Cost Of Living For a Couple in Baghdad 2025

Average monthly spending for couples in Baghdad

How much money does a couple need in a month to survive in Baghdad?

Couples in Baghdad spend around 1.4M IQD per month on average. Depending on the lifestyle, a couple can survive with a monthly budget as low as 450,000 IQD or as high as 7.3M IQD. Location and income are very important factors and have a huge influence on expenditure and budget.

Couple expenditure to income ratio in Baghdad

Analysing the how affordable it is for couples to live 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. Couples usually spend a larger chunk of their income than other population groups. A typical and healthy expenditure percentage for a couple of four ranges between 70% to 80%.

Couples in Baghdad spend around 94% of their monthly income. Some couples spend as low as 86% of their income while some as high as 100%.

How do couples spend their money in Baghdad?

We asked thousands of couples about their spending habits and expenditure break down.

Housing and accomodation expenditure for couples

Couples in Baghdad typically spend from 20% to 37% of their total monthly expenditure on housing with 27% being the average. The average monthly spend on housing is 460,000 IQD with expenditure ranging from 150,000 IQD to 2.5M IQD. This cost mainly goes for rent but it also includes other accommodation-related expenses.

Electricity, utilities, energy, water, internet, and mobile expenditure for couples

Utility expenditure like electricity, water, and gas in Baghdad ranges from 5% to 11% of total expenses with 7% being the average for most couples. The average monthly cost of utilities is 61,000 IQD with 18,000 IQD and 400,000 IQD being the upper and lower limits for a couple of four.

Transport, fuel, and commute expenditure for couples

Fuel consumption and cost of transport depend heavily on whether a couple resides near school and work, but roughly speaking a couple would expect to spend from 54,000 IQD to 870,000 IQD in a month on commuting with 160,000 IQD being the norm for most couples. This means that money spent on transport constitutes about 9% of total spending on average but can go as low as 3% or as high as 14%.

Food, groceries, and basic shopping expenditure for couples

The average outlay on groceries and basic houshold items for a typical couple in a month in Baghdad is 190,000 IQD. The cost of groceries can range between 64,000 IQD to 1M IQD. Couples spend on average about 17% on food and groceries with upper and lower bounds of 12% and 22% respectively.

Healthcare and medical services expenditure for couples

Couples in Baghdad allocate 8% to 18% of their total monthly expenditure to healthcare including health insurance and out-of-pocket medical expenses. The average spending on medical services and clinic visits is around 14%. The range of medical expenses range from 50,000 IQD to 800,000 IQD with 150,000 IQD being the norm for most couples.

Leisure and shopping expenditure for couples

This category mostly contains discretionary or non-essential expenses but also some non-discretionary spending like furniture for example. The monthly expenses range from 27,000 IQD to 440,000 IQD with 82,000 IQD being the average. Speaking of percentages, that equates to 1% to 7% of total expenses with an average of 4% for most couples.

Education and schooling expenditure for couples

Spending on education can vary drastically between different couples. On average, education constitutes 1% of the monthly expenditure of couples with 0.00% and 3% being the lower and upper bounds respectively. The average reported education cost is 27,000 IQD per month with 9,100 IQD being the minimum spent amount and 150,000 IQD being the maximum.

What percentage of couples in Baghdad are able to save money and how much can they save?

Percentage of couples that reported their ability to save money

Almost 63% of surveyed couples in Baghdad said that they can save some money at the end of each month while 37% reported that they have to utilize their whole income to survive.

How much money do couples manage to add to their savings?

Saving to Income Ratio

Average Monthly Saved Amount

Savings to income distribution levels for couples

Interpretation and Analysis

Couples that are able to save money can put anywhere from 9.1% to 32% of their monthly income to their savings, with 17% being the average for most couples. The average monthly amount of money that couples can put aside is 440,000 IQD with 150,000 IQD and 2.3M IQD being the minimum and maximum respectively.

Saving Challenges in Baghdad

Reasons that make it difficult for couples to save money

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

Around 5% of the couples 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% of couples 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.

Typical saving choices for couples in Baghdad

Where do people choose to put their savings?

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

Affordable living in Baghdad

Income and cost of living compatibility

We asked couples one simple question and recorded their answers.

Is it affordable or economical to live in Baghdad?

Around 64% of surveyed couples think that living in Baghdad is affordable with proper budgeting while 36% reported that it is just too expensive and not affordable even with frugality and thriftness.

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 couples how easily cost-cutting is and the answers were distributed as follows:

Plenty of low-cost options65%

Few low-cost options35%

Based on the survey, 65% of the couples living in Baghdad have no problem finding low-cost alternatives to support a frugal lifestyle while 35% think that thriftness is difficult due to scarcity in discount markets and secondhand outlets.

Emergency Funds For Couples

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 couples of Baghdad whether they have an emergency fund and the answers were as follows.

Yes64%

No36%

Based on the survey, 36% of the couples living in Baghdad said that they don't have an emergency fund while 64% said that they do.

Financial Literacy in Iraq

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 couple guardians and parents in Baghdad 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 couples of Iraq 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%

Financial goals of couples 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.

Around 8% of couples 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.

Debt, loans, and mortgages in Baghdad

Percentage of couples who are in debt

According to the survey, 31% of the couples in Baghdad have some kind of debt, loan, mortgage, or credit card payments while 69% reported that they don't have financial obligations to banks.

Debt-to-income ratio in Baghdad

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 36% of a couple's monthly income in Baghdad goes to debt settlement.

Debt levels

Monthly debt settlement payment as percentage of monthly income

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

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.

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 couples of Baghdad 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.

Housing costs, accommodation, and housing affordability in Baghdad

Rent Cost in Baghdad

Monthly Rent Prices

Studio apartment monthly rent cost

100,000 IQD

150,000 IQD

400,000 IQD

MINIMUM

AVERAGE

MAXIMUM

$76

$110

$310

1-bedroom apartment monthly rent cost

150,000 IQD

240,000 IQD

600,000 IQD

MINIMUM

AVERAGE

MAXIMUM

$110

$180

$460

2-bedroom apartment monthly rent cost

200,000 IQD

300,000 IQD

800,000 IQD

MINIMUM

AVERAGE

MAXIMUM

$150

$230

$610

3-bedroom apartment monthly rent cost

240,000 IQD

400,000 IQD

1.1M IQD

MINIMUM

AVERAGE

MAXIMUM

$180

$310

$830

Furnished apartment monthly rent cost

480,000 IQD

1.2M IQD

2.4M IQD

MINIMUM

AVERAGE

MAXIMUM

$370

$920

$1,800

Townhouse monthly rent cost

400,000 IQD

600,000 IQD

1.7M IQD

MINIMUM

AVERAGE

MAXIMUM

$310

$460

$1,300

House monthly rent cost

480,000 IQD

1.2M IQD

2.4M IQD

MINIMUM

AVERAGE

MAXIMUM

$370

$920

$1,800

Villa monthly rent cost

600,000 IQD

1.5M IQD

2.4M IQD

MINIMUM

AVERAGE

MAXIMUM

$460

$1,100

$1,800

The monthly rental cost of a studio apartment in Baghdad ranges between 100,000 IQD and 400,000 IQD, meanwhile the cost of monthly rental of a one-bedroom apartment can be anywhere from 150,000 IQD to 600,000 IQD. Two-bedroom rentals rate ranges between 200,000 IQD and 800,000 IQD per month. The monthly rental for a three-bedroom apartment ranges from 240,000 IQD to 1.1M IQD. The average rent of a townhouse in Baghdad is around 600,000 IQD while house rental costs can be as high as 1.2M IQD per month. Finally, if you want to rent a villa, expect to pay anywhere from 600,000 IQD to 2.4M IQD per month.

Apartment and house prices in Baghdad

Cost of buying a property

Studio apartment price

20M IQD

30M IQD

60M IQD

MINIMUM

AVERAGE

MAXIMUM

$15,000

$23,000

$46,000

1-bedroom apartment price

24M IQD

40M IQD

150M IQD

MINIMUM

AVERAGE

MAXIMUM

$18,000

$31,000

$110,000

2-bedroom apartment price

40M IQD

120M IQD

240M IQD

MINIMUM

AVERAGE

MAXIMUM

$31,000

$92,000

$180,000

3-bedroom apartment price

130M IQD

200M IQD

600M IQD

MINIMUM

AVERAGE

MAXIMUM

$100,000

$150,000

$460,000

Townhouse price

170M IQD

400M IQD

1,500M IQD

MINIMUM

AVERAGE

MAXIMUM

$130,000

$310,000

$1.1M

House price

200M IQD

1,200M IQD

1,700M IQD

MINIMUM

AVERAGE

MAXIMUM

$150,000

$920,000

$1.3M

Villa price

240M IQD

1,300M IQD

2,000M IQD

MINIMUM

AVERAGE

MAXIMUM

$180,000

$1M

$1.5M

The average price of a studio apartment in Baghdad can range from 20M IQD to 60M IQD depending on location. One bedroom cost can be anywhere from 24M IQD to 150M IQD. A villa can cost you 1,300M IQD on average with prices ranging from 240M IQD to 2,000M IQD.

House / apartment prices to income ratio

Property prices in Baghdad can be x95 to x216 multiples of the monthly income depending on the property and the income of the person. On average, property prices are approximately x95 multiples of the average monthly salary in Baghdad.

Rent to income ratio

The average rent-to-income ratio in Baghdad is around 32%. This means that people pay 32% of their income for rent. Those figures can range from 20% to 43% depending on the salary, location, and type of property.

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.

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.

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.

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.

Monthly costs and expenses of energy and basic utilities in Baghdad

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

Utility Bill Cost / Electricity + Water + Gas / Couple

18,000 IQD

61,000 IQD

400,000 IQD

MINIMUM

AVERAGE

MAXIMUM

$14

$47

$300

Internet and cable cost

5,500 IQD

11,000 IQD

15,000 IQD

MINIMUM

AVERAGE

MAXIMUM

$4.2

$8.3

$11

Mobile phone bill and charges

4,400 IQD

7,300 IQD

22,000 IQD

MINIMUM

AVERAGE

MAXIMUM

$3.3

$5.6

$17

The average monthly energy and water consumption of couples is around 61,000 IQD. The cost of internet and WiFi ranges from 5,500 IQD to 15,000 IQD with 11,000 IQD being the average internet bill. Finally, the average monthly mobile charges is around 7,300 IQD but can range between 4,400 IQD and 22,000 IQD depending on consumption. Mobile charges include both calling minutes as well as data packages.

Energy / Utility expense to income ratio

The average utility-to-income ratio in Baghdad is around 7.9%. This means that people pay 7.9% of their income for energy, water, internet, and mobile charges. Those figures can range from 4.5% to 13% depending on salary and location.

Food Prices, Dining Expenses, and Grocery Costs in Baghdad

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

1,100 IQD

2,200 IQD

3,600 IQD

MINIMUM

AVERAGE

MAXIMUM

$0.83

$1.7

$2.8

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 2,200 IQD with meal cost ranging from 1,100 IQD to 3,600 IQD. The typical combo meal consists of a burger, french fries, and a drink.

Restaurant meal for one price

3,800 IQD

5,700 IQD

11,000 IQD

MINIMUM

AVERAGE

MAXIMUM

$2.9

$4.4

$8.8

If you are planning to have a nice meal at a mid-range restaurant, expect to pay anywhere between 3,800 IQD and 11,000 IQD with 5,700 IQD being the average price of a plate for one person at a regular restaurant in Baghdad.

Fine dining meal for one price

7,600 IQD

11,000 IQD

46,000 IQD

MINIMUM

AVERAGE

MAXIMUM

$5.8

$8.8

$35

The price range of a meal at fine-dining restaurant is 7,600 IQD to 46,000 IQD with the average cost being 11,000 IQD for one person. This is what you would expect to pay a top-tier diner in Baghdad.

Beverage prices, cappuccino, latte etc..

910 IQD

1,500 IQD

2,200 IQD

MINIMUM

AVERAGE

MAXIMUM

$0.70

$1.1

$1.7

The average price of a regular beverage like cappuccino or latte at Starbucks, Costa, or similar coffee shops and cafes in Baghdad is around 1,500 IQD. Price ranges between 910 IQD and 2,200 IQD depending on the type of beverage, the size, and optional add-ons.

Grocery and market costs

Large bottle of milk price

730 IQD

880 IQD

1,100 IQD

MINIMUM

AVERAGE

MAXIMUM

$0.56

$0.67

$0.83

The average price of a large bottle of milk in Baghdad is 880 IQD. The maximum what you would pay for milk is 1,100 IQD and the minimum being 730 IQD depending on the brand of milk and other properties.

12 eggs price

550 IQD

730 IQD

1,100 IQD

MINIMUM

AVERAGE

MAXIMUM

$0.42

$0.56

$0.83

A dozen eggs costs around 730 IQD on average with 550 IQD and 1,100 IQD being the lower and upper limits respectively.

Fresh whole chicken price

1,200 IQD

1,600 IQD

2,300 IQD

MINIMUM

AVERAGE

MAXIMUM

$0.95

$1.2

$1.7

The price range of a fresh whole chicken in Baghdad is between 1,200 IQD and 2,300 IQD depending on the size of the chicken and whether it is oraganic or not. The average price is approximatly 1,600 IQD.

Pack of beef price

1,500 IQD

2,200 IQD

4,400 IQD

MINIMUM

AVERAGE

MAXIMUM

$1.1

$1.7

$3.3

The price of a regular pack of beef or meat is around 2,200 IQD. A pack of beef contains around 1Kg or 1lb depending on packing.

Medium bag of rice price

590 IQD

800 IQD

1,100 IQD

MINIMUM

AVERAGE

MAXIMUM

$0.45

$0.61

$0.87

A bag of rice in Baghdad costs around 800 IQD on average with prices rangeing between 590 IQD and 1,100 IQD depending on the brand and quality.

Bag of tomatos price

220 IQD

290 IQD

550 IQD

MINIMUM

AVERAGE

MAXIMUM

$0.17

$0.22

$0.42

A bag of tomatoes costs anywhere from 220 IQD to 550 IQD. A bag of tomatoes denotes 1Kg or 1lb depending on location.

Bag of apples price

390 IQD

510 IQD

840 IQD

MINIMUM

AVERAGE

MAXIMUM

$0.30

$0.39

$0.64

A bag of apples costs 510 IQD on average. A bag of apples denotes 1Kg or 1lb depending on location.

Grocery and food expenditure to income ratio

The average grocery-to-income ratio in Baghdad is around 31%. This means that couples 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 couples