Cost Of Living in Malawi 2025

cost of living chart - average monthly expenditure in Malawi

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

Whether you're living in Malawi 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: MWK
13,000 170,000 1.7M
MINIMUM AVERAGE MAXIMUM
$7.7 $100 $1,000

Monthly Expenditure ▶ Single

Currency: MWK
16,000 120,000 770,000
MINIMUM AVERAGE MAXIMUM
$9.6 $69 $460

Monthly Expenditure ▶ Couple

Currency: MWK
65,000 190,000 1M
MINIMUM AVERAGE MAXIMUM
$38 $120 $610

Monthly Expenditure ▶ Family

Currency: MWK
90,000 260,000 1.7M
MINIMUM AVERAGE MAXIMUM
$54 $150 $1,000

Monthly Expenditure ▶ Student

Currency: MWK
13,000 86,000 580,000
MINIMUM AVERAGE MAXIMUM
$7.7 $51 $340
The figures displayed here are inclusive of everything: housing, travel, groceries, healthcare, etc.

Singles

The average monthly expense for a single person living in Malawi is 120,000 MWK. Expenses can range from 16,000 MWK at the minimum level to 770,000 MWK at the highest end.


Couples

The average monthly spending of couples in Malawi is 190,000 MWK. Expenditure can range from 65,000 MWK to 1M MWK per month.


Families

The average cost of living for families in Malawi is 260,000 MWK per month. Families spend anywhere from 90,000 MWK to 1.7M MWK.


Students

The average monthly expenditure for students in Malawi is 86,000 MWK. Students spend from 13,000 MWK to 580,000 MWK 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 Malawi


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

Dining, food, and beverages costs


Fast food combo meal

170 MWK 330 MWK 550 MWK
MINIMUM AVERAGE MAXIMUM
$0.10 $0.20 $0.33

Restaurant meal for one

550 MWK 830 MWK 1,700 MWK
MINIMUM AVERAGE MAXIMUM
$0.33 $0.49 $0.98

Fine dining meal for one

1,100 MWK 1,700 MWK 6,600 MWK
MINIMUM AVERAGE MAXIMUM
$0.65 $0.98 $3.9

Cappuccino or latte

140 MWK 220 MWK 330 MWK
MINIMUM AVERAGE MAXIMUM
$0.08 $0.13 $0.20

Grocery and market costs


Milk large bottle

110 MWK 130 MWK 170 MWK
MINIMUM AVERAGE MAXIMUM
$0.07 $0.08 $0.10

12 eggs

83 MWK 110 MWK 170 MWK
MINIMUM AVERAGE MAXIMUM
$0.05 $0.07 $0.10

Fresh whole chicken

190 MWK 240 MWK 340 MWK
MINIMUM AVERAGE MAXIMUM
$0.11 $0.14 $0.20

Pack of beef

220 MWK 330 MWK 660 MWK
MINIMUM AVERAGE MAXIMUM
$0.13 $0.20 $0.39

Medium bag of rice

89 MWK 120 MWK 170 MWK
MINIMUM AVERAGE MAXIMUM
$0.05 $0.07 $0.10

Bag of tomatos

33 MWK 44 MWK 83 MWK
MINIMUM AVERAGE MAXIMUM
$0.02 $0.03 $0.05

Bag of apples

59 MWK 77 MWK 130 MWK
MINIMUM AVERAGE MAXIMUM
$0.04 $0.05 $0.08
Chart showing the prices and cost of commute, travel, and transportation in Malawi

Commute, travel, and transportation costs


20 minutes taxi ride

140 MWK 170 MWK 330 MWK
MINIMUM AVERAGE MAXIMUM
$0.08 $0.10 $0.20

Average car full tank

830 MWK 1,100 MWK 2,200 MWK
MINIMUM AVERAGE MAXIMUM
$0.49 $0.65 $1.3

Average car 1-day rental

830 MWK 1,100 MWK 1,700 MWK
MINIMUM AVERAGE MAXIMUM
$0.49 $0.65 $0.98

Average car price

410,000 MWK 830,000 MWK 1.1M MWK
MINIMUM AVERAGE MAXIMUM
$250 $490 $650

Bus ticket one way

28 MWK 41 MWK 83 MWK
MINIMUM AVERAGE MAXIMUM
$0.02 $0.02 $0.05

Car Service

1,100 MWK 1,700 MWK 3,300 MWK
MINIMUM AVERAGE MAXIMUM
$0.65 $0.98 $2
Chart showing the prices and cost of utility, energy, water, and gas for a family in Malawi

Utility cost (monthly)


Utility Bill - Individual

970 MWK 7,000 MWK 46,000 MWK
MINIMUM AVERAGE MAXIMUM
$0.58 $4.1 $28

Utility Bill - Couple

2,600 MWK 8,700 MWK 57,000 MWK
MINIMUM AVERAGE MAXIMUM
$1.5 $5.2 $34

Utility Bill - Family

4,500 MWK 13,000 MWK 84,000 MWK
MINIMUM AVERAGE MAXIMUM
$2.7 $7.7 $50

Internet and cable

830 MWK 1,700 MWK 2,200 MWK
MINIMUM AVERAGE MAXIMUM
$0.49 $0.98 $1.3

Mobile phone charges

660 MWK 1,100 MWK 3,300 MWK
MINIMUM AVERAGE MAXIMUM
$0.39 $0.65 $2

Leisure and activities costs


Movie ticket

410 MWK 550 MWK 830 MWK
MINIMUM AVERAGE MAXIMUM
$0.25 $0.33 $0.49

One month gym membership

1,300 MWK 1,700 MWK 3,300 MWK
MINIMUM AVERAGE MAXIMUM
$0.79 $0.98 $2
Chart showing the prices and cost of clothing and accessories in Malawi

Cloths and accessories costs


Pair of jeans or pants

970 MWK 1,400 MWK 2,100 MWK
MINIMUM AVERAGE MAXIMUM
$0.58 $0.82 $1.2

Woman dress

920 MWK 1,300 MWK 4,100 MWK
MINIMUM AVERAGE MAXIMUM
$0.55 $0.76 $2.5

Woman shoes

870 MWK 1,200 MWK 2,800 MWK
MINIMUM AVERAGE MAXIMUM
$0.52 $0.70 $1.6

Men's shoes

750 MWK 920 MWK 1,800 MWK
MINIMUM AVERAGE MAXIMUM
$0.45 $0.55 $1.1

Men suit

830 MWK 1,000 MWK 5,500 MWK
MINIMUM AVERAGE MAXIMUM
$0.49 $0.61 $3.3

Regular t-shirt

410 MWK 550 MWK 1,700 MWK
MINIMUM AVERAGE MAXIMUM
$0.25 $0.33 $0.98
Chart showing the prices and cost of housing, accommodation, and rent in Malawi

Housing costs / monthly rent


Studio apartment

14,000 MWK 21,000 MWK 55,000 MWK
MINIMUM AVERAGE MAXIMUM
$8.2 $12 $33

1-bedroom apartment

21,000 MWK 33,000 MWK 83,000 MWK
MINIMUM AVERAGE MAXIMUM
$12 $20 $49

2-bedroom apartment

28,000 MWK 41,000 MWK 110,000 MWK
MINIMUM AVERAGE MAXIMUM
$16 $25 $65

Housing costs / Buying


Studio apartment

2.8M MWK 4.1M MWK 8.3M MWK
MINIMUM AVERAGE MAXIMUM
$1,600 $2,500 $4,900

1-bedroom apartment

3.3M MWK 5.5M MWK 21M MWK
MINIMUM AVERAGE MAXIMUM
$2,000 $3,300 $12,000

2-bedroom apartment

5.5M MWK 17M MWK 33M MWK
MINIMUM AVERAGE MAXIMUM
$3,300 $9,800 $20,000
Chart showing the prices and cost of furniture in Malawi

Furniture Costs


King Size Bed

17,000 MWK 21,000 MWK 28,000 MWK
MINIMUM AVERAGE MAXIMUM
$9.8 $12 $16

Double Bed

11,000 MWK 17,000 MWK 21,000 MWK
MINIMUM AVERAGE MAXIMUM
$6.5 $9.8 $12

Single Bed

9,700 MWK 13,000 MWK 17,000 MWK
MINIMUM AVERAGE MAXIMUM
$5.8 $7.6 $9.8

Living Room

18,000 MWK 24,000 MWK 83,000 MWK
MINIMUM AVERAGE MAXIMUM
$11 $14 $49

Dining Table

8,300 MWK 11,000 MWK 21,000 MWK
MINIMUM AVERAGE MAXIMUM
$4.9 $6.5 $12

Sofa or Couch

11,000 MWK 15,000 MWK 33,000 MWK
MINIMUM AVERAGE MAXIMUM
$6.5 $8.9 $20
Chart showing the prices and cost of electronic devices and appliances in Malawi

Electronics and House Appliance Costs


TV Set

11,000 MWK 17,000 MWK 33,000 MWK
MINIMUM AVERAGE MAXIMUM
$6.5 $9.8 $20

Fridge or Freezer

9,700 MWK 15,000 MWK 21,000 MWK
MINIMUM AVERAGE MAXIMUM
$5.8 $8.9 $12

Washing Machine

13,000 MWK 18,000 MWK 33,000 MWK
MINIMUM AVERAGE MAXIMUM
$7.6 $11 $20

Stove or Cooker

12,000 MWK 15,000 MWK 21,000 MWK
MINIMUM AVERAGE MAXIMUM
$7 $8.9 $12

Mobile Phone

14,000 MWK 17,000 MWK 24,000 MWK
MINIMUM AVERAGE MAXIMUM
$8.2 $9.8 $14

Laptop or Computer

15,000 MWK 18,000 MWK 33,000 MWK
MINIMUM AVERAGE MAXIMUM
$8.9 $11 $20

Expenditure to Income Ratio 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.

Cost of living and expenditure to income ratio in Malawi

Spending to Income Ratio

87%

81% to 96%

( expenditure / income ) x 100


Expense to income distribution levels

Spending To Income Ratio% People
< 50%4%
50% - 60%9%
60% - 70%15%
70% - 80%25%
80% - 90%20%
90% - 100%11%
100% - 110%6%
110% - 120%4%
120% - 130%3%
130% - 140%2%
> 140%2%

Interpretation and Analysis

The average spending-to-salary ratio in Malawi is 87% This means that on average, people spend around 87% of their income for living. According to the distribution table, 15% 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
78%
Spending-Income-Ratio
73%
86%

Couple
83%
Spending-Income-Ratio
77%
91%

Family
91%
Spending-Income-Ratio
85%
100%
Distribution of monthly cost of living expenses in Malawi

How do people spend their money in Malawi?

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 Expenditure23%

23% of total expenses on average (12% to 31%)

LOW$2.3   3,900 MWK
AVERAGE$30   50,000 MWK
HIGH$300   500,000 MWK
Per Month

People living in Malawi typically spend from 12% to 31% of their total monthly expenditure on housing with 23% being the average. The average spend on housing is 50,000 MWK with expenditure ranging from 3,900 MWK to 500,000 MWK. 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, Mobile8%

8% of total expenses on average (5% to 12%)

LOW$0.38   650 MWK
AVERAGE$5   8,400 MWK
HIGH$50   84,000 MWK
Per Month

Utility expenditure like electricity, water, and gas in Malawi ranges from 5% to 12% of total expenses with 8% being the average. The average monthly cost of utilities is 8,400 MWK with 650 MWK and 84,000 MWK being the upper and lower limits.

Transport, Fuel, Commute7%

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

LOW$0.77   1,300 MWK
AVERAGE$10   17,000 MWK
HIGH$100   170,000 MWK
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 1,300 MWK to 170,000 MWK on commuting with 17,000 MWK 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$1.9   3,200 MWK
AVERAGE$25   42,000 MWK
HIGH$250   420,000 MWK
Per Month

The average outlay on groceries in a month in Malawi is 42,000 MWK. The cost of groceries can range between 3,200 MWK to 420,000 MWK. 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$0.54   900 MWK
AVERAGE$7   12,000 MWK
HIGH$70   120,000 MWK
Per Month

People in Malawi 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 900 MWK to 120,000 MWK with 12,000 MWK being the norm.

Leisure and Shopping4%

4% of total expenses on average (2% to 8%)

LOW$0.31   520 MWK
AVERAGE$4   6,700 MWK
HIGH$40   67,000 MWK
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 520 MWK to 67,000 MWK with 6,700 MWK being the average. Speaking of percentages, that equates to 2% to 8% of total expenses with an average of 4% for most residents.

Education and Schooling5%

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

LOW$0.46   770 MWK
AVERAGE$6   10,000 MWK
HIGH$60   100,000 MWK
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 10,000 MWK per month with 770 MWK being the minimum spent amount and 100,000 MWK being the maximum.

Other Expenses14%

14% of total expenses on average (9% to 21%)

LOW$1.00   1,700 MWK
AVERAGE$13   22,000 MWK
HIGH$130   220,000 MWK
Per Month
Percentage of people who manage to save money from their income every month in Malawi

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


Saving Money
50%
Not Saving
50%

Almost 50% of the surveyed people in Malawi said that they can save some money at the end of each month while 50% said that aren't saving anything.


Percentage of people saving money by population group in Malawi

GroupSaversNon Savers
Singles54%46%
Couples49%51%
Families44%56%

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 Malawi

Saving to Income Ratio

9% 17% of income 29%
MINIMUM AVERAGE MAXIMUM

Average Monthly Saved Amount

3,600 MWK
$2.1
47,000 MWK
$28
470,000 MWK
$280
MINIMUM AVERAGE MAXIMUM

For most people, 9% to 29% 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 47,000 MWK on average with savings ranging from 3,600 MWK to 470,000 MWK.

54% of surveyed singles reported some of their income going to savings while 49% of couples said the same. 44% of families confirmed their ability to save money.


How much money do people actually save in Malawi?

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% 21% of income 31%
MINIMUM AVERAGE MAXIMUM

Average Monthly Saved Amount

3,600 MWK
$2.1
32,000 MWK
$19
220,000 MWK
$130
MINIMUM AVERAGE MAXIMUM

Savings to income distribution levels for singles

Saving To Income Ratio% Singles
0% - 10%31%
10% - 20%25%
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 31% 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 32,000 MWK with 3,600 MWK and 220,000 MWK being the minimum and maximum respectively.


Couples

Saving to Income Ratio

10% 19% of income 30%
MINIMUM AVERAGE MAXIMUM

Average Monthly Saved Amount

18,000 MWK
$11
54,000 MWK
$32
290,000 MWK
$170
MINIMUM AVERAGE MAXIMUM

Savings to income distribution levels for couples

Saving To Income Ratio% Couples
0% - 10%35%
10% - 20%27%
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 10% to 30% of their monthly income, with 19% being the average for most couples. The average amount of money that couples can save is 54,000 MWK with 18,000 MWK and 290,000 MWK being the minimum and maximum respectively.


Families

Saving to Income Ratio

9% 16% of income 28%
MINIMUM AVERAGE MAXIMUM

Average Monthly Saved Amount

25,000 MWK
$15
72,000 MWK
$43
470,000 MWK
$280
MINIMUM AVERAGE MAXIMUM

Savings to income distribution levels for families

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

Interpretation and Analysis

Families in Malawi can save anywhere between 9% to 28% of their monthly income, with 16% being the average for most families. The average 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.

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

Saving Challenges in Malawi

Reasons that make it difficult for people to save money

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


Reason% People
Low Income5%
High Expenses8%
Debt and Loans13%
Lack of Budgeting Skills12%
Impulsive Spending12%
Financial Emergencies7%
Living the moment5%
Will do it later21%
Inflation13%
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. 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% 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.

Where do people choose to put their savings in Malawi

Typical saving choices for people in Malawi

Where do people choose to put their savings?


Saving Type% People
Emergency Funds12%
Gold13%
Savings Accounts17%
Retirement Accounts10%
Cash Savings21%
Real Estate9%
Investment5%
Stocks4%
Bonds5%
Mutual Funds2%
Certificates of Deposit3%
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.

Income and cost of living compatibility. Is it affordable or economical to live in Malawi

Affordable living in Malawi

Income and cost of living compatibility

We asked residents one simple question and recorded their answers.

Is it affordable or economical to live in Malawi?


Yes
42%
No
58%

Around 42% of surveyed residents 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.

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

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 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 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

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

Yes40%

No60%


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

Financial literacy and difficulty in budgeting and financial planning in Malawi

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 residents of 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 residents 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 and targets of people living in Malawi

Financial goals of people 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.


Financial Goal% People
Emergency Fund8%
Debt Reduction43%
Retirement Savings10%
Education Funding7%
Homeownership18%
Investing6%
Travel or Lifestyle6%
Healthcare Expenses14%
Financial Independence5%

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 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.

Retirement, pension plans, and life after work in Malawi

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

Retirement age

The retirement age for most employees in Malawi 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 Malawi:
AgeAmount
25430,000 MWK
30860,000 MWK
351.5M MWK
402.1M MWK
453.2M MWK
504.5M MWK
555.4M MWK
606.7M MWK
657.9M MWK

Retirement Income Distribution

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

Source% People
Pensions12%
Savings23%
Investments12%
Social Security7%
Annuities7%
Part-time Job15%
Real Estate18%
Dividends and Interest7%

Retirement Monthly Expenses in Malawi

9,600 MWK
$5.7
86,000 MWK
$51
580,000 MWK
$340
MINIMUM AVERAGE MAXIMUM
Chart showing the percentage of people who are in debt in Malawi

Debt, loans, and mortgages in Malawi


Percentage of people who are in debt


In Debt
32%
Debt Free
68%

According to the survey, 32% of the people 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.


Chart showing debt-to-income ratio in Malawi

Debt-to-income ratio in Malawi

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 Malawi goes to debt settlement.


Debt levels

Monthly debt settlement payment as percentage of monthly income

Debt-to-income ratio% People
> 60%3%
50% - 60%18%
40% - 50%15%
30% - 40%17%
20% - 30%10%
10% - 20%12%
0% - 10%25%

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

Debt% People
Real Estate Mortgage8%
Auto Loan15%
Student Loan4%
Credit Card30%
Personal Loan43%

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.


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 Malawi

Besides measuring the loan-to-income ratio, we asked residents 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.

Frequency% People
Never50%
Once a year24%
Twice a year13%
Three times a year9%
Four times a year4%
Housing and accommodation affordability, property price to income ratio, rent to income ratio, and housing affordability index chart in Malawi

Housing costs, accommodation, and housing affordability in Malawi

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


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.


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


30 x84 monthly income 191
MINIMUM AVERAGE MAXIMUM

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


Rent to income ratio

( monthly rental / monthly income ) x 100


18% 28% of income 38%
MINIMUM AVERAGE MAXIMUM

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.


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.


260 MWK 3,400 MWK 34,000 MWK
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.

Monthly costs and expenses of energy and basic utilities in Malawi

Utilities expenditure can vary slightly between different areas and locations.


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

Utility Bill Cost / Electricity + Water + Gas / Individual

970 MWK 7,000 MWK 46,000 MWK
MINIMUM AVERAGE MAXIMUM
$0.58 $4.1 $28

Utility Bill Cost / Electricity + Water + Gas / Couple

2,600 MWK 8,700 MWK 57,000 MWK
MINIMUM AVERAGE MAXIMUM
$1.5 $5.2 $34

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

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 Malawi ranges between 970 MWK and 46,000 MWK with average being 7,000 MWK, meanwhile the expenditure of couples is slightly higher at 8,700 MWK with 2,600 MWK and 57,000 MWK 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 13,000 MWK. The cost of internet and WiFi is unchanged among the three groups and 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


( monthly utility expenses / monthly income ) x 100


4% 7% of income 11%
MINIMUM AVERAGE MAXIMUM

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

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


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


( monthly grocery expenses / monthly income ) x 100


19% 27% of income 33%
MINIMUM AVERAGE MAXIMUM

The average grocery-to-income ratio in Malawi is around 27%. This means that people 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 every population group

A single person living alone spends approximately 19,000 MWK per month on grocery and food with expenditure fluctuating between 2,600 MWK and 120,000 MWK depending on location and the type of person. The average cost of food and groceries for a couple is around 27,000 MWK per month. That number can be get as low as 9,000 MWK or a high as 140,000 MWK. Families' spending on grocery ranges from 16,000 MWK to 300,000 MWK with the location, income, and size of the family being the most determinite factors.


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

Housing cost for a single person29%

29% of total expenses on average (17% to 41%)

LOW$3.5   5,800 MWK
AVERAGE$25   42,000 MWK
HIGH$170   280,000 MWK
Per Month

Utilities, Electricity, Water, Internet, Mobile9%

9% of total expenses on average (5% to 14%)

LOW$0.58   970 MWK
AVERAGE$4.1   7,000 MWK
HIGH$28   46,000 MWK
Per Month

Transport and Fuel Cost5%

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

LOW$0.77   1,300 MWK
AVERAGE$5.5   9,300 MWK
HIGH$37   62,000 MWK
Per Month

Food and Groceries Cost19%

19% of total expenses on average (13% to 24%)

LOW$1.5   2,600 MWK
AVERAGE$11   19,000 MWK
HIGH$74   120,000 MWK
Per Month

Healthcare Cost12%

12% of total expenses on average (6% to 16%)

LOW$0.87   1,500 MWK
AVERAGE$6.2   10,000 MWK
HIGH$41   70,000 MWK
Per Month

Leisure and Shopping Expenditure2%

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

LOW$0.48   810 MWK
AVERAGE$3.5   5,800 MWK
HIGH$23   39,000 MWK
Per Month

Education Cost1%

1% of total expenses on average (0.00% to 3%)

LOW$0.19   320 MWK
AVERAGE$1.4   2,300 MWK
HIGH$9.2   15,000 MWK
Per Month

Other Expenses22%

22% of total expenses on average (14% to 26%)

LOW$1.7   2,900 MWK
AVERAGE$12   21,000 MWK
HIGH$83   140,000 MWK
Per Month


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

Housing cost for a couple26%

26% of total expenses on average (19% to 36%)

LOW$13   22,000 MWK
AVERAGE$39   66,000 MWK
HIGH$210   350,000 MWK
Per Month

Utilities, Electricity, Water, Internet, Mobile8%

8% of total expenses on average (6% to 12%)

LOW$1.5   2,600 MWK
AVERAGE$5.2   8,700 MWK
HIGH$34   57,000 MWK
Per Month

Transport and Fuel Cost9%

9% of total expenses on average (3% to 14%)

LOW$4.6   7,700 MWK
AVERAGE$14   23,000 MWK
HIGH$74   120,000 MWK
Per Month

Food and Groceries Cost17%

17% of total expenses on average (12% to 22%)

LOW$5.4   9,000 MWK
AVERAGE$16   27,000 MWK
HIGH$86   140,000 MWK
Per Month

Healthcare Cost14%

14% of total expenses on average (8% to 18%)

LOW$4.2   7,100 MWK
AVERAGE$13   21,000 MWK
HIGH$68   110,000 MWK
Per Month

Leisure and Shopping Cost3%

3% of total expenses on average (1% to 6%)

LOW$2.3   3,900 MWK
AVERAGE$6.9   12,000 MWK
HIGH$37   62,000 MWK
Per Month

Education Cost1%

1% of total expenses on average (0.00% to 3%)

LOW$0.77   1,300 MWK
AVERAGE$2.3   3,900 MWK
HIGH$12   21,000 MWK
Per Month

Other Expenses21%

21% of total expenses on average (15% to 27%)

LOW$6.5   11,000 MWK
AVERAGE$20   33,000 MWK
HIGH$100   180,000 MWK
Per Month


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

Housing cost for a family25%

25% of total expenses on average (20% to 35%)

LOW$17   29,000 MWK
AVERAGE$49   83,000 MWK
HIGH$320   540,000 MWK
Per Month

Utilities, Electricity, Water, Internet, Mobile6%

6% of total expenses on average (4% to 9%)

LOW$2.7   4,500 MWK
AVERAGE$7.7   13,000 MWK
HIGH$50   84,000 MWK
Per Month

Transport and Fuel Expenses5%

5% of total expenses on average (3% to 7%)

LOW$5.4   9,000 MWK
AVERAGE$15   26,000 MWK
HIGH$100   170,000 MWK
Per Month

Food and Groceries Cost21%

21% of total expenses on average (14% to 27%)

LOW$9.7   16,000 MWK
AVERAGE$28   46,000 MWK
HIGH$180   300,000 MWK
Per Month

Healthcare Expenses11%

11% of total expenses on average (7% to 16%)

LOW$4.8   8,100 MWK
AVERAGE$15   26,000 MWK
HIGH$80   130,000 MWK
Per Month

Leisure and Shopping Cost2%

2% of total expenses on average (1% to 6%)

LOW$2.7   4,500 MWK
AVERAGE$7.7   13,000 MWK
HIGH$50   84,000 MWK
Per Month

Education Cost13%

13% of total expenses on average (6% to 21%)

LOW$7.5   13,000 MWK
AVERAGE$22   36,000 MWK
HIGH$140   230,000 MWK
Per Month

Other Expenses16%

16% of total expenses on average (9% to 21%)

LOW$4.3   7,200 MWK
AVERAGE$12   21,000 MWK
HIGH$80   130,000 MWK
Per Month


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

Housing costs for Student17%

17% of total expenses on average (12% to 23%)

LOW$1.8   3,100 MWK
AVERAGE$12   21,000 MWK
HIGH$82   140,000 MWK
Per Month

Utilities, Electricity, Water, Internet, and Mobile Expenses7%

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

LOW$0.31   520 MWK
AVERAGE$2.1   3,500 MWK
HIGH$14   23,000 MWK
Per Month

Transport and Fuel Cost4%

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

LOW$0.54   900 MWK
AVERAGE$3.6   6,100 MWK
HIGH$24   40,000 MWK
Per Month

Food and Groceries Expenditure23%

23% of total expenses on average (17% to 27%)

LOW$1.5   2,600 MWK
AVERAGE$10   17,000 MWK
HIGH$69   120,000 MWK
Per Month

Healthcare Cost9%

9% of total expenses on average (6% to 12%)

LOW$0.46   770 MWK
AVERAGE$3.1   5,200 MWK
HIGH$21   35,000 MWK
Per Month

Leisure and Shopping Cost2%

2% of total expenses on average (2% to 6%)

LOW$0.38   650 MWK
AVERAGE$2.6   4,300 MWK
HIGH$17   29,000 MWK
Per Month

Education Cost18%

18% of total expenses on average (11% to 23%)

LOW$1.5   2,500 MWK
AVERAGE$9.8   16,000 MWK
HIGH$65   110,000 MWK
Per Month

Other Expenses19%

19% of total expenses on average (13% to 25%)

LOW$1.2   1,900 MWK
AVERAGE$7.7   13,000 MWK
HIGH$51   86,000 MWK
Per Month
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