Equity risk premium of Germany
The equity risk premium of Germany is 3.22% (as of 28 Oct 2026).
The breakdown
| Part | Value | Basis |
|---|---|---|
| Mature market premium | 3.2230% | Observed |
| Country default spread | 0.0000% | Zero by definition (the euro reference) |
| Volatility ratio | ||
| Country risk premium | 0.0000% | Zero by definition (the euro reference) |
| Total equity risk premium | 3.2230% | Observed |
Observed means worked out from market or official data.
How each part was found
Germany is the reference for the euro area. A euro-area country's default spread is its 10-year government bond yield minus Germany's, so Germany's own country premium is zero by definition.
Where Germany stands
Germany is joint 165th of 175 countries by equity risk premium, counted from the highest.
The median for the 49 countries in Europe is 4.53%, and totals there run from 3.22% (Denmark) to 29.88% (Belarus). Germany is 1.31 points below that median.
Germany is the reference for the euro area, so the other euro-area countries are measured against it. Their totals run from 3.41% (the Netherlands) to 5.29% (Bulgaria), with a median of 4.26%.
The closest countries by total are Australia (3.22%), Canada (3.22%) and Denmark (3.22%).
How it is calculated
Total premium = mature market premium + country premium.
Use it in a cost of equity calculation
Cost of equity = risk-free rate + beta x equity risk premium. With made-up inputs of a 4.00% risk-free rate and a beta of 1.2, a company earning in Germany has a cost of equity of 4.00% + 1.2 x 3.22% = 7.86%.
The figures are in US dollar terms. For another currency, add the inflation difference between the two currencies.
Get it by API or MCP
GET /v1/economics/DEU/equity-risk-premium
{ "country": "DEU", "as_of": "2026-10-28",
"country_risk_premium": "0.0000", "total_erp": "3.2230",
"basis": { "total_erp": "observed", ... } }
MCP: economics_get_equity_risk_premium { "country": "DEU" }Latest figure, history and every country, free with an API key.
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Common questions
What is the equity risk premium of Germany?
The equity risk premium of Germany is 3.22% (as of 28 Oct 2026), the extra return investors expect from shares over a risk-free government bond.
How is the country risk premium of Germany worked out?
Germany is the reference for the euro area, so its country premium is zero by definition. The total equals the mature market premium of 3.22%.
Which equity risk premium should I use for Germany?
For a company whose cash flows are mostly earned in Germany, use 3.22%. For one earning in several countries, weight each country's premium by where its cash flows come from.
How often is it updated?
Every month. Each figure carries its date, and earlier dates stay in the history endpoint.