How wealthy are you really? A simple explanation of the European income comparison

In Germany and across Europe, there are major differences in income, wealth and living standards. But objectively, this can be assessed more accurately by looking at median values, income distribution and comparison calculators - instead of relying only on personal perception.

This guide explains the European income pyramid, shows where the German median stands, and how to determine whether you belong to the middle class, the top 10%, or even the top 1%.

What does “wealthy” mean? Why the median value is crucial

To assess wealth realistically, statisticians use several indicators. One of the most important is the median income in Germany - the value at which half of the population earns more and the other half earns less.

Why the median is more important than the average

• The average is distorted by extremely high incomes.
• The median shows where the true “middle” lies.
• In the EU, it is used to officially compare how Germany’s household income ranks within the European context.

Current data shows: The median household net income in Germany is noticeably higher than in many EU countries, but lower than in Northern Europe and Luxembourg.

Income distribution: Where does wealth begin - and who belongs to the top 10%?

If you want to find out: “How wealthy am I in comparison?”, it helps to look at Germany’s income distribution.

Germany’s income pyramid - the key zones

• Lower third: Income below the median, often shaped by part-time work or low wages.
• Middle class: Around the median - this is where most of the working population is located.
• Top 10 percent of incomes: Clearly above the median, typically highly qualified full-time workers, specialists, managers.
• Top 1 percent of incomes in Germany: This is where the absolute top earners begin.

At what income level is someone considered wealthy?

The threshold varies, but statistically “wealth” begins where income is far above the median and clearly positioned above the middle class.

European differences: Why your salary is valued differently in Spain or Austria

An income that is considered “good” in Germany may mean significantly more or significantly less in other countries.

Germany’s income distribution in an EU comparison shows:

• Northern Europe has higher median values
• Southern Europe significantly lower ones
• Central Europe lies in between

Therefore, the question “How wealthy am I in comparison?” always depends on your place of residence, tax burden and regional cost of living.

How to realistically classify your income: The most important tools and calculators

To get an objective assessment, you should use comparison calculators.

Important online tools

• Finanzfluss calculator: offers several comparison functions.
• Finanzfluss gross-to-net calculator: shows where your net income stands relative to the average.
• Poverty-wealth calculators / “Which social class do I belong to?” calculators: place you statistically in the correct income group.
• Germany income comparison: shows how many people earn more or less than you.

These tools use official data on income distribution or the German income pyramid and help you classify yourself objectively.

Wealth depends on more than just income

Whether you perceive yourself as “wealthy” depends not only on income, but also on:

• cost of living
• household size
• place of residence
• assets
• financial obligations

An income above the median already indicates a solid position. Belonging to the top 10% or even the top 1% is, however, a statistical exception.

With comparison data and commonly used calculators, you can now quickly and objectively determine how wealthy you really are - both in the German and the European context.