Cost Of Living in Baghdad 2025

cost of living chart - average monthly expenditure in Baghdad

Average monthly spending for singles, couples, students, and families in Baghdad

Whether you're living in Baghdad or planning to move there, it is very important to know the cost of living and the prices of things. Here we list the average spending for the four main population groups.

Average Monthly Expenditure

Currency: IQD
110,000 1.1M 16M
MINIMUM AVERAGE MAXIMUM
$83 $830 $12,000

Monthly Expenditure ▶ Single

Currency: IQD
140,000 1,000,000 11M
MINIMUM AVERAGE MAXIMUM
$110 $760 $8,400

Monthly Expenditure ▶ Couple

Currency: IQD
230,000 1.5M 14M
MINIMUM AVERAGE MAXIMUM
$170 $1,100 $10,000

Monthly Expenditure ▶ Family

Currency: IQD
350,000 1.7M 17M
MINIMUM AVERAGE MAXIMUM
$270 $1,300 $13,000

Monthly Expenditure ▶ Student

Currency: IQD
110,000 720,000 8M
MINIMUM AVERAGE MAXIMUM
$82 $550 $6,100
Income and cost of living compatibility. Is it affordable or economical to live in Baghdad

Affordable living in Baghdad

Income and cost of living compatibility

We asked residents one simple question and recorded their answers.

Is it affordable or economical to live in Baghdad?


Yes
56%
No
44%

Around 56% of surveyed residents think that living in Baghdad is affordable with proper budgeting while 44% reported that it is just too expensive and not affordable even with frugality and thriftness.

How easily is cost-cutting. Are there plenty of low-cost options in Baghdad

Low-cost alternatives in Baghdad

People are always looking for ways to cut down expenses and reduce expenditures. The hallmark of any affordable place is the availability of discount stores, bargain deals, smart or secondhand shopping, refurbished items, and couponing. We asked residents how easily cost-cutting is and the answers were distributed as follows:

Plenty of low-cost options57%

Few low-cost options43%


Based on the survey, 57% of the people living in Baghdad have no problem finding low-cost alternatives to support a frugal lifestyle while 43% think that thriftness is difficult due to scarcity in discount markets and secondhand outlets.

Distribution of monthly cost of living expenses in Baghdad

How do people spend their money in Baghdad?

We asked thousands of people about their spending habits and expenditure breaks. Below are their answers.

The percentage figures in this section are percentages of total spending not income. If you would like to see the percentage of expenses as related to income or salary, see other sections.

Housing Expenditure24%

24% of total expenses on average (13% to 32%)

LOW$25   32,000 IQD
AVERAGE$250   320,000 IQD
HIGH$3,700   4.9M IQD
Per Month

People living in Baghdad typically spend from 13% to 32% of their total monthly expenditure on housing with 24% being the average. The average spend on housing is 320,000 IQD with expenditure ranging from 32,000 IQD to 4.9M IQD. This cost mainly goes for rent but it also includes other accommodation-related expenses. Housing costs are highest for families and lowest for students as expected.

Utilities, Electricity, Water, Internet, Mobile7%

7% of total expenses on average (4% to 11%)

LOW$3.7   4,800 IQD
AVERAGE$37   48,000 IQD
HIGH$550   720,000 IQD
Per Month

Utility expenditure like electricity, water, and gas in Baghdad ranges from 4% to 11% of total expenses with 7% being the average. The average monthly cost of utilities is 48,000 IQD with 4,800 IQD and 720,000 IQD being the upper and lower limits.

Transport, Fuel, Commute7%

7% of total expenses on average (3% to 11%)

LOW$7.9   10,000 IQD
AVERAGE$79   100,000 IQD
HIGH$1,200   1.5M IQD
Per Month

Fuel consumption and cost of transport depend heavily on whether you live near your work or school, but roughly speaking you would expect to spend from 10,000 IQD to 1.5M IQD on commuting with 100,000 IQD being the norm for most people in one month. This means that money spent on transport constitutes about 7% of total spending on average but can go as low as 3% or as high as 11%.

Food and Groceries Cost28%

28% of total expenses on average (20% to 34%)

LOW$19   25,000 IQD
AVERAGE$190   250,000 IQD
HIGH$2,900   3.8M IQD
Per Month

The average outlay on groceries in a month in Baghdad is 250,000 IQD. The cost of groceries can range between 25,000 IQD to 3.8M IQD. People spend on average about 28% on food and groceries with upper and lower bounds of 20% and 34% respectively.

Healthcare and Medical Services10%

10% of total expenses on average (5% to 13%)

LOW$4.8   6,300 IQD
AVERAGE$48   63,000 IQD
HIGH$720   940,000 IQD
Per Month

People in Baghdad allocate 5% to 13% of their total monthly expenditure to healthcare including health insurance and out-of-pocket medical expenses. The average spending is around 10%. The range of medical expenses range from 6,300 IQD to 940,000 IQD with 63,000 IQD being the norm.

Leisure and Shopping5%

5% of total expenses on average (2% to 9%)

LOW$3.1   4,000 IQD
AVERAGE$31   40,000 IQD
HIGH$460   610,000 IQD
Per Month

This category mostly contains discretionary or non-essential expenses but also some non-discretionary spending like furniture for example. The monthly expenses range from 4,000 IQD to 610,000 IQD with 40,000 IQD being the average. Speaking of percentages, that equates to 2% to 9% of total expenses with an average of 5% for most residents.

Education and Schooling5%

5% of total expenses on average (3% to 11%)

LOW$4.6   6,100 IQD
AVERAGE$46   61,000 IQD
HIGH$690   910,000 IQD
Per Month

Spending on education can vary drastically between different people. While working singles can spend 0% on education, families and students' expenditure can reach up to 22%. On average, education constitutes 5% of the monthly expenditure with 3% and 11% being the lower and upper bounds respectively. The average reported education cost is 61,000 IQD per month with 6,100 IQD being the minimum spent amount and 910,000 IQD being the maximum.

Other Expenses13%

13% of total expenses on average (8% to 20%)

LOW$10   14,000 IQD
AVERAGE$100   140,000 IQD
HIGH$1,600   2.1M IQD
Per Month

Prices and cost of goods and services in Baghdad

Chart showing the prices and cost of grocery, food, restaurant meals, market, and beverages in Baghdad

Dining, food, and beverages costs


Fast food combo meal

1,200 IQD 2,500 IQD 4,100 IQD
MINIMUM AVERAGE MAXIMUM
$0.95 $1.9 $3.2

Restaurant meal for one

4,300 IQD 6,500 IQD 13,000 IQD
MINIMUM AVERAGE MAXIMUM
$3.3 $4.9 $9.9

Fine dining meal for one

8,300 IQD 12,000 IQD 50,000 IQD
MINIMUM AVERAGE MAXIMUM
$6.3 $9.5 $38

Cappuccino or latte

1,100 IQD 1,700 IQD 2,500 IQD
MINIMUM AVERAGE MAXIMUM
$0.81 $1.3 $1.9

Grocery and market costs


Milk large bottle

860 IQD 1,000 IQD 1,300 IQD
MINIMUM AVERAGE MAXIMUM
$0.66 $0.79 $0.99

12 eggs

620 IQD 820 IQD 1,200 IQD
MINIMUM AVERAGE MAXIMUM
$0.47 $0.63 $0.94

Fresh whole chicken

1,500 IQD 1,900 IQD 2,700 IQD
MINIMUM AVERAGE MAXIMUM
$1.1 $1.5 $2.1

Pack of beef

1,800 IQD 2,700 IQD 5,400 IQD
MINIMUM AVERAGE MAXIMUM
$1.4 $2.1 $4.1

Medium bag of rice

650 IQD 890 IQD 1,300 IQD
MINIMUM AVERAGE MAXIMUM
$0.50 $0.68 $0.97

Bag of tomatos

250 IQD 330 IQD 620 IQD
MINIMUM AVERAGE MAXIMUM
$0.19 $0.25 $0.47

Bag of apples

450 IQD 590 IQD 970 IQD
MINIMUM AVERAGE MAXIMUM
$0.34 $0.45 $0.74
Chart showing the prices and cost of commute, travel, and transportation in Baghdad

Commute, travel, and transportation costs


20 minutes taxi ride

1,100 IQD 1,300 IQD 2,600 IQD
MINIMUM AVERAGE MAXIMUM
$0.83 $0.99 $2

Average car full tank

6,200 IQD 8,300 IQD 17,000 IQD
MINIMUM AVERAGE MAXIMUM
$4.7 $6.3 $13

Average car 1-day rental

5,800 IQD 7,700 IQD 12,000 IQD
MINIMUM AVERAGE MAXIMUM
$4.4 $5.9 $8.8

Average car price

3M IQD 5.9M IQD 7.9M IQD
MINIMUM AVERAGE MAXIMUM
$2,300 $4,500 $6,000

Bus ticket one way

200 IQD 300 IQD 590 IQD
MINIMUM AVERAGE MAXIMUM
$0.15 $0.23 $0.45

Car Service

8,100 IQD 12,000 IQD 24,000 IQD
MINIMUM AVERAGE MAXIMUM
$6.2 $9.2 $18
Chart showing the prices and cost of utility, energy, water, and gas in Baghdad

Utility cost (monthly)


Utility Bill - Individual

7,300 IQD 52,000 IQD 580,000 IQD
MINIMUM AVERAGE MAXIMUM
$5.6 $40 $440

Utility Bill - Couple

7,700 IQD 56,000 IQD 630,000 IQD
MINIMUM AVERAGE MAXIMUM
$5.9 $43 $480

Utility Bill - Family

14,000 IQD 72,000 IQD 720,000 IQD
MINIMUM AVERAGE MAXIMUM
$11 $55 $550

Internet and cable

6,500 IQD 13,000 IQD 17,000 IQD
MINIMUM AVERAGE MAXIMUM
$5 $9.9 $13

Mobile phone charges

4,200 IQD 7,000 IQD 21,000 IQD
MINIMUM AVERAGE MAXIMUM
$3.2 $5.4 $16

Leisure and activities costs


Movie ticket

2,800 IQD 3,700 IQD 5,500 IQD
MINIMUM AVERAGE MAXIMUM
$2.1 $2.8 $4.2

One month gym membership

10,000 IQD 13,000 IQD 25,000 IQD
MINIMUM AVERAGE MAXIMUM
$7.7 $9.7 $19
Chart showing the prices and cost of clothing and accessories in Baghdad

Cloths and accessories costs


Pair of jeans or pants

7,600 IQD 11,000 IQD 16,000 IQD
MINIMUM AVERAGE MAXIMUM
$5.8 $8.3 $12

Woman dress

7,400 IQD 10,000 IQD 33,000 IQD
MINIMUM AVERAGE MAXIMUM
$5.6 $7.8 $25

Woman shoes

6,500 IQD 8,800 IQD 21,000 IQD
MINIMUM AVERAGE MAXIMUM
$5 $6.8 $16

Men's shoes

5,800 IQD 7,000 IQD 14,000 IQD
MINIMUM AVERAGE MAXIMUM
$4.4 $5.4 $11

Men suit

6,500 IQD 8,100 IQD 43,000 IQD
MINIMUM AVERAGE MAXIMUM
$5 $6.2 $33

Regular t-shirt

3,300 IQD 4,400 IQD 13,000 IQD
MINIMUM AVERAGE MAXIMUM
$2.5 $3.4 $10
Chart showing the prices and cost of housing, accommodation, and rent in Baghdad

Housing costs / monthly rent


Studio apartment

120,000 IQD 180,000 IQD 480,000 IQD
MINIMUM AVERAGE MAXIMUM
$91 $140 $360

1-bedroom apartment

180,000 IQD 290,000 IQD 730,000 IQD
MINIMUM AVERAGE MAXIMUM
$140 $220 $560

2-bedroom apartment

250,000 IQD 370,000 IQD 1,000,000 IQD
MINIMUM AVERAGE MAXIMUM
$190 $290 $760

Housing costs / Buying


Studio apartment

25M IQD 37M IQD 75M IQD
MINIMUM AVERAGE MAXIMUM
$19,000 $29,000 $57,000

1-bedroom apartment

31M IQD 51M IQD 190M IQD
MINIMUM AVERAGE MAXIMUM
$23,000 $39,000 $150,000

2-bedroom apartment

48M IQD 140M IQD 290M IQD
MINIMUM AVERAGE MAXIMUM
$36,000 $110,000 $220,000
Chart showing the prices and cost of furniture in Baghdad

Furniture Costs


King Size Bed

120,000 IQD 150,000 IQD 200,000 IQD
MINIMUM AVERAGE MAXIMUM
$94 $120 $160

Double Bed

84,000 IQD 130,000 IQD 160,000 IQD
MINIMUM AVERAGE MAXIMUM
$64 $96 $120

Single Bed

76,000 IQD 99,000 IQD 130,000 IQD
MINIMUM AVERAGE MAXIMUM
$58 $76 $98

Living Room

150,000 IQD 190,000 IQD 660,000 IQD
MINIMUM AVERAGE MAXIMUM
$110 $140 $500

Dining Table

61,000 IQD 82,000 IQD 150,000 IQD
MINIMUM AVERAGE MAXIMUM
$47 $62 $120

Sofa or Couch

84,000 IQD 110,000 IQD 250,000 IQD
MINIMUM AVERAGE MAXIMUM
$64 $87 $190
Chart showing the prices and cost of electronic devices and appliances in Baghdad

Electronics and House Appliance Costs


TV Set

84,000 IQD 130,000 IQD 250,000 IQD
MINIMUM AVERAGE MAXIMUM
$64 $96 $190

Fridge or Freezer

76,000 IQD 120,000 IQD 160,000 IQD
MINIMUM AVERAGE MAXIMUM
$58 $90 $120

Washing Machine

93,000 IQD 130,000 IQD 240,000 IQD
MINIMUM AVERAGE MAXIMUM
$71 $100 $180

Stove or Cooker

88,000 IQD 110,000 IQD 150,000 IQD
MINIMUM AVERAGE MAXIMUM
$67 $86 $120

Mobile Phone

110,000 IQD 130,000 IQD 180,000 IQD
MINIMUM AVERAGE MAXIMUM
$80 $96 $140

Laptop or Computer

120,000 IQD 140,000 IQD 260,000 IQD
MINIMUM AVERAGE MAXIMUM
$90 $110 $200

Retirement, pension plans, and life after work in Baghdad

What does the retirement lifestyle look like in Baghdad and how much retirement savings are required?

Retirement age

The retirement age for most employees in is 65 years. Specific retirement ages can vary based on factors like occupation, gender, years of contribution, and location. It is not entirely unlikely for people to retire either before or after this age.

Retirement planning and savings

There are many retirement saving options, some are personally initiated and others are government-sponsered. Regardless of the source of savings, the minimum amount of money that needs to be put aside to ensure a peaceful and comfortable retirement at each age can be found in the table below. This data is largely approximated and can vary drastically based on individual needs and situations. Treat these figures as a general guideline.


The typical saved amount of money you should have at every age as multiples of monthly salary:
AgeAmount
255x monthly salary at age 25
3010x monthly salary at age 30
3515x monthly salary at age 35
4025x monthly salary at age 40
4532x monthly salary at age 45
5048x monthly salary at age 50
5556x monthly salary at age 55
6064x monthly salary at age 60
6578x monthly salary at age 65

The typical average saved amount of money you should have at every age in Baghdad:
AgeAmount
252.4M IQD
304.9M IQD
358.7M IQD
4013M IQD
4518M IQD
5025M IQD
5531M IQD
6039M IQD
6544M IQD

Retirement Income Distribution

We asked residents about their retirement income sources and below are the results.

Source% People
Pensions12%
Savings23%
Investments12%
Social Security7%
Annuities7%
Part-time Job13%
Real Estate18%
Dividends and Interest7%

Retirement Monthly Expenses in Baghdad

82,000 IQD
$62
740,000 IQD
$560
8.2M IQD
$6,200
MINIMUM AVERAGE MAXIMUM
Financial goals and targets of people living in Baghdad

Financial goals of people in Baghdad

In an attempt to understand the economic situation in Baghdad, we asked participants about their financial targets. By knowing what the population in general is trying to achieve, we can shed light on the economic outlook, cost of living, and quality of life in general.


Financial Goal% People
Emergency Fund8%
Debt Reduction40%
Retirement Savings9%
Education Funding7%
Homeownership18%
Investing7%
Travel or Lifestyle8%
Healthcare Expenses12%
Financial Independence6%

Around 8% of those who participated in the survey said that their main goal is to establish an emergency fund to cover unexpected expenses while 40% said their number one priority is to pay off high-interest debt or loans and improve credit. 9% of surveyed people confirmed that saving for retirement to ensure a comfortable lifestyle in the final years is their main target. Around 7% reported that their priority is saving for the tuition fees and education costs of their children while 18% choose to buy a home or pay off existing mortgage before other things. 7% of the population would like to build wealth through investments such as stocks, bonds, mutual funds, or real estate. For 8% of people, saving for vacations or upgrading their lifestyle is the number one concern. Approximately 12% of the residents said that saving for healthcare expenses including insurance premiums is their main goal.

The figures displayed here are inclusive of everything: housing, travel, groceries, healthcare, etc.

Singles

The average monthly expense for a single person living in Baghdad is 1,000,000 IQD. Expenses can range from 140,000 IQD at the minimum level to 11M IQD at the highest end.


Couples

The average monthly spending of couples in Baghdad is 1.5M IQD. Expenditure can range from 230,000 IQD to 14M IQD per month.


Families

The average cost of living for families in Baghdad is 1.7M IQD per month. Families spend anywhere from 350,000 IQD to 17M IQD.


Students

The average monthly expenditure for students in Baghdad is 720,000 IQD. Students spend from 110,000 IQD to 8M IQD per month.


Spending behavior can change drastically from one person to another. It is best to consider the minimum, average, and maximum spending together.
A typical and healthy budgeting structure. The 50-30-20 rule

A typical and healthy budgeting structure

The 50/30/20 rule

Spending among different people can vary significantly based on factors such as their income, lifestyle, location, and personal preferences. A commonly used guideline for budgeting is the 50/30/20 rule, which suggests allocating your income into three main categories in the following percentages.

  • 50% for needs and financial obligations

    This category includes essential expenses like housing, utilities, groceries, transportation, and healthcare.

  • 30% for wants and discretionary spending

    This category covers discretionary spending on non-essential items, such as dining out, entertainment, travel, and other lifestyle choices.

  • 20% for savings and emergency fund

    This is the percentage that must be allocated to savings, emergency funds, and retirement accounts.

About financial planning, money management, and household budgeting

The 50/30/20 rule is used as a general guideline but may not be the best choice for all people. There are in fact many budgeting plans out there like the 70/20/10 and the 60/20/20 rules, all claiming to be the best. More important than all of this is to establish financial discipline by creating a budget tailored to your specific financial goals and situation. It is very important that your financial outflow be less than your income to maintain a healthy cash flow.

Reasons that make it difficult for people to save money in Baghdad

Saving Challenges in Baghdad

Reasons that make it difficult for people to save money

We wanted to understand what is stopping people from maximizing their savings in Baghdad. Listed below are the answers given by the survey participants.


Reason% People
Low Income5%
High Expenses8%
Debt and Loans15%
Lack of Budgeting Skills11%
Impulsive Spending11%
Financial Emergencies7%
Living the moment6%
Will do it later20%
Inflation12%
Social Pressure3%
Market Instability2%

Around 5% of the people said that their salary is too low to accommodate a portion for savings while 8% said that the high cost of living leaves little room for savings. 15% of the residents said that they are burdened with debt and find it challenging to save money. 11% reported that they just don't have the knowledge or discipline to create and stick to a budget, leading to overspending and an inability to save. 11% blamed impulsive spending as the reason for saving inability. Around 7% said that unexpected expenses like medical bills or car repairs are derailing their savings goals. 6% bluntly said that they don't see the purpose of it and prefer to live each day to the fullest. 20% reported that they understand the value of saving but are putting off saving for the future, thinking they have plenty of time to start later. 12% blamed inflation, saying that every time they save some money they end up using it immediately. A surprising 3% said that social pressure and keeping up with peers or social expectations makes them overspend. Lastly, 2% blamed market instability and price fluctuations.

Where do people choose to put their savings in Baghdad

Typical saving choices for people in Baghdad

Where do people choose to put their savings?


Saving Type% People
Emergency Funds12%
Gold12%
Savings Accounts17%
Retirement Accounts10%
Cash Savings19%
Real Estate9%
Investment5%
Stocks5%
Bonds5%
Mutual Funds2%
Certificates of Deposit3%
Financial literacy and difficulty in budgeting and financial planning in Baghdad

Financial Literacy in

Financial literacy is the knowledge of concepts and principles related to personal finance that allow individuals to make informed decisions regarding their money such as budgeting, saving, investing, borrowing, managing debt, financial risk management, and planning.

Financial Leteracy51%


We asked residents of whether they acquired any adequate personal financial training in their lives. Approximately 49% of the people who participated in the survey said that they are not well informed about the topics of budgeting, saving, etc., and just manage things based on their own experience, while 51% said that they know about the general principles of personal finance from sources other than their own experience.


Difficulty in Budgeting and Financial Planning

We wanted to understand whether residents of have problems or difficulties in managing their expenditures and savings so we asked people one simple question: do you struggle with your personal finances? 40% of the participants reported that they indeed struggle in creating budgets and in organizing their finances while 60% said that they have everything under control.

Struggles with finance40%

Easily manages finances60%

Expenditure to Income Ratio in Baghdad

One of the most definite ways to determine how affordable a place is measuring the ratio of expenses to salary. A high expense-to-income to ratio indicates a high cost-of-living index while a low expenditure-to-salary ratio means the place is affordable to live in.

Cost of living and expenditure to income ratio in Baghdad

Spending to Income Ratio

100%

92% to 110%

( expenditure / income ) x 100


Expense to income distribution levels

Spending To Income Ratio% People
< 50%5%
50% - 60%10%
60% - 70%16%
70% - 80%25%
80% - 90%19%
90% - 100%10%
100% - 110%6%
110% - 120%4%
120% - 130%3%
130% - 140%2%
> 140%2%

Interpretation and Analysis

The average spending-to-salary ratio in Baghdad is 100% This means that on average, people spend around 100% of their income for living. According to the distribution table, 16% of the population spend approximately 60% to 70% of their income every month.


How can spending be more than income?

A value higher than 100% means that the expenditure of those people is higher than their income. They are spending more than what they earn. This is possible in two scenarios. They are either borrowing from their savings to survive or they are borrowing from other sources (relatives, friends, banks, etc.). More about this in the debt section.



Individual
92%
Spending-Income-Ratio
85%
100%

Couple
99%
Spending-Income-Ratio
91%
110%

Family
100%
Spending-Income-Ratio
94%
110%
Chart showing the percentage of people who are in debt in Baghdad

Debt, loans, and mortgages in Baghdad


Percentage of people who are in debt


In Debt
27%
Debt Free
73%

According to the survey, 27% of the people in Baghdad have some kind of debt, loan, mortgage, or credit card payments while 73% reported that they don't have financial obligations to banks.


Chart showing debt-to-income ratio in Baghdad

Debt-to-income ratio in Baghdad

Debt to income ratio

32%

24% to 41%

( monthly debt payment / monthly income ) x 100

Interpretation

The debt-to-income ratio measures the percentage of income being paid as debt settlement across the population. It is calculated by dividing the monthly debt settlement payment of an individual by their monthly income. Based on collected data, approximately 32% of the people's monthly income in Baghdad goes to debt settlement.


Debt levels

Monthly debt settlement payment as percentage of monthly income

Debt-to-income ratio% People
> 60%3%
50% - 60%16%
40% - 50%14%
30% - 40%16%
20% - 30%12%
10% - 20%14%
0% - 10%26%

According to our data, 3% of the debtors in Baghdad pay 60%+ of their income as debt settlement while 16% of the people pay 50% to 60% of their income for the same, which is quite an alarming financial situation for those individuals. 14% of people in debt dedicate 40% to 50% of their income to loan and mortgage payments while 16% dedicated 30% to 40% of income for same. Things are looking brighter for 12% of individuals as they only pay 20% to 30% of their income for loan and credit card repayment.


Distribution by type of debt in Baghdad

Debt% People
Real Estate Mortgage10%
Auto Loan17%
Student Loan4%
Credit Card28%
Personal Loan41%

10% of debtors in Baghdad confirm that real estate mortgages constitutes the main part of their outstanding debt while 28% say that credit card payments are the reason they are in debt. Auto loans were the main type of debt for 17% of people and personal loans rose at 41%. Lastly, student loans are the main source of debt for 4% of debtors in Baghdad.


About credit score and debt management

Managing debt is a critical aspect of maintaining a favorable credit score. Debt reduction is the first thing you should do improve your financial situation. Getting rid of debt takes precedence over saving money because of interest rates.

Good debt vs. Bad debt

Not all debt is bad. Good debt typically refers to borrowing money for investments that can increase in value or generate income over time like purchasing a home or acquiring student loans. On the other hand, bad debt involves borrowing for things that fail to generate lasting value like high-interest credit card debt used for non-essential expenses like luxury items or vacations.


Loan Affordability Index in Baghdad

Besides measuring the loan-to-income ratio, we asked residents how many times in a year they defaulted or were unable to pay their due credit card or loan payments on time. Understanding how often people default on their due payments is one of the indicators of the cost of living and economic situation.

Frequency and percentage of people who failed to pay their monthly credit card or loan payments on time last year.

Frequency% People
Never52%
Once a year23%
Twice a year12%
Three times a year9%
Four times a year4%

Emergency Funds

An emergency fund is a financial safety net comprised of easily accessible savings set aside to cover unexpected expenses or financial emergencies, typically amounting to three to six months' worth of living expenses. We asked residents whether they have an emergency fund and the answers were as follows.

Yes56%

No44%


Based on the survey, 44% of the people living in Baghdad said that they don't have an emergency fund while 56% said that they do.

Housing and accommodation affordability, property price to income ratio, rent to income ratio, and housing affordability index chart in Baghdad

Housing costs, accommodation, and housing affordability in Baghdad

Rental costs and house/apartment prices can vary drastically between different areas and locations.


Rent Cost in Baghdad

Monthly Rent Prices

Studio apartment monthly rent cost

120,000 IQD 180,000 IQD 480,000 IQD
MINIMUM AVERAGE MAXIMUM
$91 $140 $360

1-bedroom apartment monthly rent cost

180,000 IQD 290,000 IQD 730,000 IQD
MINIMUM AVERAGE MAXIMUM
$140 $220 $560

2-bedroom apartment monthly rent cost

250,000 IQD 370,000 IQD 1,000,000 IQD
MINIMUM AVERAGE MAXIMUM
$190 $290 $760

3-bedroom apartment monthly rent cost

310,000 IQD 510,000 IQD 1.4M IQD
MINIMUM AVERAGE MAXIMUM
$230 $390 $1,100

Furnished apartment monthly rent cost

590,000 IQD 1.5M IQD 2.9M IQD
MINIMUM AVERAGE MAXIMUM
$450 $1,100 $2,200

Townhouse monthly rent cost

480,000 IQD 720,000 IQD 2.1M IQD
MINIMUM AVERAGE MAXIMUM
$370 $550 $1,600

House monthly rent cost

590,000 IQD 1.5M IQD 2.9M IQD
MINIMUM AVERAGE MAXIMUM
$450 $1,100 $2,200

Villa monthly rent cost

710,000 IQD 1.8M IQD 2.9M IQD
MINIMUM AVERAGE MAXIMUM
$550 $1,400 $2,200

The monthly rental cost of a studio apartment in Baghdad ranges between 120,000 IQD and 480,000 IQD, meanwhile the cost of monthly rental of a one-bedroom apartment can be anywhere from 180,000 IQD to 730,000 IQD. Two-bedroom rentals rate ranges between 250,000 IQD and 1,000,000 IQD per month. The monthly rental for a three-bedroom apartment ranges from 310,000 IQD to 1.4M IQD. The average rent of a townhouse in Baghdad is around 720,000 IQD while house rental costs can be as high as 1.5M IQD per month. Finally, if you want to rent a villa, expect to pay anywhere from 710,000 IQD to 2.9M IQD per month.



Apartment and house prices in Baghdad

Cost of buying a property

Studio apartment price

25M IQD 37M IQD 75M IQD
MINIMUM AVERAGE MAXIMUM
$19,000 $29,000 $57,000

1-bedroom apartment price

31M IQD 51M IQD 190M IQD
MINIMUM AVERAGE MAXIMUM
$23,000 $39,000 $150,000

2-bedroom apartment price

48M IQD 140M IQD 290M IQD
MINIMUM AVERAGE MAXIMUM
$36,000 $110,000 $220,000

3-bedroom apartment price

160M IQD 240M IQD 730M IQD
MINIMUM AVERAGE MAXIMUM
$120,000 $190,000 $560,000

Townhouse price

220M IQD 500M IQD 1,900M IQD
MINIMUM AVERAGE MAXIMUM
$160,000 $380,000 $1.4M

House price

260M IQD 1,500M IQD 2,200M IQD
MINIMUM AVERAGE MAXIMUM
$200,000 $1.2M $1.7M

Villa price

310M IQD 1,700M IQD 2,600M IQD
MINIMUM AVERAGE MAXIMUM
$230,000 $1.3M $2M

The average price of a studio apartment in Baghdad can range from 25M IQD to 75M IQD depending on location. One bedroom cost can be anywhere from 31M IQD to 190M IQD. A villa can cost you 1,700M IQD on average with prices ranging from 310M IQD to 2,600M IQD.


If you're leasing or purchasing, housing costs in Baghdad will probably constitute your biggest expenditure, yet it's an area where you wield considerable influence. This is due to the substantial variance in housing prices across communities. Keep in mind the location of your workplace and the accessibility of essential amenities to prevent negating the savings from lower rental rates with increased transportation expenses.

House / apartment prices to income ratio


Property price to income ratio

( average property price / average monthly income ) x 100


41 x114 monthly income 258
MINIMUM AVERAGE MAXIMUM

Property prices in Baghdad can be x114 to x258 multiples of the monthly income depending on the property and the income of the person. On average, property prices are approximately x114 multiples of the average monthly salary in Baghdad.



Rent to income ratio


Rent to income ratio

( monthly rental / monthly income ) x 100


22% 34% of income 46%
MINIMUM AVERAGE MAXIMUM

The average rent-to-income ratio in Baghdad is around 34%. This means that people pay 34% of their income for rent. Those figures can range from 22% to 46% depending on the salary, location, and type of property.


The housing-to-income ratio is a very important metric to evaluate and measure how affordable living is in a particular area, city, or country since housing comprises the biggest chunk of expenditure. A higher housing to income ratio means that the place is relatively expensive. The figure by itself does tell much. It only starts to make sense when comparing the housing to income ratio across different locations.

Housing affordability index

The housing affordability index measures how affordable accommodation is in a particular place. This can measured in multiple ways, the most common being housing expenditure to total expenditure ratio and the rent to income ratio. The housing expenditure ratio is a figure reported by individuals on the percentage they allocate for housing. Rent to income ratio is calculated by dividing the average monthly rent by the average income. Because these values are both percentages, we can find their average and get the best of the two worlds.

Housing Affordability Index
26%

Property Taxes

Real estate owners pay property taxes to local tax authorities, which are determined by the assessed value of their property. Typically, these taxes are paid once a year. Property tax funds contribute to community development, financing infrastructure improvements, public services, and local education initiatives.


FROM
1.8%
AVERAGE
2.8%
TO
3.8%

Home Maintenance Costs

Home maintenance costs encompass various expenses associated with the upkeep and repair of a residence. These expenditures include regular tasks such as lawn care, pest control, and HVAC system servicing, as well as occasional repairs and renovations like fixing leaks, painting, or replacing appliances.


2,200 IQD 22,000 IQD 330,000 IQD
MINIMUM AVERAGE MAXIMUM

Urban vs. rural living costs

Urban living typically entails higher housing and transportation costs due to demand and limited space, while rural areas generally offer lower housing expenses but may have higher prices for goods and services. The differnce in rental rates between urban areas and rural areas can be as high as 300% in some cases.

Percentage of people who manage to save money from their income every month in Baghdad

How much money can you save in Baghdad every month?

We asked thousands of people what percentage of their income can they save in a month. Below are the answers.


What percentage of people in Baghdad manage to save money from their income every month?


Saving Money
67%
Not Saving
33%

Almost 67% of the surveyed people in Baghdad said that they can save some money at the end of each month while 33% said that aren't saving anything.


Percentage of people saving money by population group in Baghdad

GroupSaversNon Savers
Singles68%32%
Couples66%34%
Families57%43%

Savings-to-Income Ratio

The savings-to-income ratio is measured as the percentage of income that people save over a specific period and it is simply calculated by dividing the saved money by total income and then multiplying the result by 100. (Savings / Income) x 100.


Savings to income ratio in Baghdad

Saving to Income Ratio

8.2% 15% of income 32%
MINIMUM AVERAGE MAXIMUM

Average Monthly Saved Amount

37,000 IQD
$29
370,000 IQD
$290
5.6M IQD
$4,300
MINIMUM AVERAGE MAXIMUM

For most people, 8.2% to 32% of their monthly income is what they can allocate to their savings, with 15% being the average. The amount of money that people can save is approximately 370,000 IQD on average with savings ranging from 37,000 IQD to 5.6M IQD.

68% of surveyed singles reported some of their income going to savings while 66% of couples said the same. 57% of families confirmed their ability to save money.


How much money do people actually save in Baghdad?

The amount of money that people can afford to save depends hugely on their income. It is better to focus on the percentage when trying to understand saving patterns.


Singles

Saving to Income Ratio

12% 20% of income 34%
MINIMUM AVERAGE MAXIMUM

Average Monthly Saved Amount

36,000 IQD
$27
320,000 IQD
$250
3.6M IQD
$2,700
MINIMUM AVERAGE MAXIMUM

Savings to income distribution levels for singles

Saving To Income Ratio% Singles
0% - 10%31%
10% - 20%24%
20% - 30%16%
30% - 40%14%
40% - 50%11%
> 50%4%

Interpretation and Analysis

Singles who can afford to save reported that they allocate from 12% to 34% of their monthly income to savings, with 20% being the average for most singles. The average amount of money that singles are able to save is 320,000 IQD with 36,000 IQD and 3.6M IQD being the minimum and maximum respectively.


Couples

Saving to Income Ratio

9.6% 18% of income 34%
MINIMUM AVERAGE MAXIMUM

Average Monthly Saved Amount

73,000 IQD
$56
470,000 IQD
$360
4.4M IQD
$3,300
MINIMUM AVERAGE MAXIMUM

Savings to income distribution levels for couples

Saving To Income Ratio% Couples
0% - 10%35%
10% - 20%26%
20% - 30%19%
30% - 40%9%
40% - 50%8%
> 50%3%

Interpretation and Analysis

Couples who confirmed their ability to save reported saving equivalent to 9.6% to 34% of their monthly income, with 18% being the average for most couples. The average amount of money that couples can save is 470,000 IQD with 73,000 IQD and 4.4M IQD being the minimum and maximum respectively.


Families

Saving to Income Ratio

7.8% 15% of income 29%
MINIMUM AVERAGE MAXIMUM

Average Monthly Saved Amount

110,000 IQD
$86
560,000 IQD
$430
5.6M IQD
$4,300
MINIMUM AVERAGE MAXIMUM

Savings to income distribution levels for families

Saving To Income Ratio% Families
0% - 10%38%
10% - 20%29%
20% - 30%20%
30% - 40%6%
40% - 50%5%
> 50%2%

Interpretation and Analysis

Families in Baghdad can save anywhere between 7.8% to 29% of their monthly income, with 15% being the average for most families. The average amount of money that families can put aside is 560,000 IQD with 110,000 IQD and 5.6M IQD being the minimum and maximum respectively.

Monthly costs and expenses of energy and basic utilities in Baghdad

Utilities expenditure can vary slightly between different areas and locations.


Energy, electricity, water, gas, internet, and mobile cost in Baghdad

Utility Bill Cost / Electricity + Water + Gas / Individual

7,300 IQD 52,000 IQD 580,000 IQD
MINIMUM AVERAGE MAXIMUM
$5.6 $40 $440

Utility Bill Cost / Electricity + Water + Gas / Couple

7,700 IQD 56,000 IQD 630,000 IQD
MINIMUM AVERAGE MAXIMUM
$5.9 $43 $480

Utility Bill Cost / Electricity + Water + Gas / Family

14,000 IQD 72,000 IQD 720,000 IQD
MINIMUM AVERAGE MAXIMUM
$11 $55 $550

Internet and cable cost

6,500 IQD 13,000 IQD 17,000 IQD
MINIMUM AVERAGE MAXIMUM
$5 $9.9 $13

Mobile phone bill and charges

4,200 IQD 7,000 IQD 21,000 IQD
MINIMUM AVERAGE MAXIMUM
$3.2 $5.4 $16

Because most utility bills club electricity, water, and gas costs in one bill, we can't provide a breakup for each type of utility and will display electricity, gas, and water as single cost.


The average monthly expenditure for individuals on electricty, water, and gas in Baghdad ranges between 7,300 IQD and 580,000 IQD with average being 52,000 IQD, meanwhile the expenditure of couples is slightly higher at 56,000 IQD with 7,700 IQD and 630,000 IQD being the upper and lower limits respectively. As expected, the energy and water consumption of families is the highest among the three groups with an average of 72,000 IQD. The cost of internet and WiFi is unchanged among the three groups and ranges from 6,500 IQD to 17,000 IQD with 13,000 IQD being the average internet bill. Finally, the average monthly mobile charges is around 7,000 IQD but can range between 4,200 IQD and 21,000 IQD depending on consumption. Mobile charges include both calling minutes as well as data packages.


Energy / Utility expense to income ratio


( monthly utility expenses / monthly income ) x 100


4.7% 8.2% of income 13%
MINIMUM AVERAGE MAXIMUM

The average utility-to-income ratio in Baghdad is around 8.2%. This means that people pay 8.2% of their income for energy, water, internet, and mobile charges. Those figures can range from 4.7% to 13% depending on salary and location.

Food Prices, Dining Expenses, and Grocery Costs in Baghdad

Grocery / Food expenditure and prices can vary drastically between different areas and locations.


Prices and cost of goods and services in Baghdad

Dining out, food, and beverages costs. Price variations for common food items.

Fast food combo meal price

1,200 IQD 2,500 IQD 4,100 IQD
MINIMUM AVERAGE MAXIMUM
$0.95 $1.9 $3.2

The average price of a regular combo meal at a fast food outlet or chain like McDonald's, Pizzahut, or KFC in Baghdad is approximatly 2,500 IQD with meal cost ranging from 1,200 IQD to 4,100 IQD. The typical combo meal consists of a burger, french fries, and a drink.

Restaurant meal for one price

4,300 IQD 6,500 IQD 13,000 IQD
MINIMUM AVERAGE MAXIMUM
$3.3 $4.9 $9.9

If you are planning to have a nice meal at a mid-range restaurant, expect to pay anywhere between 4,300 IQD and 13,000 IQD with 6,500 IQD being the average price of a plate for one person at a regular restaurant in Baghdad.

Fine dining meal for one price

8,300 IQD 12,000 IQD 50,000 IQD
MINIMUM AVERAGE MAXIMUM
$6.3 $9.5 $38

The price range of a meal at fine-dining restaurant is 8,300 IQD to 50,000 IQD with the average cost being 12,000 IQD for one person. This is what you would expect to pay a top-tier diner in Baghdad.

Beverage prices, cappuccino, latte etc..

1,100 IQD 1,700 IQD 2,500 IQD
MINIMUM AVERAGE MAXIMUM
$0.81 $1.3 $1.9

The average price of a regular beverage like cappuccino or latte at Starbucks, Costa, or similar coffee shops and cafes in Baghdad is around 1,700 IQD. Price ranges between 1,100 IQD and 2,500 IQD depending on the type of beverage, the size, and optional add-ons.



Grocery and market costs

Large bottle of milk price

860 IQD 1,000 IQD 1,300 IQD
MINIMUM AVERAGE MAXIMUM
$0.66 $0.79 $0.99

The average price of a large bottle of milk in Baghdad is 1,000 IQD. The maximum what you would pay for milk is 1,300 IQD and the minimum being 860 IQD depending on the brand of milk and other properties.

12 eggs price

620 IQD 820 IQD 1,200 IQD
MINIMUM AVERAGE MAXIMUM
$0.47 $0.63 $0.94

A dozen eggs costs around 820 IQD on average with 620 IQD and 1,200 IQD being the lower and upper limits respectively.

Fresh whole chicken price

1,500 IQD 1,900 IQD 2,700 IQD
MINIMUM AVERAGE MAXIMUM
$1.1 $1.5 $2.1

The price range of a fresh whole chicken in Baghdad is between 1,500 IQD and 2,700 IQD depending on the size of the chicken and whether it is oraganic or not. The average price is approximatly 1,900 IQD.

Pack of beef price

1,800 IQD 2,700 IQD 5,400 IQD
MINIMUM AVERAGE MAXIMUM
$1.4 $2.1 $4.1

The price of a regular pack of beef or meat is around 2,700 IQD. A pack of beef contains around 1Kg or 1lb depending on packing.

Medium bag of rice price

650 IQD 890 IQD 1,300 IQD
MINIMUM AVERAGE MAXIMUM
$0.50 $0.68 $0.97

A bag of rice in Baghdad costs around 890 IQD on average with prices rangeing between 650 IQD and 1,300 IQD depending on the brand and quality.

Bag of tomatos price

250 IQD 330 IQD 620 IQD
MINIMUM AVERAGE MAXIMUM
$0.19 $0.25 $0.47

A bag of tomatoes costs anywhere from 250 IQD to 620 IQD. A bag of tomatoes denotes 1Kg or 1lb depending on location.

Bag of apples price

450 IQD 590 IQD 970 IQD
MINIMUM AVERAGE MAXIMUM
$0.34 $0.45 $0.74

A bag of apples costs 590 IQD on average. A bag of apples denotes 1Kg or 1lb depending on location.


Grocery and food expenditure to income ratio


( monthly grocery expenses / monthly income ) x 100


22% 31% of income 38%
MINIMUM AVERAGE MAXIMUM

The average grocery-to-income ratio in Baghdad is around 31%. This means that people spend 31% of their income on grocery and basic household items. The expenditure can range from 22% to 38% depending on salary and location.


Expenditure on food and grocery for every population group

A single person living alone spends approximately 150,000 IQD per month on grocery and food with expenditure fluctuating between 20,000 IQD and 1.6M IQD depending on location and the type of person. The average cost of food and groceries for a couple is around 180,000 IQD per month. That number can be get as low as 28,000 IQD or a high as 1.7M IQD. Families' spending on grocery ranges from 54,000 IQD to 2.7M IQD with the location, income, and size of the family being the most determinite factors.

Cost of living comparison by city

#1 Al-Mawsil

The average cost of living in Al-Mawsil is 570,000 IQD, which is 52,000% more than the country average. Al-Mawsil is ranked first in Iraq in terms of expendenture and cost of living.


#2 Kirkuk

The average cost of living in Kirkuk is 660,000 IQD, which is 60,000% more than the country average. Kirkuk is ranked second in Iraq in terms of expendenture and cost of living.


#3 Irbil

The average cost of living in Irbil is 750,000 IQD, which is 68,000% more than the country average. Irbil is ranked third in Iraq in terms of expendenture and cost of living.


#4 An-Najaf

The average cost of living in An-Najaf is 850,000 IQD, which is 77,000% more than the country average. An-Najaf is ranked fourth in Iraq in terms of expendenture and cost of living.


#5 Al-Basrah

The average cost of living in Al-Basrah is 960,000 IQD, which is 87,000% more than the country average. Al-Basrah is ranked fifth in Iraq in terms of expendenture and cost of living.


#6 Baghdad

The average cost of living in Baghdad is 1.1M IQD, which is same as the country average. Baghdad is ranked sixth in Iraq in terms of expendenture and cost of living.


Published: June 25, 2024   Last Update: April 14, 2025



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