How expensive is it to live in Germany? An overview of (almost) every cost
From rent and food to transportation and leisure, many of us might not know exactly how much we spend each month. Here’s a simple breakdown of everything that goes into the cost of living in Germany.
16 min read
How much does it cost to live? That’s a good question—especially if you’re moving into your own apartment for the first time or if you’re new to Germany. You might be experiencing other changes that will impact your monthly budget, too, like buying a car, having a child, changing jobs, or moving to a more rural area.As always, we’ve got the answers for you! We’ve looked into the cost of living in Germany on your behalf. In this article, you’ll find out what “cost of living” means, how high it is in Germany on average, and what counts towards the cost of living—from rent and food all the way to your phone plan. Plus, we’ll give you handy savings tips and update this article regularly to reflect economic changes, like the current inflation rate. Please note: some indices like the rent index are recalculated only every two years or even less frequently. The newest data for the average consumer spending and living costs by the Federal Office of Statistics are from 2022, the next update is planned for 2027.
What is the cost of living?
The term “cost of living” comes from economics and describes what private households spend on day-to-day life. In simple terms, the cost of living is all your expenses for the things you need to live. So, what counts towards the cost of living? To name a few things: your home, food, toiletries, and internet plan, not to mention leisure activities and sport. Insurance policies and deductions for social security, like your pension or personal liability insurance, aren’t part of the cost of living, strictly speaking—but it’s helpful to take these expenses into account when calculating your household budget.Here’s a table with the most important things that count towards the cost of living in Germany:
Housing
Rent or mortgage payments, energy costs, ancillary costs, householdappliances, etc
Monthly average:€1,025
Food & Drink
Food, alcohol/tobacco, drinks, pet food, etc.
€417
Clothing
Clothing for work or leisure
€103
Health and toiletries
Toiletries and services, e.g. cosmetics, hairdresser, etc.
€118
Transportation
Public transport, shared mobility, your own car, bike, etc.
€347
Leisure & Culture
Cinema, theater, books, gym, sports clubs, travel, courses, etc.
€245
Communication
License fee, cellphone plan, internet, etc.
€122
These data are from the most recent report by the German Federal Office of Statistics.It goes without saying that people have different needs and different consumer behavior. If you only buy your groceries from an organic supermarket, you’ll spend more on your food. Similarly, if you use public transport or a bike to get around, you’ll spend less than people who drive. And if you’ve got a family, you’ll have to cover the costs of having a child, like clothes, toys, and maybe even kindergarten fees.As a result, statistics always use representative goods and price indices to calculate the cost of living. This means that the average cost of living in Germany is just a guide—it can be different for everyone.
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Whether you live in a city or in a rural area has a huge impact on your cost of living.Rent is a lot higher in big cities like Berlin, Frankfurt am Main, and Munich than in Chemnitz, Gelsenkirchen, or Zwickau. In metropolitan areas, rent, energy, and ancillary costs often make up more than half of your expenses. In rural areas, rents are cheaper—and that’s not all. More people there own their own homes and don’t need to pay rent (but they do need to pay ancillary costs and for renovation work). However, living in the countryside comes with other expenses, e.g. for a car—so it’s hard to tell which lifestyle is cheaper. While Berliners, for instance, had an average net sum of €23,952 per year to spend, people from the region of Brandenburg were slightly better off with €24,050 per year after all other expenses. That’s a difference of merely €8 per month. Along with the size of your home town, the region where you live also impacts how much money you need each month. According to a study by the Cologne Institute for Economic Research (IW) and the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR), the highest regional costs of living are around Munich, Stuttgart, Frankfurt and Hamburg—in the old federal states where the economy is stronger. Costs in federal states in the eastern part of Germany (with the exception of Berlin and Brandenburg) and in Rhineland-Palatinate are below average. So keep this mind if you’re planning to move to Germany.
Germany’s most expensive cities by cost of living
So, you’re one of those people moving to the city? Here are Germany’s top ten mostexpensive cities, based on apartment rents in late 2024, according to Statista:1. Munich: €22.08 per m22. Frankfurt am Main: €19.17 per m23. Berlin: €18.18 per m24. Freiburg: €17.04 per m25. Stuttgart: €17.03 per m26. Hamburg: €16.61 per m27. Heidelberg: €16.20 per m28. Potsdam: €15.99 per m29. Mainz: €15.71 per m210. Düsseldorf: €15.58 per m2 In contrast, the cost per square meter in Chemnitz is €5.59, and in Gera and Gelsenkirchen you’d pay between €6-6.50 and €6.50-6.90, respectively. These are the places with the lowest rents in Germany according to the 2024 rent index.
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The cost of living: average values for Germany in 2025
All told, how high is the cost of living in Germany? According to the most recent survey by Destatis, it adds up to €2,846 a month, with 36% of this going towards housing and energy costs and 15% on food, alcohol, and tobacco (as of April 2025). If you calculate this on an annual basis, the average cost of living in Germany is €34,152. A good chunk of change, right? But bear in mind that these average figures are for private households—not just for individuals, but also couples and families. Nevertheless, the cost of living in Germany has been going up steadily. According to Statista, consumer prices for utilities were 13% higher in February 2025 compared to January 2022. The German equivalent of Consumer Direct in Britain has found that prices for groceries and drinks increased by 30% in the last 4 years, and according to ADAC, gasoline prices rose from 152.20 cents per liter (Super E10) in 20211 to 173.90 cents per liter in 2024. Wages and salaries, though, haven’t kept pace with these increases—which is why more and more people have to live on a budget in their old age. So, in the rest of this article, we won’t just look at the general cost of living in more detail—we’ll also point you towards some handy savings tips!
1. Housing
You know this already: Housing costs make up the biggest proportion of the cost of living. According to data from Destatis, the average housing expenses in Germany are around €923 per month, representing an average of 36.8% of all consumer spending.
The cost of rent
Want to rent an apartment and save money? In a city like Frankfurt or Munich, you’ll probably have to move into a shared apartment or follow our other savings tips when renting an apartment. As seen in the list above, you’ll pay a monthly rent of over €22 per square meter in Munich (as of January 2024). For a 50 m2 apartment, this rent would be over €1,100, compared to €279.50 in Chemnitz. Along with rent, there are other factors to consider, especially energy and other housing costs.
Water, electricity and gas expenses
The fact that water itself isn’t free becomes clear when you receive your bill for ancillary costs. Drinking water is an operating cost, just like the cleaning of shared spaces and waste disposal. A cubic meter of water costs around €2—altough prices vary depending on the municipality. And what does 1,000 liters of water cost? Trick question! That’s €2, as well—a cubic meter of water is 1,000 liters. Either way, tenants have little impact on their water costs. They’re already included in your rent and split among everyone living at your address. If you want to buy or build a house, though, you need to keep a closer eye on these ancillary costs. Energy prices make up a heftier chunk of housing costs mostly due to ongoing geopolitical tensions. For new customers, gas currently costs 11.77 cents per kilowatt hour (kWh, as of April 2025). In comparison, five years ago, in 2020, it was 5.65 cents per kWh. Alongside paying for your own gas usage, you’ll also pay a flat-rate standing charge. Even though it’s not easy, here are a couple of ideas to reduce your gas bill.Similarly to gas, electricity prices are on the rise too. The cost of 1 kWh of electricity is around 36.51 cents (as of January 2025). A one-person household uses 1,300 kWh per month, on average, so your electricity will cost around €40 a month. In this article, you’ll find out how to cut your electricity bill and get some money back.
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Officially, insurance doesn’t count towards the cost of living in Germany. But household contents insurance is absolutely crucial to protect you against theft, storms and break-ins. Your household contents insurance will likely cost at least €2.91 a month. Often, the cost of household contents insurance is calculated by square meter. In other words, it’s affected by how big your home is.
2. Food and drink
Expenses for food, drinks, alcohol, and tobacco take second place on the list of monthly expenses within the cost of living, after rent. They have seen a steady increase in recent years, as a survey by Statista showed.
Average spending on food and drink
On average, monthly food costs come to €417 per household, including drinks and tobacco. Of course, it also matters whether you do your shopping in discount stores or organic shops, whether you regularly get drinks delivered, or whether you smoke. However, food prices can go up due to inflation, supply and demand, and other factors, which impacts every single consumer. The price of butter has fluctuated a lot recently, from €2.39 in the fall of 2024 to about €2 in early 2025. Olive oil has become more expensive too: Consumer prices for oils and fats increased by 63.4 % between 2021 and 2024. Bread was almost 40% more expensive, and fish and dairy products increased by about 30% (as of April 2024). There’s not much you can do about these price increases, but there are tips for saving money when buying groceries.Tip: Easily calculate how inflation affects your savings with our handy inflation calculator!
Pet costs
Whether you’ve got a dog or a cat, pets also incur regular costs. These costs are mostly for pet food, which is why these expenses fall under the food and drink category. Cat food costs around €30-50 a month. Dog food costs around €10 to €300 a month, depending on the dog’s size and the quality of the food you buy.
3. Clothing
Whether for work or leisure, it’s said that clothes make the (wo)man. On average, this aspect of the cost of living in Germany adds up to €103 a month. Incidentally, you can also offset your work clothing from your tax—and get back some of the income tax you’ve paid!
4. Health and toiletries
Prevention is the best cure when it comes to health. If you like to exercise, the expenses for this also come under your cost of living, like sports courses, club and gym memberships, or the cost of a personal trainer. Of course, there are also ways to exercise for free. Toiletries and personal care products like toothpaste, shower gel, and toilet paper are also part of your monthly cost of living. On average, health-related expenses come to €118 per household.If we go by the book, health insurance costs are not part of the cost of living in Germany because employees have them deducted from their gross salary. This also goes for private health insurance costs. If you’re self-employed and pay social security yourself, though, you should take these costs into account in your freelance budget.
5. Transportation
No matter how nice it is within your own four walls, we sometimes have to (or want to) go to work, see family and friends, and engage in leisure activities. How much this costs depends on how you like to get around. On average, transportation in Germany comes to €347 a month, with €314 down to your car and €33 down to public transport.
Buying a car
Wondering how much owning a car costs? Alongside the actual cost of your new or used car, you need to register the car, at a one-off cost of around €30. If you want to re-register your car after moving house, this costs around €50. Then you’ve got the recurring costs of insurance, fuel, and maintenance.
Car insurance costs
The cost of car insurance in Germany depends on various factors. New drivers tend to pay more because they pose a greater risk, in insurers’ eyes. The terms of the insurance policy play a role, too. The annual cost of car insurance is around €250. The price can go up to either €340 or €565 a year, depending on whether you opt for fully or partially comprehensive coverage.
Car repair costs and maintenance
If your headlamps aren’t working or your car’s got an ugly dent, sometimes your car needs repairs. On average, this amounts to €55 a month. Then there are the TÜV costs of a vehicle inspection, which were around €152 to €163.60 in 2025. Bear in mind that this car inspection costs different amounts depending on your region and the company carrying out the inspection.
Filling up
Whether you’ve got an electric car or a vehicle with a traditional combustion engine, you need to refuel it—either with gasoline or electricity. A household spends between €72 and €106 on fuel each month, with this figure often impacted by external factors such as economic or other crises. According to data from ADAC, gasoline prices decreased slightly. They’re currently below €2 per liter, with diesel at €1.57 and Super E10 at €1.68 (as of April 2025).If you want to charge your electric car, this’ll cost between 29 up to 79 cents per kWh (as of April 2025). Prices are based on current electricity prices, the charging method (slow vs. fast) and the provider (private vs. public). Prices have dropped recently, as more and more private companies are entering the market, including supermarkets like Kaufland and Aldi or Ikea.
Public transport
Prefer to travel by bus or train? With the Deutschland-ticket, you can travel on regional trains and public transport all around Germany for €58 a month. However, the cost of a single ticket can vary by region. In Munich, you’ll pay €4.10 for a single ride in zone M, while Halle is relatively cheap with €3 per single ticket. Looking at Germany as a whole, the average monthly spending on public transport is €33—however, that was in 2022, before the launch of the Deutschland-ticket. In cities, monthly expenses for this are generally higher than in the countryside, where more people drive.
6. Leisure and culture
From the cost of Netflix to museum tickets to vacations: German households spend an average of €245 a month on cultural and leisure activities. This was the finding of a survey by Statista. It might sound like a lot at first glance, but just one holiday can push up the average figure a great deal. Of course, there are lots of ways to cut costs here. For example, you could share your Amazon prime account with others, buy an annual museum pass, or attend free concerts. You can also check out our tips for budget-friendly travel.Educational expenses are part of the cost of living, but the definition says this actually relates to further training and professional development. An analysis performed by Destatis revealed that people spend around €19 a month on education. That’s around 0.7% of the cost of living in Germany. If you’re still at university, you can take expenses relating to your studies, like learning material or semester fees, into account in your personal budget. Check out our blog for students for practical tips.
7. Communication
The general cost of communication has increased slightly in recent years and is now at €122 a month. Destatis includes TV in this figure, alongside phone and mail.
Cable TV costs
The costs of your cable connection used to be included in the ancillary costsfor an apartment and made up an average of €10 to €15 a month. You’d still pay these charges even if you didn’t watch TV—that’s why this practice has been abolished in July 2024. Tenants are now free to choose their own cable connection or do without. Make sure to double check your annual utilities statements for 2024 and 2025 and approach your landlord in case you can still spot these costs in the overview. For HD TV, you’ll pay an average of €6-10 each month for internet TV, depending on the provider. This is the cheaper option, on average, the picture quality is better, and you can watch TV on all your devices.
Phone and internet
Phone and internet cost an average of €42 a month (as of 2024). Prices vary depending on the provider, amount of data, and internet speed. Cellphone plans are considerably cheaper (starting at €4.99 per month), as many new providers recently entered the market. And by the way: if you also use your private smartphone or internet for work or if you’re self-employed in Germany, you can offset these expenses against your income taxes.
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All these numbers making your head spin? Luckily, we’ve got lots of handy tools that help you keep an eye on your income and expenses. With N26 Insights, all your account activities are automatically sorted by category and listed for you each month. Just create tags like #transportation or #rent for your card payments and get a precise overview of how much you’re spending month to month.
