Wohngeld Calculation – How Your Entitlement Is Determined
The Wohngeld calculation follows a legally defined formula. It takes into account the number of household members, total income, and eligible rent. Here we explain how the calculation works.
The Wohngeld Formula
The Wohngeld is calculated using a complex formula established in the Wohngeld Act (WoGG). Simplified:
Wohngeld = 1.15 × (M − (a + b × M + c × Y) × Y)
M = Eligible rent (monthly) | Y = Total income (monthly) | a, b, c = Household-specific parameters from the WoGG
The 4 Factors of Wohngeld Calculation
1. Number of household members
The number of people living in the household determines the amount of allowances and the applicable parameters in the Wohngeld formula. The more people in the household, the higher the allowances and the maximum eligible rent.
2. Total income
Total income includes all earnings of all household members: gross wages, pensions, maintenance payments, unemployment benefit I and other income. Allowances, income-related expenses and social security contributions are deducted.
3. Eligible rent
The actual gross cold rent is considered up to a maximum amount that depends on household size and rent category. If your rent exceeds the maximum, only the maximum amount is counted.
4. Rent category (Mietstufe)
The Mietstufe affects the maximum amounts for the eligible rent. Since the Wohngeld-Plus reform, Berlin has been uniformly assigned to Mietstufe IV, which applies to all districts.
Steps of Wohngeld Calculation
- Determination of eligible total income (after deduction of allowances and income-related expenses)
- Determination of eligible rent (capped at the maximum amount for the respective rent category)
- Application of the Wohngeld formula with household-specific parameters
- Result: monthly Wohngeld amount (if positive)
Calculation Example: Single Person in Berlin
- Step 1: Determine the maximum rent — For a single person in Berlin-West (Mietstufe IV), the maximum eligible rent is €426.
- Step 2: Determine the eligible income — With €1,200 gross earnings and €550 cold rent, the eligible income after deducting taxes, social security contributions and allowances is approximately €850.
- Step 3: Apply the formula — The Wohngeld entitlement is derived from the eligible income and the eligible rent. Since the rent is below the maximum limit, the actual rent is taken into account.
This example serves as a guide. The exact amount is determined individually by the responsible Wohngeld office.