Cost Of Living For a Family in Malawi 2025

Average monthly spending for families in Malawi

We consider a family to be a member of four members, two adults and two children. This is the most common type of family. From the figures below, it should be fairly easy to calculate the average spending for families of different sizes.

How much money does a family need in a month to survive in Malawi?

Families in Malawi spend around 260,000 MWK per month on average. Depending on the lifestyle, a family can survive with a monthly budget as low as 90,000 MWK or as high as 1.7M MWK. Location and income are very important factors and have a huge influence on expenditure and budget.

Family expenditure to income ratio in Malawi

Analysing the how affordable it is for families to live in Malawi

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. Families usually spend a larger chunk of their income than other population groups. A typical and healthy expenditure percentage for a family of four ranges between 70% to 80%.

Families in Malawi spend around 91% of their monthly income. Some families spend as low as 85% of their income while some as high as 100%.

How do families spend their money in Malawi?

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

Housing and accomodation expenditure for families

Families in Malawi typically spend from 20% to 35% of their total monthly expenditure on housing with 25% being the average. The average monthly spend on housing is 83,000 MWK with expenditure ranging from 29,000 MWK to 540,000 MWK. This cost mainly goes for rent but it also includes other accommodation-related expenses.

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

Utility expenditure like electricity, water, and gas in Malawi ranges from 4% to 9% of total expenses with 6% being the average for most families. The average monthly cost of utilities is 13,000 MWK with 4,500 MWK and 84,000 MWK being the upper and lower limits for a family of four.

Transport, fuel, and commute expenditure for families

Fuel consumption and cost of transport depend heavily on whether a family resides near school and work, but roughly speaking a family would expect to spend from 9,000 MWK to 170,000 MWK in a month on commuting with 26,000 MWK being the norm for most families. This means that money spent on transport constitutes about 5% of total spending on average but can go as low as 3% or as high as 7%.

Food, groceries, and basic shopping expenditure for families

The average outlay on groceries and basic houshold items for a typical family in a month in Malawi is 46,000 MWK. The cost of groceries can range between 16,000 MWK to 300,000 MWK. Families spend on average about 21% on food and groceries with upper and lower bounds of 14% and 27% respectively.

Healthcare and medical services expenditure for families

Families in Malawi allocate 7% to 16% 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 11%. The range of medical expenses range from 8,100 MWK to 130,000 MWK with 26,000 MWK being the norm for most families.

Leisure and shopping expenditure for families

This category mostly contains discretionary or non-essential expenses but also some non-discretionary spending like furniture for example. The monthly expenses range from 4,500 MWK to 84,000 MWK with 13,000 MWK being the average. Speaking of percentages, that equates to 1% to 6% of total expenses with an average of 2% for most families.

Education and schooling expenditure for families

Spending on education can vary drastically between different families. On average, education constitutes 13% of the monthly expenditure of families with 6% and 21% being the lower and upper bounds respectively. The average reported education cost is 36,000 MWK per month with 13,000 MWK being the minimum spent amount and 230,000 MWK being the maximum.

What percentage of families in Malawi are able to save money and how much can they save?

Percentage of families that reported their ability to save money

Almost 44% of surveyed families in Malawi said that they can save some money at the end of each month while 56% reported that they have to utilize their whole income to survive.

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

Saving to Income Ratio

Average Monthly Saved Amount

Savings to income distribution levels for families

Interpretation and Analysis

Families that are able to save money can put anywhere from 9% to 28% of their monthly income to their savings, with 16% being the average for most families. The average monthly amount of money that families can put aside is 72,000 MWK with 25,000 MWK and 470,000 MWK being the minimum and maximum respectively.

Saving Challenges in Malawi

Reasons that make it difficult for families to save money

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

Around 5% of the families 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. 13% of the residents said that they are burdened with debt and find it challenging to save money. 12% 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. 12% of families 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. 5% bluntly said that they don't see the purpose of it and prefer to live each day to the fullest. 21% 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. 13% 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 families in Malawi

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 Malawi

Income and cost of living compatibility

We asked families one simple question and recorded their answers.

Is it affordable or economical to live in Malawi?

Around 42% of surveyed families think that living in Malawi is affordable with proper budgeting while 58% reported that it is just too expensive and not affordable even with frugality and thriftness.

Low-cost alternatives in Malawi

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

Plenty of low-cost options53%

Few low-cost options47%

Based on the survey, 53% of the families living in Malawi have no problem finding low-cost alternatives to support a frugal lifestyle while 47% think that thriftness is difficult due to scarcity in discount markets and secondhand outlets.

Emergency Funds For Families

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 families of Malawi whether they have an emergency fund and the answers were as follows.

Yes40%

No60%

Based on the survey, 60% of the families living in Malawi said that they don't have an emergency fund while 40% said that they do.

Financial Literacy in Malawi

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 Leteracy37%

We asked family guardians and parents in Malawi whether they acquired any adequate personal financial training in their lives. Approximately 63% 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 37% 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 families of Malawi have problems or difficulties in managing their expenditures and savings so we asked people one simple question: do you struggle with your personal finances? 59% of the participants reported that they indeed struggle in creating budgets and in organizing their finances while 41% said that they have everything under control.

Struggles with finance59%

Easily manages finances41%

Financial goals of families in Malawi

In an attempt to understand the economic situation in Malawi, 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 families said that their main goal is to establish an emergency fund to cover unexpected expenses while 43% said their number one priority is to pay off high-interest debt or loans and improve credit. 10% 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. 6% of the population would like to build wealth through investments such as stocks, bonds, mutual funds, or real estate. For 6% of people, saving for vacations or upgrading their lifestyle is the number one concern. Approximately 14% of the residents said that saving for healthcare expenses including insurance premiums is their main goal.

Debt, loans, and mortgages in Malawi

Percentage of families who are in debt

According to the survey, 32% of the families in Malawi have some kind of debt, loan, mortgage, or credit card payments while 68% reported that they don't have financial obligations to banks.

Debt-to-income ratio in Malawi

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 a family's monthly income in Malawi goes to debt settlement.

Debt levels

Monthly debt settlement payment as percentage of monthly income

According to our data, 3% of the debtors in Malawi pay 60%+ of their income as debt settlement while 18% of the people pay 50% to 60% of their income for the same, which is quite an alarming financial situation for those individuals. 15% of people in debt dedicate 40% to 50% of their income to loan and mortgage payments while 17% dedicated 30% to 40% of income for same. Things are looking brighter for 10% of individuals as they only pay 20% to 30% of their income for loan and credit card repayment.

Distribution by type of debt in Malawi

8% of debtors in Malawi confirm that real estate mortgages constitutes the main part of their outstanding debt while 30% say that credit card payments are the reason they are in debt. Auto loans were the main type of debt for 15% of people and personal loans rose at 43%. Lastly, student loans are the main source of debt for 4% of debtors in Malawi.

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 Malawi

Besides measuring the loan-to-income ratio, we asked families of Malawi 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 Malawi

Rent Cost in Malawi

Monthly Rent Prices

Studio apartment monthly rent cost

14,000 MWK

21,000 MWK

55,000 MWK

MINIMUM

AVERAGE

MAXIMUM

$8.2

$12

$33

1-bedroom apartment monthly rent cost

21,000 MWK

33,000 MWK

83,000 MWK

MINIMUM

AVERAGE

MAXIMUM

$12

$20

$49

2-bedroom apartment monthly rent cost

28,000 MWK

41,000 MWK

110,000 MWK

MINIMUM

AVERAGE

MAXIMUM

$16

$25

$65

3-bedroom apartment monthly rent cost

33,000 MWK

55,000 MWK

150,000 MWK

MINIMUM

AVERAGE

MAXIMUM

$20

$33

$89

Furnished apartment monthly rent cost

66,000 MWK

170,000 MWK

330,000 MWK

MINIMUM

AVERAGE

MAXIMUM

$39

$98

$200

Townhouse monthly rent cost

55,000 MWK

83,000 MWK

240,000 MWK

MINIMUM

AVERAGE

MAXIMUM

$33

$49

$140

House monthly rent cost

66,000 MWK

170,000 MWK

330,000 MWK

MINIMUM

AVERAGE

MAXIMUM

$39

$98

$200

Villa monthly rent cost

83,000 MWK

210,000 MWK

330,000 MWK

MINIMUM

AVERAGE

MAXIMUM

$49

$120

$200

The monthly rental cost of a studio apartment in Malawi ranges between 14,000 MWK and 55,000 MWK, meanwhile the cost of monthly rental of a one-bedroom apartment can be anywhere from 21,000 MWK to 83,000 MWK. Two-bedroom rentals rate ranges between 28,000 MWK and 110,000 MWK per month. The monthly rental for a three-bedroom apartment ranges from 33,000 MWK to 150,000 MWK. The average rent of a townhouse in Malawi is around 83,000 MWK while house rental costs can be as high as 170,000 MWK per month. Finally, if you want to rent a villa, expect to pay anywhere from 83,000 MWK to 330,000 MWK per month.

Apartment and house prices in Malawi

Cost of buying a property

Studio apartment price

2.8M MWK

4.1M MWK

8.3M MWK

MINIMUM

AVERAGE

MAXIMUM

$1,600

$2,500

$4,900

1-bedroom apartment price

3.3M MWK

5.5M MWK

21M MWK

MINIMUM

AVERAGE

MAXIMUM

$2,000

$3,300

$12,000

2-bedroom apartment price

5.5M MWK

17M MWK

33M MWK

MINIMUM

AVERAGE

MAXIMUM

$3,300

$9,800

$20,000

3-bedroom apartment price

18M MWK

28M MWK

83M MWK

MINIMUM

AVERAGE

MAXIMUM

$11,000

$16,000

$49,000

Townhouse price

24M MWK

55M MWK

210M MWK

MINIMUM

AVERAGE

MAXIMUM

$14,000

$33,000

$120,000

House price

28M MWK

170M MWK

240M MWK

MINIMUM

AVERAGE

MAXIMUM

$16,000

$98,000

$140,000

Villa price

33M MWK

180M MWK

280M MWK

MINIMUM

AVERAGE

MAXIMUM

$20,000

$110,000

$160,000

The average price of a studio apartment in Malawi can range from 2.8M MWK to 8.3M MWK depending on location. One bedroom cost can be anywhere from 3.3M MWK to 21M MWK. A villa can cost you 180M MWK on average with prices ranging from 33M MWK to 280M MWK.

House / apartment prices to income ratio

Property prices in Malawi can be x84 to x191 multiples of the monthly income depending on the property and the income of the person. On average, property prices are approximately x84 multiples of the average monthly salary in Malawi.

Rent to income ratio

The average rent-to-income ratio in Malawi is around 28%. This means that people pay 28% of their income for rent. Those figures can range from 18% to 38% 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 Malawi

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

Utility Bill Cost / Electricity + Water + Gas / Family

4,500 MWK

13,000 MWK

84,000 MWK

MINIMUM

AVERAGE

MAXIMUM

$2.7

$7.7

$50

Internet and cable cost

830 MWK

1,700 MWK

2,200 MWK

MINIMUM

AVERAGE

MAXIMUM

$0.49

$0.98

$1.3

Mobile phone bill and charges

660 MWK

1,100 MWK

3,300 MWK

MINIMUM

AVERAGE

MAXIMUM

$0.39

$0.65

$2

The average monthly energy and water consumption of families is around 13,000 MWK. The cost of internet and WiFi ranges from 830 MWK to 2,200 MWK with 1,700 MWK being the average internet bill. Finally, the average monthly mobile charges is around 1,100 MWK but can range between 660 MWK and 3,300 MWK 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 Malawi is around 7%. This means that people pay 7% of their income for energy, water, internet, and mobile charges. Those figures can range from 4% to 11% depending on salary and location.

Food Prices, Dining Expenses, and Grocery Costs in Malawi

Prices and cost of goods and services in Malawi

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

Fast food combo meal price

170 MWK

330 MWK

550 MWK

MINIMUM

AVERAGE

MAXIMUM

$0.10

$0.20

$0.33

The average price of a regular combo meal at a fast food outlet or chain like McDonald's, Pizzahut, or KFC in Malawi is approximatly 330 MWK with meal cost ranging from 170 MWK to 550 MWK. The typical combo meal consists of a burger, french fries, and a drink.

Restaurant meal for one price

550 MWK

830 MWK

1,700 MWK

MINIMUM

AVERAGE

MAXIMUM

$0.33

$0.49

$0.98

If you are planning to have a nice meal at a mid-range restaurant, expect to pay anywhere between 550 MWK and 1,700 MWK with 830 MWK being the average price of a plate for one person at a regular restaurant in Malawi.

Fine dining meal for one price

1,100 MWK

1,700 MWK

6,600 MWK

MINIMUM

AVERAGE

MAXIMUM

$0.65

$0.98

$3.9

The price range of a meal at fine-dining restaurant is 1,100 MWK to 6,600 MWK with the average cost being 1,700 MWK for one person. This is what you would expect to pay a top-tier diner in Malawi.

Beverage prices, cappuccino, latte etc..

140 MWK

220 MWK

330 MWK

MINIMUM

AVERAGE

MAXIMUM

$0.08

$0.13

$0.20

The average price of a regular beverage like cappuccino or latte at Starbucks, Costa, or similar coffee shops and cafes in Malawi is around 220 MWK. Price ranges between 140 MWK and 330 MWK depending on the type of beverage, the size, and optional add-ons.

Grocery and market costs

Large bottle of milk price

110 MWK

130 MWK

170 MWK

MINIMUM

AVERAGE

MAXIMUM

$0.07

$0.08

$0.10

The average price of a large bottle of milk in Malawi is 130 MWK. The maximum what you would pay for milk is 170 MWK and the minimum being 110 MWK depending on the brand of milk and other properties.

12 eggs price

83 MWK

110 MWK

170 MWK

MINIMUM

AVERAGE

MAXIMUM

$0.05

$0.07

$0.10

A dozen eggs costs around 110 MWK on average with 83 MWK and 170 MWK being the lower and upper limits respectively.

Fresh whole chicken price

190 MWK

240 MWK

340 MWK

MINIMUM

AVERAGE

MAXIMUM

$0.11

$0.14

$0.20

The price range of a fresh whole chicken in Malawi is between 190 MWK and 340 MWK depending on the size of the chicken and whether it is oraganic or not. The average price is approximatly 240 MWK.

Pack of beef price

220 MWK

330 MWK

660 MWK

MINIMUM

AVERAGE

MAXIMUM

$0.13

$0.20

$0.39

The price of a regular pack of beef or meat is around 330 MWK. A pack of beef contains around 1Kg or 1lb depending on packing.

Medium bag of rice price

89 MWK

120 MWK

170 MWK

MINIMUM

AVERAGE

MAXIMUM

$0.05

$0.07

$0.10

A bag of rice in Malawi costs around 120 MWK on average with prices rangeing between 89 MWK and 170 MWK depending on the brand and quality.

Bag of tomatos price

33 MWK

44 MWK

83 MWK

MINIMUM

AVERAGE

MAXIMUM

$0.02

$0.03

$0.05

A bag of tomatoes costs anywhere from 33 MWK to 83 MWK. A bag of tomatoes denotes 1Kg or 1lb depending on location.

Bag of apples price

59 MWK

77 MWK

130 MWK

MINIMUM

AVERAGE

MAXIMUM

$0.04

$0.05

$0.08

A bag of apples costs 77 MWK 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 Malawi is around 27%. This means that families spend 27% of their income on grocery and basic household items. The expenditure can range from 19% to 33% depending on salary and location.

Expenditure on food and grocery for families