Cost Of Living in Funchal 2024

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

Whether you're living in Funchal 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

2,900 EUR

per month
$3,100

220 EUR   $240
$31,000   29,000 EUR

Single

2,000 EUR

per month
$2,100

660 EUR   $710
$14,000   13,000 EUR

Couple

3,300 EUR

per month
$3,600

1,100 EUR   $1,200
$19,000   18,000 EUR

Family

4,400 EUR

per month
$4,800

1,500 EUR   $1,700
$26,000   24,000 EUR

Student

1,400 EUR

per month
$1,500

550 EUR   $600
$2,700   2,500 EUR
The figures displayed here are inclusive of everything: housing, travel, groceries, healthcare, etc.

Singles

The average monthly expense for a single person living in Funchal is 2,000 EUR. Expenses can range from 660 EUR at the minimum level to 13,000 EUR at the highest end.


Couples

The average monthly spending of couples in Funchal is 3,300 EUR. Expenditure can range from 1,100 EUR to 18,000 EUR per month.


Families

The average cost of living for families in Funchal is 4,400 EUR per month. Families spend anywhere from 1,500 EUR to 24,000 EUR.


Students

The average monthly expenditure for students in Funchal is 1,400 EUR. Students spend from 550 EUR to 2,500 EUR per month.


Spending behavior can change drastically from one person to another. It is best to consider the minimum, average, and maximum spending together.

Prices and cost of goods and services in Funchal


Dining, food, and beverages costs


Large bottle of water
0.40 EUR 0.45 EUR 0.52 EUR
MINIMUM AVERAGE MAXIMUM
$0.43 $0.49 $0.56
Fast food combo meal
3.4 EUR 6.7 EUR 11 EUR
MINIMUM AVERAGE MAXIMUM
$3.6 $7.3 $12
Restaurant meal for one
11 EUR 16 EUR 32 EUR
MINIMUM AVERAGE MAXIMUM
$12 $17 $35
Fine dining meal for one
21 EUR 32 EUR 130 EUR
MINIMUM AVERAGE MAXIMUM
$23 $35 $140
Soda or Soft Drink
0.48 EUR 0.56 EUR 0.67 EUR
MINIMUM AVERAGE MAXIMUM
$0.52 $0.61 $0.73
Cappuccino or latte
2.8 EUR 4.5 EUR 6.7 EUR
MINIMUM AVERAGE MAXIMUM
$3 $4.9 $7.3

Grocery and market costs


Milk large bottle
2.2 EUR 2.7 EUR 3.4 EUR
MINIMUM AVERAGE MAXIMUM
$2.4 $2.9 $3.6
Loaf of bread
0.41 EUR 0.46 EUR 0.53 EUR
MINIMUM AVERAGE MAXIMUM
$0.44 $0.50 $0.58
12 eggs
1.7 EUR 2.2 EUR 3.4 EUR
MINIMUM AVERAGE MAXIMUM
$1.8 $2.4 $3.6
Fresh whole chicken
3.8 EUR 4.9 EUR 7 EUR
MINIMUM AVERAGE MAXIMUM
$4.1 $5.4 $7.6
Beef 1 kg or 1 lb
4.5 EUR 6.7 EUR 13 EUR
MINIMUM AVERAGE MAXIMUM
$4.9 $7.3 $15
Rice 1 kg or 1 lb
1.8 EUR 2.5 EUR 3.5 EUR
MINIMUM AVERAGE MAXIMUM
$2 $2.7 $3.8
Tomato 1 kg or 1 lb
0.67 EUR 0.90 EUR 1.7 EUR
MINIMUM AVERAGE MAXIMUM
$0.73 $0.97 $1.8
Apples 1 kg or 1 lb
1.2 EUR 1.6 EUR 2.6 EUR
MINIMUM AVERAGE MAXIMUM
$1.3 $1.7 $2.8

Commute, travel, and transportation costs


20 minutes taxi ride
2.7 EUR 3.2 EUR 6.4 EUR
MINIMUM AVERAGE MAXIMUM
$2.9 $3.5 $7
Average car full tank
17 EUR 22 EUR 45 EUR
MINIMUM AVERAGE MAXIMUM
$18 $24 $49
Average car 1-day rental
15 EUR 20 EUR 31 EUR
MINIMUM AVERAGE MAXIMUM
$17 $22 $33
Average car price
8,400 EUR 17,000 EUR 22,000 EUR
MINIMUM AVERAGE MAXIMUM
$9,100 $18,000 $24,000
Bus ticket one way
0.51 EUR 0.76 EUR 1.5 EUR
MINIMUM AVERAGE MAXIMUM
$0.55 $0.83 $1.7
Car Service
20 EUR 31 EUR 61 EUR
MINIMUM AVERAGE MAXIMUM
$22 $33 $66

Utility cost (monthly)


Utility Bill - Individual
39 EUR 120 EUR 790 EUR
MINIMUM AVERAGE MAXIMUM
$43 $130 $860
Utility Bill - Couple
55 EUR 160 EUR 880 EUR
MINIMUM AVERAGE MAXIMUM
$59 $180 $950
Utility Bill - Family
46 EUR 130 EUR 720 EUR
MINIMUM AVERAGE MAXIMUM
$50 $140 $780
Internet and cable
17 EUR 34 EUR 45 EUR
MINIMUM AVERAGE MAXIMUM
$18 $36 $49
Mobile phone charges
13 EUR 22 EUR 67 EUR
MINIMUM AVERAGE MAXIMUM
$15 $24 $73

Leisure and activities costs


Movie ticket
8.4 EUR 11 EUR 17 EUR
MINIMUM AVERAGE MAXIMUM
$9.1 $12 $18
One month gym membership
24 EUR 31 EUR 61 EUR
MINIMUM AVERAGE MAXIMUM
$27 $33 $66

Cloths and accessories costs


Pair of jeans or pants
18 EUR 25 EUR 38 EUR
MINIMUM AVERAGE MAXIMUM
$19 $28 $41
Woman dress
17 EUR 23 EUR 76 EUR
MINIMUM AVERAGE MAXIMUM
$18 $25 $83
Woman shoes
16 EUR 22 EUR 51 EUR
MINIMUM AVERAGE MAXIMUM
$17 $24 $55
Men's shoes
14 EUR 17 EUR 34 EUR
MINIMUM AVERAGE MAXIMUM
$15 $18 $37
Men suit
15 EUR 19 EUR 100 EUR
MINIMUM AVERAGE MAXIMUM
$17 $21 $110
Regular t-shirt
7.6 EUR 10 EUR 31 EUR
MINIMUM AVERAGE MAXIMUM
$8.3 $11 $33

Housing costs / monthly rent


Studio apartment
250 EUR 380 EUR 1,000 EUR
MINIMUM AVERAGE MAXIMUM
$280 $410 $1,100
1-bedroom apartment
380 EUR 610 EUR 1,500 EUR
MINIMUM AVERAGE MAXIMUM
$410 $660 $1,700
2-bedroom apartment
510 EUR 760 EUR 2,000 EUR
MINIMUM AVERAGE MAXIMUM
$550 $830 $2,200

Housing costs / Buying


Studio apartment
51,000 EUR 76,000 EUR 150,000 EUR
MINIMUM AVERAGE MAXIMUM
$55,000 $83,000 $170,000
1-bedroom apartment
61,000 EUR 100,000 EUR 380,000 EUR
MINIMUM AVERAGE MAXIMUM
$66,000 $110,000 $410,000
2-bedroom apartment
100,000 EUR 310,000 EUR 610,000 EUR
MINIMUM AVERAGE MAXIMUM
$110,000 $330,000 $660,000

Furniture Costs


King Size Bed
340 EUR 420 EUR 560 EUR
MINIMUM AVERAGE MAXIMUM
$360 $460 $610
Double Bed
220 EUR 340 EUR 420 EUR
MINIMUM AVERAGE MAXIMUM
$240 $360 $460
Single Bed
200 EUR 260 EUR 340 EUR
MINIMUM AVERAGE MAXIMUM
$210 $280 $360
Living Room
370 EUR 480 EUR 1,700 EUR
MINIMUM AVERAGE MAXIMUM
$400 $520 $1,800
Dining Table
170 EUR 220 EUR 420 EUR
MINIMUM AVERAGE MAXIMUM
$180 $240 $460
Sofa or Couch
220 EUR 310 EUR 670 EUR
MINIMUM AVERAGE MAXIMUM
$240 $330 $730

Electronics and House Appliance Costs


TV Set
220 EUR 340 EUR 670 EUR
MINIMUM AVERAGE MAXIMUM
$240 $360 $730
Fridge or Freezer
200 EUR 310 EUR 420 EUR
MINIMUM AVERAGE MAXIMUM
$210 $330 $460
Washing Machine
260 EUR 370 EUR 670 EUR
MINIMUM AVERAGE MAXIMUM
$280 $400 $730
Stove or Cooker
240 EUR 310 EUR 420 EUR
MINIMUM AVERAGE MAXIMUM
$260 $330 $460
Mobile Phone
280 EUR 340 EUR 480 EUR
MINIMUM AVERAGE MAXIMUM
$300 $360 $520
Laptop or Computer
310 EUR 370 EUR 670 EUR
MINIMUM AVERAGE MAXIMUM
$330 $400 $730

Expenditure to Income Ratio in Funchal

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.


Spending to Income Ratio

75%

68% to 83%

( expenditure / income ) x 100


Expense to income distribution levels

Spending To Income Ratio% People
< 50%5%
50% - 60%11%
60% - 70%17%
70% - 80%26%
80% - 90%17%
90% - 100%10%
100% - 110%5%
110% - 120%3%
120% - 130%2%
130% - 140%2%
> 140%1%

Interpretation and Analysis

The average spending-to-salary ratio in Funchal is 75% This means that on average, people spend around 75% of their income for living. According to the distribution table, 17% 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
68%
Spending-Income-Ratio
61%
75%

Couple
71%
Spending-Income-Ratio
65%
79%

Family
79%
Spending-Income-Ratio
71%
87%

How do people spend their money in Funchal?

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 Expenditure26%

26% of total expenses on average (15% to 34%)

LOW$71   66 EUR
AVERAGE$930   860 EUR
HIGH$9,300   8,600 EUR
Per Month

People living in Funchal typically spend from 15% to 34% of their total monthly expenditure on housing with 26% being the average. The average spend on housing is 860 EUR with expenditure ranging from 66 EUR to 8,600 EUR. 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, Water7%

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

LOW$12   11 EUR
AVERAGE$150   140 EUR
HIGH$1,500   1,400 EUR
Per Month

Utility expenditure like electricity, water, and gas in Funchal ranges from 4% to 11% of total expenses with 7% being the average. The average monthly cost of utilities is 140 EUR with 11 EUR and 1,400 EUR being the upper and lower limits.

Transport, Fuel, Commute8%

8% of total expenses on average (4% to 12%)

LOW$24   22 EUR
AVERAGE$310   290 EUR
HIGH$3,100   2,900 EUR
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 22 EUR to 2,900 EUR on commuting with 290 EUR being the norm for most people in one month. This means that money spent on transport constitutes about 8% of total spending on average but can go as low as 4% or as high as 12%.

Food and Groceries Cost27%

27% of total expenses on average (19% to 33%)

LOW$59   55 EUR
AVERAGE$770   710 EUR
HIGH$7,700   7,100 EUR
Per Month

The average outlay on groceries in a month in Funchal is 710 EUR. The cost of groceries can range between 55 EUR to 7,100 EUR. People spend on average about 27% on food and groceries with upper and lower bounds of 19% and 33% respectively.

Healthcare and Medical Services9%

9% of total expenses on average (4% to 12%)

LOW$17   15 EUR
AVERAGE$220   200 EUR
HIGH$2,200   2,000 EUR
Per Month

People in Funchal allocate 4% to 12% of their total monthly expenditure to healthcare including health insurance and out-of-pocket medical expenses. The average spending is around 9%. The range of medical expenses range from 15 EUR to 2,000 EUR with 200 EUR being the norm.

Leisure and Shopping5%

5% of total expenses on average (3% to 9%)

LOW$9.5   8.8 EUR
AVERAGE$120   110 EUR
HIGH$1,200   1,100 EUR
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 8.8 EUR to 1,100 EUR with 110 EUR being the average. Speaking of percentages, that equates to 3% to 9% of total expenses with an average of 5% for most residents.

Education and Schooling6%

6% of total expenses on average (4% to 12%)

LOW$14   13 EUR
AVERAGE$190   170 EUR
HIGH$1,900   1,700 EUR
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 6% of the monthly expenditure with 4% and 12% being the lower and upper bounds respectively. The average reported education cost is 170 EUR per month with 13 EUR being the minimum spent amount and 1,700 EUR being the maximum.

Other Expenses13%

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

LOW$31   29 EUR
AVERAGE$400   370 EUR
HIGH$4,000   3,700 EUR
Per Month

How much money can you save in Funchal 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 Funchal manage to save money from their income every month?


Saving Money
57%
Not Saving
43%

Almost 57% of the surveyed people in Funchal said that they can save some money at the end of each month while 43% said that aren't saving anything.


Percentage of people saving money by population group in Funchal

GroupSaversNon Savers
Singles64%36%
Couples59%41%
Families55%45%

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.


Saving to Income Ratio

10% 17% of income 28%
MINIMUM AVERAGE MAXIMUM

Average Monthly Saved Amount

86 EUR
$93
1,100 EUR
$1,200
11,000 EUR
$12,000
MINIMUM AVERAGE MAXIMUM

For most people, 10% to 28% of their monthly income is what they can allocate to their savings, with 17% being the average. The amount of money that people can save is approximately 1,100 EUR on average with savings ranging from 86 EUR to 11,000 EUR.

64% of surveyed singles reported some of their income going to savings while 59% of couples said the same. 55% of families confirmed their ability to save money.


How much money do people actually save in Funchal?

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

13% 21% of income 30%
MINIMUM AVERAGE MAXIMUM

Average Monthly Saved Amount

260 EUR
$280
780 EUR
$840
5,200 EUR
$5,600
MINIMUM AVERAGE MAXIMUM

Savings to income distribution levels for singles

Saving To Income Ratio% Singles
0% - 10%30%
10% - 20%23%
20% - 30%16%
30% - 40%15%
40% - 50%12%
> 50%4%

Interpretation and Analysis

Singles who can afford to save reported that they allocate from 13% to 30% of their monthly income to savings, with 21% being the average for most singles. The average amount of money that singles are able to save is 780 EUR with 260 EUR and 5,200 EUR being the minimum and maximum respectively.


Couples

Saving to Income Ratio

11% 19% of income 29%
MINIMUM AVERAGE MAXIMUM

Average Monthly Saved Amount

430 EUR
$470
1,300 EUR
$1,400
6,900 EUR
$7,500
MINIMUM AVERAGE MAXIMUM

Savings to income distribution levels for couples

Saving To Income Ratio% Couples
0% - 10%34%
10% - 20%25%
20% - 30%19%
30% - 40%10%
40% - 50%9%
> 50%3%

Interpretation and Analysis

Couples who confirmed their ability to save reported saving equivalent to 11% to 29% of their monthly income, with 19% being the average for most couples. The average amount of money that couples can save is 1,300 EUR with 430 EUR and 6,900 EUR being the minimum and maximum respectively.


Families

Saving to Income Ratio

9.1% 16% of income 26%
MINIMUM AVERAGE MAXIMUM

Average Monthly Saved Amount

600 EUR
$650
1,700 EUR
$1,900
9,500 EUR
$10,000
MINIMUM AVERAGE MAXIMUM

Savings to income distribution levels for families

Saving To Income Ratio% Families
0% - 10%37%
10% - 20%28%
20% - 30%20%
30% - 40%7%
40% - 50%6%
> 50%2%

Interpretation and Analysis

Families in Funchal can save anywhere between 9.1% to 26% of their monthly income, with 16% being the average for most families. The average amount of money that families can put aside is 1,700 EUR with 600 EUR and 9,500 EUR being the minimum and maximum respectively.

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.

Affordable living in Funchal

Income and cost of living compatibility

We asked residents one simple question and recorded their answers.

Is it affordable or economical to live in Funchal?


Yes
65%
No
35%

Around 65% of surveyed residents think that living in Funchal is affordable with proper budgeting while 35% reported that it is just too expensive and not affordable even with frugality and thriftness.

Low-cost alternatives in Funchal

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 options53%

Few low-cost options47%


Based on the survey, 53% of the people living in Funchal 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

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

Yes62%

No39%


Based on the survey, 39% of the people living in Funchal said that they don't have an emergency fund while 62% said that they do.

Financial Literacy in Portugal

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 Leteracy67%


We asked residents of Portugal whether they acquired any adequate personal financial training in their lives. Approximately 33% 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 67% 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 Portugal have problems or difficulties in managing their expenditures and savings so asked the people one simple question: do you struggle with your personal finances? 34% of the participants reported that they indeed struggle in creating budgets and in organizing their finances while 66% said that they have everything under control.

Struggles with finance34%

Easily manages finances66%

Financial goals of people in Funchal

In an attempt to understand the economic situation in Funchal, 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 Fund7%
Debt Reduction36%
Retirement Savings8%
Education Funding8%
Homeownership17%
Investing8%
Travel or Lifestyle9%
Healthcare Expenses10%
Financial Independence7%

Around 7% of those who participated in the survey said that their main goal is to establish an emergency fund to cover unexpected expenses while 36% said their number one priority is to pay off high-interest debt or loans and improve credit. 8% of surveyed people confirmed that saving for retirement to ensure a comfortable lifestyle in the final years is their main target. Around 8% reported that their priority is saving for the tuition fees and education costs of their children while 17% choose to buy a home or pay off existing mortgage before other things. 8% of the population would like to build wealth through investments such as stocks, bonds, mutual funds, or real estate. For 9% of people, saving for vacations or upgrading their lifestyle is the number one concern. Approximately 10% of the residents said that saving for healthcare expenses including insurance premiums is their main goal.

Saving Challenges in Funchal

Reasons that make it difficult for people to save money

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


Reason% People
Low Income6%
High Expenses9%
Debt and Loans17%
Lack of Budgeting Skills11%
Impulsive Spending10%
Financial Emergencies6%
Living the moment6%
Will do it later18%
Inflation11%
Social Pressure3%
Market Instability3%

Around 6% of the people said that their salary is too low to accommodate a portion for savings while 9% said that the high cost of living leaves little room for savings. 17% 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. 10% blamed impulsive spending as the reason for saving inability. Around 6% 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. 18% 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. 11% 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 societal expectations makes them overspend. Lastly, 3% blamed market instability and price fluctuations.

Typical saving choices for people in Funchal

Where do people choose to put their savings?


Saving Type% People
Emergency Funds11%
Gold11%
Savings Accounts17%
Retirement Accounts11%
Cash Savings17%
Real Estate10%
Investment6%
Stocks5%
Bonds6%
Mutual Funds3%
Certificates of Deposit3%

Retirement, pension plans, and life after work in Funchal

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

Retirement age

The retirement age for most employees in Portugal 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 Funchal:
AgeAmount
257,900 EUR
3016,000 EUR
3528,000 EUR
4040,000 EUR
4560,000 EUR
5083,000 EUR
5599,000 EUR
60120,000 EUR
65150,000 EUR

Retirement Income Distribution

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

Source% People
Pensions13%
Savings22%
Investments13%
Social Security8%
Annuities8%
Part-time Job11%
Real Estate17%
Dividends and Interest8%

Retirement Monthly Expenses in Funchal

470 EUR
$510
1,400 EUR
$1,500
9,500 EUR
$10,000
MINIMUM AVERAGE MAXIMUM

Debt, loans, and mortgages in Funchal


Percentage of people who are in debt


In Debt
26%
Debt Free
74%

According to the survey, 26% of the people in Funchal have some kind of debt, loan, mortgage, or credit card payments while 74% reported that they don't have financial obligations to banks.


Debt-to-income ratio in Funchal

Debt to income ratio

25%

17% to 34%

( 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 25% of the people's monthly income in Funchal goes to debt settlement.


Debt levels

Monthly debt settlement payment as percentage of monthly income

Debt-to-income ratio% People
> 60%3%
50% - 60%14%
40% - 50%12%
30% - 40%14%
20% - 30%14%
10% - 20%16%
0% - 10%27%

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


Distribution by type of debt in Funchal

Debt% People
Real Estate Mortgage12%
Auto Loan20%
Student Loan3%
Credit Card26%
Personal Loan39%

12% of debtors in Funchal confirm that real estate mortgages constitutes the main part of their outstanding debt while 26% say that credit card payments are the reason they are in debt. Auto loans were the main type of debt for 20% of people and personal loans rose at 39%. Lastly, student loans are the main source of debt for 3% of debtors in Funchal.


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 Funchal

Besides measuring the loan-to-income ratio, we asked residents of Funchal 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
Never54%
Once a year23%
Twice a year12%
Three times a year8%
Four times a year4%

Housing costs, accommodation, and housing affordability in Funchal

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


Rent Cost in Funchal

Monthly Rent Prices

Studio apartment
250 EUR 380 EUR 1,000 EUR
MINIMUM AVERAGE MAXIMUM
$280 $410 $1,100
1-bedroom apartment
380 EUR 610 EUR 1,500 EUR
MINIMUM AVERAGE MAXIMUM
$410 $660 $1,700
2-bedroom apartment
510 EUR 760 EUR 2,000 EUR
MINIMUM AVERAGE MAXIMUM
$550 $830 $2,200
3-bedroom apartment
610 EUR 1,000 EUR 2,800 EUR
MINIMUM AVERAGE MAXIMUM
$660 $1,100 $3,000
Furnished apartment
1,200 EUR 3,100 EUR 6,100 EUR
MINIMUM AVERAGE MAXIMUM
$1,300 $3,300 $6,600
Townhouse
1,000 EUR 1,500 EUR 4,400 EUR
MINIMUM AVERAGE MAXIMUM
$1,100 $1,700 $4,700
House
1,200 EUR 3,100 EUR 6,100 EUR
MINIMUM AVERAGE MAXIMUM
$1,300 $3,300 $6,600
Villa
1,500 EUR 3,800 EUR 6,100 EUR
MINIMUM AVERAGE MAXIMUM
$1,700 $4,100 $6,600

The monthly rental cost of a studio apartment in Funchal ranges between 250 EUR and 1,000 EUR, meanwhile the cost of monthly rental of a one-bedroom apartment can be anywhere from 380 EUR to 1,500 EUR. Two-bedroom rentals rate ranges between 510 EUR and 2,000 EUR per month. The monthly rental for a three-bedroom apartment ranges from 610 EUR to 2,800 EUR. The average rent of a townhouse in Funchal is around 1,500 EUR while house rental costs can be as high as 3,100 EUR per month. Finally, if you want to rent a villa, expect to pay anywhere from 1,500 EUR to 6,100 EUR per month.



Apartment and house prices in Funchal

Cost of buying a property

Studio apartment
51,000 EUR 76,000 EUR 150,000 EUR
MINIMUM AVERAGE MAXIMUM
$55,000 $83,000 $170,000
1-bedroom apartment
61,000 EUR 100,000 EUR 380,000 EUR
MINIMUM AVERAGE MAXIMUM
$66,000 $110,000 $410,000
2-bedroom apartment
100,000 EUR 310,000 EUR 610,000 EUR
MINIMUM AVERAGE MAXIMUM
$110,000 $330,000 $660,000
3-bedroom apartment
340,000 EUR 510,000 EUR 1.5M EUR
MINIMUM AVERAGE MAXIMUM
$370,000 $550,000 $1.7M
Townhouse
440,000 EUR 1M EUR 3.8M EUR
MINIMUM AVERAGE MAXIMUM
$470,000 $1.1M $4.1M
House
510,000 EUR 3.1M EUR 4.4M EUR
MINIMUM AVERAGE MAXIMUM
$550,000 $3.3M $4.7M
Villa
610,000 EUR 3.4M EUR 5.1M EUR
MINIMUM AVERAGE MAXIMUM
$660,000 $3.7M $5.5M

The average price of a studio apartment in Funchal can range from 51,000 EUR to 150,000 EUR depending on location. One bedroom cost can be anywhere from 61,000 EUR to 380,000 EUR. A villa can cost you 3.4M EUR on average with prices ranging from 610,000 EUR to 5.1M EUR.


If you're leasing or purchasing, housing costs in Funchal 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


37 x110 monthly income 193
MINIMUM AVERAGE MAXIMUM

Property prices in Funchal can be x110 to x193 multiples of the monthly income depending on the property and the income of the person. On average, property prices are approximately x110 multiples of the average monthly salary in Funchal.



Rent to income ratio


Rent to income ratio

( monthly rental / monthly income ) x 100


20% 29% of income 38%
MINIMUM AVERAGE MAXIMUM

The average rent-to-income ratio in Funchal is around 29%. This means that people pay 29% of their income for rent. Those figures can range from 20% to 38% 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
27%

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
2.2%
AVERAGE
3.2%
TO
4.2%

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.


4.4 EUR 57 EUR 570 EUR
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.


Single
Spending habits, consumption analysis, and expenditure patterns for a single person living in Funchal

Housing32%

32% of total expenses on average (20% to 44%)

LOW$260   240 EUR
AVERAGE$770   710 EUR
HIGH$5,100   4,700 EUR
Per Month

Utilities, Electricity, Water8%

8% of total expenses on average (4% to 13%)

LOW$43   39 EUR
AVERAGE$130   120 EUR
HIGH$860   790 EUR
Per Month

Transport, Fuel6%

6% of total expenses on average (4% to 12%)

LOW$57   53 EUR
AVERAGE$170   160 EUR
HIGH$1,100   1,100 EUR
Per Month

Food and Groceries18%

18% of total expenses on average (12% to 23%)

LOW$110   110 EUR
AVERAGE$340   320 EUR
HIGH$2,300   2,100 EUR
Per Month

Healthcare11%

11% of total expenses on average (5% to 15%)

LOW$64   59 EUR
AVERAGE$190   180 EUR
HIGH$1,300   1,200 EUR
Per Month

Leisure, Shopping3%

3% of total expenses on average (3% to 6%)

LOW$36   33 EUR
AVERAGE$110   99 EUR
HIGH$710   660 EUR
Per Month

Education2%

2% of total expenses on average (1% to 4%)

LOW$14   13 EUR
AVERAGE$43   39 EUR
HIGH$290   260 EUR
Per Month

Other Expenses21%

21% of total expenses on average (13% to 25%)

LOW$130   120 EUR
AVERAGE$390   360 EUR
HIGH$2,600   2,400 EUR
Per Month


Couple
Average monthly living expenditure breaks and spending patterns for couples in Funchal

Housing29%

29% of total expenses on average (22% to 39%)

LOW$390   360 EUR
AVERAGE$1,200   1,100 EUR
HIGH$6,300   5,800 EUR
Per Month

Utilities, Electricity, Water7%

7% of total expenses on average (5% to 11%)

LOW$59   55 EUR
AVERAGE$180   160 EUR
HIGH$950   880 EUR
Per Month

Transport, Fuel10%

10% of total expenses on average (4% to 15%)

LOW$140   130 EUR
AVERAGE$430   390 EUR
HIGH$2,300   2,100 EUR
Per Month

Food and Groceries16%

16% of total expenses on average (11% to 21%)

LOW$170   150 EUR
AVERAGE$500   460 EUR
HIGH$2,700   2,500 EUR
Per Month

Healthcare13%

13% of total expenses on average (7% to 17%)

LOW$130   120 EUR
AVERAGE$390   360 EUR
HIGH$2,100   1,900 EUR
Per Month

Leisure, Shopping4%

4% of total expenses on average (2% to 7%)

LOW$71   66 EUR
AVERAGE$210   200 EUR
HIGH$1,100   1,100 EUR
Per Month

Education2%

2% of total expenses on average (1% to 4%)

LOW$24   22 EUR
AVERAGE$71   66 EUR
HIGH$380   350 EUR
Per Month

Other Expenses20%

20% of total expenses on average (14% to 26%)

LOW$200   190 EUR
AVERAGE$610   560 EUR
HIGH$3,200   3,000 EUR
Per Month


Family
Average monthly expenses and break out of spending for families living in Funchal

Housing28%

28% of total expenses on average (23% to 38%)

LOW$530   490 EUR
AVERAGE$1,500   1,400 EUR
HIGH$8,400   7,700 EUR
Per Month

Transport, Fuel6%

6% of total expenses on average (4% to 8%)

LOW$130   120 EUR
AVERAGE$380   350 EUR
HIGH$2,100   1,900 EUR
Per Month

Food and Groceries20%

20% of total expenses on average (13% to 26%)

LOW$300   280 EUR
AVERAGE$860   790 EUR
HIGH$4,700   4,300 EUR
Per Month

Healthcare10%

10% of total expenses on average (6% to 15%)

LOW$130   120 EUR
AVERAGE$380   350 EUR
HIGH$2,100   1,900 EUR
Per Month

Leisure, Shopping3%

3% of total expenses on average (2% to 7%)

LOW$83   77 EUR
AVERAGE$240   220 EUR
HIGH$1,300   1,200 EUR
Per Month

Education14%

14% of total expenses on average (7% to 22%)

LOW$230   210 EUR
AVERAGE$670   610 EUR
HIGH$3,700   3,400 EUR
Per Month

Other Expenses15%

15% of total expenses on average (8% to 20%)

LOW$200   180 EUR
AVERAGE$570   530 EUR
HIGH$3,100   2,900 EUR
Per Month


Student
Cost of living and expenses break down for students living in Funchal

Housing20%

20% of total expenses on average (15% to 26%)

LOW$140   130 EUR
AVERAGE$360   330 EUR
HIGH$640   590 EUR
Per Month

Utilities, Electricity, Water6%

6% of total expenses on average (4% to 10%)

LOW$24   22 EUR
AVERAGE$60   55 EUR
HIGH$110   99 EUR
Per Month

Transport, Fuel5%

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

LOW$42   38 EUR
AVERAGE$100   96 EUR
HIGH$190   170 EUR
Per Month

Food and Groceries22%

22% of total expenses on average (16% to 26%)

LOW$120   110 EUR
AVERAGE$300   270 EUR
HIGH$540   490 EUR
Per Month

Healthcare8%

8% of total expenses on average (5% to 11%)

LOW$36   33 EUR
AVERAGE$89   82 EUR
HIGH$160   150 EUR
Per Month

Leisure, Shopping3%

3% of total expenses on average (2% to 7%)

LOW$30   27 EUR
AVERAGE$75   69 EUR
HIGH$130   120 EUR
Per Month

Education19%

19% of total expenses on average (12% to 24%)

LOW$110   100 EUR
AVERAGE$280   260 EUR
HIGH$510   470 EUR
Per Month

Other Expenses18%

18% of total expenses on average (12% to 24%)

LOW$89   82 EUR
AVERAGE$220   210 EUR
HIGH$400   370 EUR
Per Month
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