopping for all three meals—breakfast, lunch, and dinner—and cooking most of your food at home. However, you’ll come to find that eating out in Germany is not too expensive, so you’ll be able to treat yourself to a meal outside here and there:

• Inexpensive restaurant: €10–€15 per meal
• Mid-range Restaurant: €20–€40 per meal
• High-end Restaurant: €50+ per meal

If you like visiting coffee shops to work or simply want to grab a cup on your way to work, a cup of coffee will cost an average of €2–€4, which is still pretty inexpensive.

Even with how cheap groceries can be in Germany, you can save money by purchasing some items in bulk, shopping sales, and taking advantage of local markets where you can buy some items for a cut below supermarket prices.

Transportation Costs in Germany

Germany boasts an excellent public transportation system, making it easy to navigate cities and travel between them. According to Numbeo, the cost of a one-way ticket for local transit in Germany averages €3 for each ride.

An even more efficient way to save money is to subscribe to the Deutschland-Ticket, which costs €58 per month in 2025. This can be cost-effective if you need the bus or train to travel to and from the office every day.

If you are in a rush and need to grab a taxi or Uber, you can expect to pay at least €2.10 every kilometre after the initial €4.50 start fee.

If you have a car or would like to have one for greater accessibility, consider the costs of owning and maintaining a car:

• Fuel: Approximately €1.60–€2.00 per litre
• Insurance: €300–€600 annually, depending on the car and coverage
• Maintenance: €500–€1,000 annually for regular maintenance and repairs

As you can see, transportation can be pretty expensive if you want to get a car. Still, with the accessibility of German public transit, you can get to most places without spending too much of your salary every month. If you want to get a bit more of a workout in, consider getting a bike to take during the warmer months.

Health Insurance and Healthcare Costs

One of the great benefits of living in Germany is the fact that there is public health insurance, meaning you will not have to pay much to enjoy accessible and reliable healthcare. The German healthcare system includes public and private health insurance. You can opt for either, but public health insurance has lower overall costs and less extensive coverage than private insurance.

Public health insurance will be taken out of your employee salary, so you won’t have to pay for this directly. You can expect around 15% of your monthly gross salary to be paid towards health insurance. However, there are also benefits to having private health insurance, even with the additional cost. Private health insurance is mainly for people who have their own businesses, and the costs will vary.

While health insurance would cover majority of the costs, you may still have some out-of-pocket expenses. For certain medical specialists, you may have to pay a doctor visit co-payment of about €5 to €10. Additionally, when you get medicine prescribed, you may have to (co-)pay for them at an average of €10.

Other Monthly Costs in Germany

Aside from the cost of housing, food, and healthcare, you’ll have to account for other expenses while you’re living in Germany.

Phone and Internet

Starting with mobile phone plans, you can expect to pay as little as €20 per month, which will include calling and up to 10 gigabytes of data. Your home Wi-Fi will cost you between €30 and €50 per month depending on the size of your household and chosen plan.

Entertainment and Hobbies

If you’re looking to join a gym, a gym membership generally costs around €30 to €50 per month. On the other hand, if you would like to join a sports club the costs would range from €50 to €150 annually.

To go to the movies to see a new release, expect to pay around €12 to €15 for a ticket. Entry to a museum would cost around €5 to €15 per ticket.

Clothing

Budgeting for clothes in Germany depends on individual preferences, lifestyle, and shopping habits. This may help you have an overview of your monthly clothing expenses:

• Basic Budget (€50–€100): Suitable if you shop occasionally and prefer budget-friendly options from stores like Primark, New Yorker, H&M and C&A.
• Moderate Budget (€100–€300): Ideal if you shop regularly, including occasional purchases from mid-range brands like Zara, Mango, and Esprit.
• High Budget (€300–€600+): If you frequently buy high-end or designer clothing from brands like Hugo Boss, Adidas, or local boutiques.

Childcare

It is also relatively inexpensive for those with children who need childcare. Daycare and kindergarten could cost between €50 to €500 per month. State-owned institutions are often cheaper and would include subsidies based on monthly income. Additionally, hiring a babysitter would costs as low as €13 per hour.

Other Forms of Insurance

Other additional costs you might need to account for include basic household insurance to protect your belongings in the event of a disaster. Fortunately, this will only cost €20 to €25 yearly, nearly the same as a meal at a mid-range restaurant.

Additionally, you may want to take out liability insurance to protect you from paying a high amount of money if you accidentally damage someone else’s property. This would cost you €3 to €5 a month or approximately €50 per year.

Total Cost of Living in Germany

Taking all these costs into account, you can expect to spend around €1,700 to €2,300 per month for a comfortable low-budget lifestyle. This also would depend on which city you settle in and the number of people in your household.

Such a budget is quite feasible for many, especially considering the base salary for most residents in Germany is, on average, €2,808 monthly. That means if you budget appropriately, you can save a bit of cash for travelling while living in Germany.

Most Expensive Cities in Germany

As mentioned, not all parts of Germany will cost the same. Some of the most expensive regions are in the South of Germany, in cities like Munich and Stuttgart. These cities have housing costs as high as €1,000 on average compared to other parts of the country where the rent is sometimes €400 less.

Most of the cities will be pretty expensive, so unless you have a higher-paying job, you may need to be more mindful of your budget in these locations. However, there are fortunately more inexpensive parts of Germany that you can research that might offer you more cash to save, whether for the long term or to travel.

Most Affordable Cities in Germany

The least expensive places to live in Germany may surprise you, but they include cities like Leipzig, where the average cost of living per month is only €1,700. Berlin is also relatively affordable and only costs around €2,150 per month on the high end. If you prefer more history, Cologne is another affordable spot that only costs a maximum of €2,000 per month.

You may not have a choice of where to live if you’re already working a job in Germany, but if you’re considering moving, these cities are among the best for inexpensive living. Many of these cities are also surrounded by history, have delicious food, and have unique festivals and traditions that you can explore within a short distance from your home.

Tips to Reduce Monthly Costs in Germany

When it comes to reducing your monthly living expenses in Germany, there are several things you can do to budget more effectively. Here are some tips we recommend making the most of your salary while in Germany:

• Choose an apartment outside the city centre: With rent and inexpensive transportation, you can save a great deal by living a few minutes away from the action.
• Cook at home: Even though dining out is less expensive than in other parts of the world, cooking most of your meals at home will save you money for travel or investment.
• Choose a cheaper city: If you have the option, try to transfer to a cheaper city for your work or study in a less expensive city. This can help you reduce your costs even more!