Living Costs in Germany vs USA: Which one is the best?

Living Costs in Germany vs USA: Which one is the best?

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Aishwarya
Aishwarya Bhatnagar
Study Abroad Expert
Updated on Nov 28, 2025 15:55 IST

Choosing between Germany and USA is a hard choice for many. While USA gives very high salaries, the cost of living there is high. Germany offers cheaper rent and better safety, but taxes are heavy. Here is real truth about which country is best for your wallet.

Living Costs in Germany vs USA

Moving to a new country is a huge step. The first thing everyone ask is: "Will I have enough money?" When we look at Living Costs in Germany vs USA, the answer is different for everyone. In the United States, the paycheck looks very big. It feels good! But then you have to pay huge bills for health insurance, very expensive groceries, and crazy high rent for accommodation in cities like New York. You make money, but it disappear fast.

In Germany, the government takes a lot of tax from your salary. It feels bad at first. But then you realize that kindergarten is almost free and university cost zero. Also, buying food at the supermarket is much cheaper. You don't need a car because public transport is good. Many people feel less stressed in Europe. So, is the high cash in America worth the high risk? We will look at the prices now to help you decide.

Table of contents
  • What is the Cost of Living in Germany?
  • What is the Cost of Living in USA?
  • Which is Cheaper for Living - USA or Germany?
  • Germany or USA - Which is Best for Living?

What is the Cost of Living in Germany?

The average cost of living for a student or a single person monthly without rent is €1,080. But if you have to pay the rent, then the overall costs will change. Check the cost of living in Germany for a month:

Expense Head Average Monthly Costs
Average cost of rent €1,523
Utilities €200 to €400
Food and groceries
  • Regular costs: €200 to €350
  • Dining out (occasionally): €80 to €150 (additional costs)
Health insurance for students under 30 €120 (monthly premium)
Transportation
  • Deutschlandticket (public transport): €58
  • Rented bike: €10 to €30
  • Car expenses: €300 – €600
Miscellaneous costs €150 to €200

Costs of rent changes with the city of study. There are top cities in Germany for studying with high rents. These high cost German cities can cost you a bomb in terms of living costs. In place of these, there is an option of cheaper cities to live and study.

Cheapest Cities to Live in Germany

Here are 5 cheapest cities in Germany with average monthly cost:

  1. Dresden: €993
  2. Leipzig: €994
  3. Berlin: €1008
  4. Stuttgart: €1,029
  5. Hamburg: €1,063

What is the Cost of Living in USA?

The average monthly cost of living in USA is around $1,170 without rents. Cost of living will go up when rents are included. Check out the monthly cost of living in USA for international students:

Expense Head 

Average Monthly Costs (USD)

Average cost of rent (on-campus/shared off-campus)

$600 to $1,500+

Utilities (electricity, water, internet, phone)

$100 to $300

Food and groceries

  • Regular costs (cooking at home): $250 to $600
  • Dining out (occasionally): $10 to $30 per meal (additional costs)

Health insurance for students

$60 to $250+ (monthly premium)

Transportation

  • Public transport pass: $50 to $150
  • Car expenses (fuel, insurance, maintenance): $200 to $400+

Miscellaneous costs (books, personal expenses, entertainment)

$100 to $300

When you add up the rent, the overall living cost can go up. USA is a huge country with over 50+ states. There are both expensive and affordable student cities in USA to live and study. Choose cheaper cities so that you don't spend too much on your living expenses.

Cheapest Cities to Live in USA

Check out the 5 cheapest cities in USA to study and live in with average monthly costs:

  1. Mississippi: $777
  2. Alabama: $807
  3. Oklahoma: $814
  4. Kansas: $862
  5. Missouri: $914

Which is Cheaper for Living - USA or Germany?

To understand which is a cheaper option, we have compared the costs below:

Monthly Expense Head

Costs in Germany

Costs in US

Monthly costs (for one person) excluding rent

$1,134

$1,170

Rent (1-bedroom apartment) in the city center

$996

$1,728

Basic utilities (electricity, heating, cooling, water, garbage)

$348.22

$210

Local transport (one-way ticket)

$3.68

$2.50

Meal for 2 (mid-range restaurant)

$74.84

$75.32

Domestic beer (0.5 liter draught)

$5.18

$6

Coffee (Cappuccino)

$4.09

$5.31

Water (1.5 liter bottle from the store)

$1.09

$2.25

Gym

$40.86

$45.56

As per the comparison above it can be noted that:

  • Rent is significantly lower in Germany, especially in smaller cities. As compared to US, rent is -42.3% lower than US.
  • Everyday food items are 17-22% cheaper in German supermarkets.
  • Germany has a reliable, affordable public transport system; the US is car-dependent.
  • The utilities in Germany are more expensive than in US by around 66%.
  • Germany offers an income-based, universal public system; the US relies on private insurance.
  • Public university education is either tuition-free or lower in Germany as compared to USA.

Germany or USA - Which is Best for Living?

To make a choice and understand which is the best option for living in Germany or USA, look at these pointers:

  • The public universities in Germany charge only a small administrative fee, overall reducing student debt. In comparison to USA, where public universities in USA are cheaper but not free.
  • Utilities are though higher in Germany than USA but day to day costs are still lower in comparison.
  • In terms of jobs, there are high paying jobs in USA as compared to Germany. A major drawback in Germany is that German proficiency is an important factor for getting a job. Salaries can make ends meet in USA cut to cut. In Germany there is a high tax on everything.

Choose Germany if you prioritize affordability, long-term stability, a clear path to residency, and a high quality of life with less financial stress. Choose the USA if you can afford the high costs and prioritize maximum earning potential, a flexible education, and an English-only environment.

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About the Author
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Written by
Aishwarya Bhatnagar
Study Abroad Expert
Aishwarya is a professional Writer currently working as a Study Abroad Expert in the Editorial Team at Shiksha. She has over 5 years of experience and is skilled at creating Online Content with leveraged knowledge i Read Full Bio
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