Germany is often considered a country with a high quality of life, efficient public infrastructure, and a strong social safety net. But when it comes to day-to-day expenses, costs can vary dramatically—especially between regions like Berlin and Munich, and between the East and West. Below, you’ll find a clear, practical breakdown of what it really costs to live in Germany today, with concrete examples.
1. Overview: What Drives the Differences?
The main factors that affect cost of living are:
- Rent: The single biggest expense, and varies hugely.
- Groceries: Prices are relatively uniform, but with some regional variance.
- Transport: Public transit is common; car ownership is more costly.
- Health insurance: Mandatory and relatively consistent, but varies with income.
- Utilities & internet: Slightly higher in southern/western cities.
- Childcare and education: Public kindergarten fees, etc.
Munich (West/South) is Germany’s most expensive large city.
Berlin (East) is still cheaper than Munich, but rents have risen sharply.
Dresden/Leipzig (East) and smaller towns in the east are notably more affordable.
2. Concrete Calculations
All costs are in EUR per month.
Assumptions:
- Living in a 45 m² (single) or 70 m² (2 people) or 80–90 m² (family) apartment, not in luxury but in a safe, average area, with basic health insurance, public transport, and moderate spending habits.
A. Single Person
| Berlin (East) | Munich (West) | |
|---|---|---|
| Rent (warm) | €600 (WG) – 900 (Apartment) | €700 (WG) – €1,400 (Apart.) |
| Groceries | €270 | €300 |
| Utilities/Internet | €90 | €120 |
| Health insurance | €180* | €180* |
| Public transport (DE-ticket) | €49 | €49 |
| Leisure/Misc | €120 | €150 |
| Total | €1,659 | €2,209 |
*State health insurance, lower end of statutory rate for a single with low/avg. income.
B. Two Adults (Couple, no children)
| Berlin | Munich | |
|---|---|---|
| Rent (warm, 70m²) | €1,350 | €1,950 |
| Groceries | €450 | €500 |
| Utilities/Internet | €130 | €160 |
| Health insurance | €360* | €360* |
| Public transport | €98 | €118 |
| Leisure/Misc | €200 | €240 |
| Total | €2,588 | €3,328 |
*Both adults on statutory insurance, assuming moderate incomes.
C. Two Adults + One Child
| Berlin | Munich | |
|---|---|---|
| Rent (warm, 85m²) | €1,600 | €2,250 |
| Groceries | €600 | €700 |
| Utilities/Internet/TV* | €170 | €210 |
| Health insurance | €400* | €400* |
| Public transport | €98 | €98 |
| Childcare/Kindergarten | €120 | €150 |
| Leisure/Misc | €260 | €300 |
| Total | €3,277 | €4,165 |
*Includes child covered via family insurance. Public kindergarten fees are highly subsidized but vary by income and city. Public transport is free until a certain age. You have to pay ~$20 / mo per household for the possibility to watch German public TV on a TV or the internet whether you have a TV, the internet or are deaf, dumb and blind. There’s no way out.
3. West vs. East: Beyond Berlin and Munich
Western cities like Frankfurt, Düsseldorf, Stuttgart are generally on par with or just below Munich’s costs—rent is especially high.
Eastern cities (Dresden, Leipzig, Erfurt, Chemnitz) are notably cheaper. For example, a single person in Leipzig might pay €700 for a 1-bedroom flat and see total monthly costs around €1,300.
In summary:
- East Germany is still 20–30% cheaper for housing, but salaries are also often lower.
- West/South is more expensive overall, but higher salaries can partly offset costs.
4. Cost Breakdown Table: Quick Comparison
| Example | Berlin (East) | Munich (West) | Leipzig (East) | Frankfurt (West) |
|---|---|---|---|---|
| Single (Total) | €1,659 | €2,209 | €1,300 | €2,100 |
| Couple (Total) | €2,588 | €3,328 | €2,050 | €3,100 |
| Family (Total) | €3,277 | €4,165 | €2,600 | €3,900 |
5. What About the Minimum?
You can live more cheaply, especially if you share a flat (“WG”), live outside the city, or cut back on non-essentials. But most newcomers underestimate housing and underbudget for extras (insurance, deposits, moving costs, Abschlag).
6. Conclusion: What to Plan For
- Berlin is still a bargain compared to Munich, but costs are rising.
- The East offers savings, but job opportunities can be scarcer and salaries lower.
- Families benefit from subsidies (child benefit, cheap daycare) but must budget for higher rent and groceries.
- Always plan for 3 months’ rent as deposit, and some up-front expenses.
- Also calculate 3-6 months of living in an AirBnB if you are trying to find a flat without the help of a real estate agent because the flat situation in bigger cities is currently devastating (as of June 2025).
Rule of thumb:
- If you want an average urban lifestyle in Germany, plan for at least €1,700/month (single), €2,600/month (couple), or €3,300/month (family) in Berlin.
- In Munich, budget at least 25–30% more.
FAQ – Cost of Living in Germany
Q: Are the costs much lower outside big cities?
A: Yes. In rural towns, rent can be half of Berlin’s, but salaries are also lower and job options fewer. Also in rural areas in the East you have 30-50% AfD voters. The AfD is an officially acknowledged far right party that doesn’t approve of foreigners. Google “AfD + remigration”.
Q: How much does health insurance cost if I earn more?
A: Statutory insurance rises with income up to about €1150/month. But if only one partner works and the other stays at home, this will cover both and also children until a certain age (even beyond 18).
Q: How expensive is public transport for children?
A: Under-6s are free; older children get discounts until 14.
Q: How can I save money?
A: Share a flat (WG), buy used furniture, cook at home, avoid car ownership.
Q: What about taxes?
A: Income tax is deducted from your salary and not included here; these are net living costs. For most things you buy you’ll pay 19% VAT. Unlike in the US, prices always include VAT. There’s other taxes you need to be aware of like e.g. Church tax and TV-tax (they call it “fee” but you have no choice but to pay it so it’s inofficially considered a tax).