Cost Of Living in Peru 2024

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

Whether you're living in Peru 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

11,000 PEN

per month
$2,900

840 PEN   $220
$29,000   110,000 PEN

Single

7,500 PEN

per month
$2,000

2,500 PEN   $660
$13,000   50,000 PEN

Couple

13,000 PEN

per month
$3,300

4,200 PEN   $1,100
$18,000   67,000 PEN

Family

17,000 PEN

per month
$4,400

5,800 PEN   $1,500
$24,000   92,000 PEN

Student

5,100 PEN

per month
$1,300

2,000 PEN   $540
$2,400   9,100 PEN
The figures displayed here are inclusive of everything: housing, travel, groceries, healthcare, etc.

Singles

The average monthly expense for a single person living in Peru is 7,500 PEN. Expenses can range from 2,500 PEN at the minimum level to 50,000 PEN at the highest end.


Couples

The average monthly spending of couples in Peru is 13,000 PEN. Expenditure can range from 4,200 PEN to 67,000 PEN per month.


Families

The average cost of living for families in Peru is 17,000 PEN per month. Families spend anywhere from 5,800 PEN to 92,000 PEN.


Students

The average monthly expenditure for students in Peru is 5,100 PEN. Students spend from 2,000 PEN to 9,100 PEN 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 Peru


Dining, food, and beverages costs


Large bottle of water
1.3 PEN 1.5 PEN 1.7 PEN
MINIMUM AVERAGE MAXIMUM
$0.35 $0.40 $0.46
Fast food combo meal
11 PEN 23 PEN 38 PEN
MINIMUM AVERAGE MAXIMUM
$3 $6 $9.9
Restaurant meal for one
38 PEN 56 PEN 110 PEN
MINIMUM AVERAGE MAXIMUM
$9.9 $15 $30
Fine dining meal for one
75 PEN 110 PEN 450 PEN
MINIMUM AVERAGE MAXIMUM
$20 $30 $120
Soda or Soft Drink
1.6 PEN 1.9 PEN 2.3 PEN
MINIMUM AVERAGE MAXIMUM
$0.43 $0.50 $0.60
Cappuccino or latte
9.4 PEN 15 PEN 23 PEN
MINIMUM AVERAGE MAXIMUM
$2.5 $4 $6

Grocery and market costs


Milk large bottle
7.5 PEN 9 PEN 11 PEN
MINIMUM AVERAGE MAXIMUM
$2 $2.4 $3
Loaf of bread
1.4 PEN 1.5 PEN 1.8 PEN
MINIMUM AVERAGE MAXIMUM
$0.36 $0.41 $0.47
12 eggs
5.6 PEN 7.5 PEN 11 PEN
MINIMUM AVERAGE MAXIMUM
$1.5 $2 $3
Fresh whole chicken
13 PEN 17 PEN 23 PEN
MINIMUM AVERAGE MAXIMUM
$3.4 $4.4 $6.2
Beef 1 kg or 1 lb
15 PEN 23 PEN 45 PEN
MINIMUM AVERAGE MAXIMUM
$4 $6 $12
Rice 1 kg or 1 lb
6 PEN 8.3 PEN 12 PEN
MINIMUM AVERAGE MAXIMUM
$1.6 $2.2 $3.1
Tomato 1 kg or 1 lb
2.3 PEN 3 PEN 5.6 PEN
MINIMUM AVERAGE MAXIMUM
$0.60 $0.79 $1.5
Apples 1 kg or 1 lb
4 PEN 5.3 PEN 8.7 PEN
MINIMUM AVERAGE MAXIMUM
$1.1 $1.4 $2.3

Commute, travel, and transportation costs


20 minutes taxi ride
9.4 PEN 11 PEN 23 PEN
MINIMUM AVERAGE MAXIMUM
$2.5 $3 $6
Average car full tank
56 PEN 75 PEN 150 PEN
MINIMUM AVERAGE MAXIMUM
$15 $20 $40
Average car 1-day rental
56 PEN 75 PEN 110 PEN
MINIMUM AVERAGE MAXIMUM
$15 $20 $30
Average car price
28,000 PEN 56,000 PEN 75,000 PEN
MINIMUM AVERAGE MAXIMUM
$7,400 $15,000 $20,000
Bus ticket one way
1.9 PEN 2.8 PEN 5.6 PEN
MINIMUM AVERAGE MAXIMUM
$0.50 $0.74 $1.5
Car Service
75 PEN 110 PEN 230 PEN
MINIMUM AVERAGE MAXIMUM
$20 $30 $60

Utility cost (monthly)


Utility Bill - Individual
150 PEN 450 PEN 3,000 PEN
MINIMUM AVERAGE MAXIMUM
$40 $120 $800
Utility Bill - Couple
210 PEN 630 PEN 3,300 PEN
MINIMUM AVERAGE MAXIMUM
$55 $170 $890
Utility Bill - Family
180 PEN 500 PEN 2,800 PEN
MINIMUM AVERAGE MAXIMUM
$46 $130 $730
Internet and cable
56 PEN 110 PEN 150 PEN
MINIMUM AVERAGE MAXIMUM
$15 $30 $40
Mobile phone charges
45 PEN 75 PEN 230 PEN
MINIMUM AVERAGE MAXIMUM
$12 $20 $60

Leisure and activities costs


Movie ticket
28 PEN 38 PEN 56 PEN
MINIMUM AVERAGE MAXIMUM
$7.4 $9.9 $15
One month gym membership
90 PEN 110 PEN 230 PEN
MINIMUM AVERAGE MAXIMUM
$24 $30 $60

Cloths and accessories costs


Pair of jeans or pants
66 PEN 94 PEN 140 PEN
MINIMUM AVERAGE MAXIMUM
$18 $25 $37
Woman dress
63 PEN 87 PEN 280 PEN
MINIMUM AVERAGE MAXIMUM
$17 $23 $74
Woman shoes
59 PEN 80 PEN 190 PEN
MINIMUM AVERAGE MAXIMUM
$16 $21 $50
Men's shoes
51 PEN 63 PEN 130 PEN
MINIMUM AVERAGE MAXIMUM
$14 $17 $33
Men suit
56 PEN 70 PEN 380 PEN
MINIMUM AVERAGE MAXIMUM
$15 $19 $99
Regular t-shirt
28 PEN 38 PEN 110 PEN
MINIMUM AVERAGE MAXIMUM
$7.4 $9.9 $30

Housing costs / monthly rent


Studio apartment
940 PEN 1,400 PEN 3,800 PEN
MINIMUM AVERAGE MAXIMUM
$250 $370 $990
1-bedroom apartment
1,400 PEN 2,300 PEN 5,600 PEN
MINIMUM AVERAGE MAXIMUM
$370 $600 $1,500
2-bedroom apartment
1,900 PEN 2,800 PEN 7,500 PEN
MINIMUM AVERAGE MAXIMUM
$500 $740 $2,000

Housing costs / Buying


Studio apartment
190,000 PEN 280,000 PEN 560,000 PEN
MINIMUM AVERAGE MAXIMUM
$50,000 $74,000 $150,000
1-bedroom apartment
230,000 PEN 380,000 PEN 1.4M PEN
MINIMUM AVERAGE MAXIMUM
$60,000 $99,000 $370,000
2-bedroom apartment
380,000 PEN 1.1M PEN 2.3M PEN
MINIMUM AVERAGE MAXIMUM
$99,000 $300,000 $600,000

Furniture Costs


King Size Bed
1,100 PEN 1,400 PEN 1,900 PEN
MINIMUM AVERAGE MAXIMUM
$300 $370 $500
Double Bed
750 PEN 1,100 PEN 1,400 PEN
MINIMUM AVERAGE MAXIMUM
$200 $300 $370
Single Bed
660 PEN 870 PEN 1,100 PEN
MINIMUM AVERAGE MAXIMUM
$180 $230 $300
Living Room
1,300 PEN 1,600 PEN 5,600 PEN
MINIMUM AVERAGE MAXIMUM
$330 $430 $1,500
Dining Table
560 PEN 750 PEN 1,400 PEN
MINIMUM AVERAGE MAXIMUM
$150 $200 $370
Sofa or Couch
750 PEN 1,000 PEN 2,300 PEN
MINIMUM AVERAGE MAXIMUM
$200 $270 $600

Electronics and House Appliance Costs


TV Set
750 PEN 1,100 PEN 2,300 PEN
MINIMUM AVERAGE MAXIMUM
$200 $300 $600
Fridge or Freezer
660 PEN 1,000 PEN 1,400 PEN
MINIMUM AVERAGE MAXIMUM
$180 $270 $370
Washing Machine
870 PEN 1,300 PEN 2,300 PEN
MINIMUM AVERAGE MAXIMUM
$230 $330 $600
Stove or Cooker
800 PEN 1,000 PEN 1,400 PEN
MINIMUM AVERAGE MAXIMUM
$210 $270 $370
Mobile Phone
940 PEN 1,100 PEN 1,600 PEN
MINIMUM AVERAGE MAXIMUM
$250 $300 $430
Laptop or Computer
1,000 PEN 1,300 PEN 2,300 PEN
MINIMUM AVERAGE MAXIMUM
$270 $330 $600

Expenditure to Income Ratio in Peru

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

84%

75% to 93%

( expenditure / income ) x 100


Expense to income distribution levels

Spending To Income Ratio% People
< 50%6%
50% - 60%11%
60% - 70%18%
70% - 80%26%
80% - 90%16%
90% - 100%9%
100% - 110%5%
110% - 120%3%
120% - 130%2%
130% - 140%2%
> 140%1%

Interpretation and Analysis

The average spending-to-salary ratio in Peru is 84% This means that on average, people spend around 84% of their income for living. According to the distribution table, 18% 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
76%
Spending-Income-Ratio
68%
84%

Couple
80%
Spending-Income-Ratio
71%
88%

Family
88%
Spending-Income-Ratio
79%
98%

How do people spend their money in Peru?

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 Expenditure27%

27% of total expenses on average (16% to 35%)

LOW$66   250 PEN
AVERAGE$860   3,300 PEN
HIGH$8,600   33,000 PEN
Per Month

People living in Peru typically spend from 16% to 35% of their total monthly expenditure on housing with 27% being the average. The average spend on housing is 3,300 PEN with expenditure ranging from 250 PEN to 33,000 PEN. 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, Water6%

6% of total expenses on average (3% to 10%)

LOW$11   42 PEN
AVERAGE$140   540 PEN
HIGH$1,400   5,400 PEN
Per Month

Utility expenditure like electricity, water, and gas in Peru ranges from 3% to 10% of total expenses with 6% being the average. The average monthly cost of utilities is 540 PEN with 42 PEN and 5,400 PEN being the upper and lower limits.

Transport, Fuel, Commute8%

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

LOW$22   84 PEN
AVERAGE$290   1,100 PEN
HIGH$2,900   11,000 PEN
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 84 PEN to 11,000 PEN on commuting with 1,100 PEN 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$55   210 PEN
AVERAGE$720   2,700 PEN
HIGH$7,200   27,000 PEN
Per Month

The average outlay on groceries in a month in Peru is 2,700 PEN. The cost of groceries can range between 210 PEN to 27,000 PEN. 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$15   58 PEN
AVERAGE$200   760 PEN
HIGH$2,000   7,600 PEN
Per Month

People in Peru 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 58 PEN to 7,600 PEN with 760 PEN being the norm.

Leisure and Shopping6%

6% of total expenses on average (3% to 10%)

LOW$8.9   33 PEN
AVERAGE$120   430 PEN
HIGH$1,200   4,300 PEN
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 33 PEN to 4,300 PEN with 430 PEN being the average. Speaking of percentages, that equates to 3% to 10% of total expenses with an average of 6% for most residents.

Education and Schooling6%

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

LOW$13   50 PEN
AVERAGE$170   650 PEN
HIGH$1,700   6,500 PEN
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 650 PEN per month with 50 PEN being the minimum spent amount and 6,500 PEN being the maximum.

Other Expenses12%

12% of total expenses on average (7% to 19%)

LOW$29   110 PEN
AVERAGE$370   1,400 PEN
HIGH$3,700   14,000 PEN
Per Month

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


Saving Money
64%
Not Saving
36%

Almost 64% of the surveyed people in Peru said that they can save some money at the end of each month while 36% said that aren't saving anything.

Percentage of people saving money by population group in Peru

GroupSaversNon Savers
Singles64%36%
Couples59%41%
Families54%46%

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

12% 21% of income 32%
MINIMUM AVERAGE MAXIMUM

Average Monthly Saved Amount

290 PEN
$77		 3,800 PEN
$1,000		 38,000 PEN
$10,000
MINIMUM AVERAGE MAXIMUM

For most people, 12% to 32% of their monthly income is what they can allocate to their savings, with 21% being the average. The amount of money that people can save is approximately 3,800 PEN on average with savings ranging from 290 PEN to 38,000 PEN.

64% of surveyed singles reported some of their income going to savings while 59% of couples said the same. 54% of families confirmed their ability to save money.

How much money do people actually save in Peru?

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

15% 25% of income 34%
MINIMUM AVERAGE MAXIMUM

Average Monthly Saved Amount

870 PEN
$230		 2,600 PEN
$690		 17,000 PEN
$4,600
MINIMUM AVERAGE MAXIMUM

Savings to income distribution levels for singles

Saving To Income Ratio% Singles
0% - 10%28%
10% - 20%22%
20% - 30%16%
30% - 40%17%
40% - 50%13%
> 50%4%

Interpretation and Analysis

Singles who can afford to save reported that they allocate from 15% to 34% of their monthly income to savings, with 25% being the average for most singles. The average amount of money that singles are able to save is 2,600 PEN with 870 PEN and 17,000 PEN being the minimum and maximum respectively.

Couples

Saving to Income Ratio

13% 23% of income 33%
MINIMUM AVERAGE MAXIMUM

Average Monthly Saved Amount

1,400 PEN
$380		 4,300 PEN
$1,100		 23,000 PEN
$6,100
MINIMUM AVERAGE MAXIMUM

Savings to income distribution levels for couples

Saving To Income Ratio% Couples
0% - 10%32%
10% - 20%24%
20% - 30%19%
30% - 40%12%
40% - 50%10%
> 50%3%

Interpretation and Analysis

Couples who confirmed their ability to save reported saving equivalent to 13% to 33% of their monthly income, with 23% being the average for most couples. The average amount of money that couples can save is 4,300 PEN with 1,400 PEN and 23,000 PEN being the minimum and maximum respectively.

Families

Saving to Income Ratio

12% 20% of income 30%
MINIMUM AVERAGE MAXIMUM

Average Monthly Saved Amount

2,000 PEN
$540		 5,800 PEN
$1,500		 32,000 PEN
$8,400
MINIMUM AVERAGE MAXIMUM

Savings to income distribution levels for families

Saving To Income Ratio% Families
0% - 10%35%
10% - 20%27%
20% - 30%20%
30% - 40%9%
40% - 50%7%
> 50%2%

Interpretation and Analysis

Families in Peru can save anywhere between 12% to 30% of their monthly income, with 20% being the average for most families. The average amount of money that families can put aside is 5,800 PEN with 2,000 PEN and 32,000 PEN 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 Peru

Income and cost of living compatibility

We asked residents one simple question and recorded their answers.

Is it affordable or economical to live in Peru?


Yes
64%
No
36%

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

Low-cost alternatives in Peru

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 options60%

Few low-cost options40%


Based on the survey, 60% of the people living in Peru have no problem finding low-cost alternatives to support a frugal lifestyle while 40% 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 Peru whether they have an emergency fund and the answers were as follows.

Yes64%

No36%


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

Financial Literacy in Peru

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 Leteracy59%


We asked residents of Peru whether they acquired any adequate personal financial training in their lives. Approximately 41% 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 59% 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 Peru have problems or difficulties in managing their expenditures and savings so asked the people one simple question: do you struggle with your personal finances? 31% of the participants reported that they indeed struggle in creating budgets and in organizing their finances while 69% said that they have everything under control.

Struggles with finance31%

Easily manages finances69%

Financial goals of people in Peru

In an attempt to understand the economic situation in Peru, 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 Reduction33%
Retirement Savings8%
Education Funding8%
Homeownership17%
Investing9%
Travel or Lifestyle11%
Healthcare Expenses9%
Financial Independence8%

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 33% 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. 9% of the population would like to build wealth through investments such as stocks, bonds, mutual funds, or real estate. For 11% of people, saving for vacations or upgrading their lifestyle is the number one concern. Approximately 9% of the residents said that saving for healthcare expenses including insurance premiums is their main goal.

Saving Challenges in Peru

Reasons that make it difficult for people to save money

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


Reason% People
Low Income6%
High Expenses9%
Debt and Loans18%
Lack of Budgeting Skills10%
Impulsive Spending9%
Financial Emergencies6%
Living the moment7%
Will do it later17%
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. 18% of the residents said that they are burdened with debt and find it challenging to save money. 10% 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. 9% 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. 7% bluntly said that they don't see the purpose of it and prefer to live each day to the fullest. 17% 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 Peru

Where do people choose to put their savings?


Saving Type% People
Emergency Funds11%
Gold10%
Savings Accounts17%
Retirement Accounts11%
Cash Savings16%
Real Estate10%
Investment6%
Stocks6%
Bonds6%
Mutual Funds3%
Certificates of Deposit3%

Retirement, pension plans, and life after work in Peru

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

Retirement age

The retirement age for most employees in Peru 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 Peru:
AgeAmount
2529,000 PEN
3059,000 PEN
35100,000 PEN
40150,000 PEN
45220,000 PEN
50310,000 PEN
55370,000 PEN
60450,000 PEN
65540,000 PEN

Retirement Income Distribution

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

Source% People
Pensions13%
Savings22%
Investments13%
Social Security8%
Annuities8%
Part-time Job10%
Real Estate17%
Dividends and Interest8%

Retirement Monthly Expenses in Peru

1,800 PEN
$490		 5,500 PEN
$1,500		 37,000 PEN
$9,700
MINIMUM AVERAGE MAXIMUM

Debt, loans, and mortgages in Peru


Percentage of people who are in debt


In Debt
24%
Debt Free
76%

According to the survey, 24% of the people in Peru have some kind of debt, loan, mortgage, or credit card payments while 76% reported that they don't have financial obligations to banks.


Debt-to-income ratio in Peru

Debt to income ratio

29%

20% to 38%

( 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 29% of the people's monthly income in Peru goes to debt settlement.


Debt levels

Monthly debt settlement payment as percentage of monthly income

Debt-to-income ratio% People
> 60%3%
50% - 60%12%
40% - 50%11%
30% - 40%13%
20% - 30%15%
10% - 20%18%
0% - 10%28%

According to our data, 3% of the debtors in Peru pay 60%+ of their income as debt settlement while 12% of the people pay 50% to 60% of their income for the same, which is quite an alarming financial situation for those individuals. 11% of people in debt dedicate 40% to 50% of their income to loan and mortgage payments while 13% dedicated 30% to 40% of income for same. Things are looking brighter for 15% of individuals as they only pay 20% to 30% of their income for loan and credit card repayment.


Distribution by type of debt in Peru

Debt% People
Real Estate Mortgage13%
Auto Loan22%
Student Loan3%
Credit Card25%
Personal Loan37%

13% of debtors in Peru confirm that real estate mortgages constitutes the main part of their outstanding debt while 25% say that credit card payments are the reason they are in debt. Auto loans were the main type of debt for 22% of people and personal loans rose at 37%. Lastly, student loans are the main source of debt for 3% of debtors in Peru.


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 Peru

Besides measuring the loan-to-income ratio, we asked residents of Peru 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
Never55%
Once a year22%
Twice a year11%
Three times a year8%
Four times a year4%

Housing costs, accommodation, and housing affordability in Peru

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


Rent Cost in Peru

Monthly Rent Prices

Studio apartment
940 PEN 1,400 PEN 3,800 PEN
MINIMUM AVERAGE MAXIMUM
$250 $370 $990
1-bedroom apartment
1,400 PEN 2,300 PEN 5,600 PEN
MINIMUM AVERAGE MAXIMUM
$370 $600 $1,500
2-bedroom apartment
1,900 PEN 2,800 PEN 7,500 PEN
MINIMUM AVERAGE MAXIMUM
$500 $740 $2,000
3-bedroom apartment
2,300 PEN 3,800 PEN 10,000 PEN
MINIMUM AVERAGE MAXIMUM
$600 $990 $2,700
Furnished apartment
4,500 PEN 11,000 PEN 23,000 PEN
MINIMUM AVERAGE MAXIMUM
$1,200 $3,000 $6,000
Townhouse
3,800 PEN 5,600 PEN 16,000 PEN
MINIMUM AVERAGE MAXIMUM
$990 $1,500 $4,300
House
4,500 PEN 11,000 PEN 23,000 PEN
MINIMUM AVERAGE MAXIMUM
$1,200 $3,000 $6,000
Villa
5,600 PEN 14,000 PEN 23,000 PEN
MINIMUM AVERAGE MAXIMUM
$1,500 $3,700 $6,000

The monthly rental cost of a studio apartment in Peru ranges between 940 PEN and 3,800 PEN, meanwhile the cost of monthly rental of a one-bedroom apartment can be anywhere from 1,400 PEN to 5,600 PEN. Two-bedroom rentals rate ranges between 1,900 PEN and 7,500 PEN per month. The monthly rental for a three-bedroom apartment ranges from 2,300 PEN to 10,000 PEN. The average rent of a townhouse in Peru is around 5,600 PEN while house rental costs can be as high as 11,000 PEN per month. Finally, if you want to rent a villa, expect to pay anywhere from 5,600 PEN to 23,000 PEN per month.



Apartment and house prices in Peru

Cost of buying a property

Studio apartment
190,000 PEN 280,000 PEN 560,000 PEN
MINIMUM AVERAGE MAXIMUM
$50,000 $74,000 $150,000
1-bedroom apartment
230,000 PEN 380,000 PEN 1.4M PEN
MINIMUM AVERAGE MAXIMUM
$60,000 $99,000 $370,000
2-bedroom apartment
380,000 PEN 1.1M PEN 2.3M PEN
MINIMUM AVERAGE MAXIMUM
$99,000 $300,000 $600,000
3-bedroom apartment
1.3M PEN 1.9M PEN 5.6M PEN
MINIMUM AVERAGE MAXIMUM
$330,000 $500,000 $1.5M
Townhouse
1.6M PEN 3.8M PEN 14M PEN
MINIMUM AVERAGE MAXIMUM
$430,000 $990,000 $3.7M
House
1.9M PEN 11M PEN 16M PEN
MINIMUM AVERAGE MAXIMUM
$500,000 $3M $4.3M
Villa
2.3M PEN 13M PEN 19M PEN
MINIMUM AVERAGE MAXIMUM
$600,000 $3.3M $5M

The average price of a studio apartment in Peru can range from 190,000 PEN to 560,000 PEN depending on location. One bedroom cost can be anywhere from 230,000 PEN to 1.4M PEN. A villa can cost you 13M PEN on average with prices ranging from 2.3M PEN to 19M PEN.


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


40 x117 monthly income 210
MINIMUM AVERAGE MAXIMUM

Property prices in Peru can be x117 to x210 multiples of the monthly income depending on the property and the income of the person. On average, property prices are approximately x117 multiples of the average monthly salary in Peru.



Rent to income ratio


Rent to income ratio

( monthly rental / monthly income ) x 100


22% 32% of income 42%
MINIMUM AVERAGE MAXIMUM

The average rent-to-income ratio in Peru is around 32%. This means that people pay 32% of their income for rent. Those figures can range from 22% to 42% 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
30%

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.


17 PEN 220 PEN 2,200 PEN
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.


SingleSpending habits, consumption analysis, and expenditure patterns for a single person living in Peru

Housing33%

33% of total expenses on average (21% to 45%)

LOW$240   900 PEN
AVERAGE$720   2,700 PEN
HIGH$4,800   18,000 PEN
Per Month

Utilities, Electricity, Water7%

7% of total expenses on average (3% to 12%)

LOW$40   150 PEN
AVERAGE$120   450 PEN
HIGH$800   3,000 PEN
Per Month

Transport, Fuel6%

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

LOW$53   200 PEN
AVERAGE$160   600 PEN
HIGH$1,100   4,000 PEN
Per Month

Food and Groceries18%

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

LOW$110   400 PEN
AVERAGE$320   1,200 PEN
HIGH$2,100   8,000 PEN
Per Month

Healthcare11%

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

LOW$60   230 PEN
AVERAGE$180   680 PEN
HIGH$1,200   4,500 PEN
Per Month

Leisure, Shopping4%

4% of total expenses on average (3% to 7%)

LOW$33   130 PEN
AVERAGE$100   380 PEN
HIGH$660   2,500 PEN
Per Month

Education2%

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

LOW$13   50 PEN
AVERAGE$40   150 PEN
HIGH$270   1,000 PEN
Per Month

Other Expenses20%

20% of total expenses on average (12% to 24%)

LOW$120   450 PEN
AVERAGE$360   1,400 PEN
HIGH$2,400   9,000 PEN
Per Month


CoupleAverage monthly living expenditure breaks and spending patterns for couples in Peru

Housing30%

30% of total expenses on average (23% to 40%)

LOW$370   1,400 PEN
AVERAGE$1,100   4,100 PEN
HIGH$5,800   22,000 PEN
Per Month

Utilities, Electricity, Water6%

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

LOW$55   210 PEN
AVERAGE$170   630 PEN
HIGH$890   3,300 PEN
Per Month

Transport, Fuel10%

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

LOW$130   500 PEN
AVERAGE$400   1,500 PEN
HIGH$2,100   8,000 PEN
Per Month

Food and Groceries16%

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

LOW$150   580 PEN
AVERAGE$460   1,800 PEN
HIGH$2,500   9,400 PEN
Per Month

Healthcare13%

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

LOW$120   460 PEN
AVERAGE$370   1,400 PEN
HIGH$1,900   7,400 PEN
Per Month

Leisure, Shopping5%

5% of total expenses on average (2% to 8%)

LOW$66   250 PEN
AVERAGE$200   750 PEN
HIGH$1,100   4,000 PEN
Per Month

Education2%

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

LOW$22   84 PEN
AVERAGE$66   250 PEN
HIGH$350   1,300 PEN
Per Month

Other Expenses19%

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

LOW$190   710 PEN
AVERAGE$560   2,100 PEN
HIGH$3,000   11,000 PEN
Per Month


FamilyAverage monthly expenses and break out of spending for families living in Peru

Housing29%

29% of total expenses on average (24% to 39%)

LOW$500   1,900 PEN
AVERAGE$1,400   5,300 PEN
HIGH$7,800   29,000 PEN
Per Month

Transport, Fuel6%

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

LOW$120   470 PEN
AVERAGE$350   1,300 PEN
HIGH$1,900   7,400 PEN
Per Month

Food and Groceries20%

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

LOW$280   1,100 PEN
AVERAGE$800   3,000 PEN
HIGH$4,400   17,000 PEN
Per Month

Healthcare10%

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

LOW$120   470 PEN
AVERAGE$350   1,300 PEN
HIGH$1,900   7,400 PEN
Per Month

Leisure, Shopping4%

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

LOW$77   290 PEN
AVERAGE$220   840 PEN
HIGH$1,200   4,600 PEN
Per Month

Education14%

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

LOW$220   820 PEN
AVERAGE$620   2,300 PEN
HIGH$3,400   13,000 PEN
Per Month

Other Expenses14%

14% of total expenses on average (7% to 19%)

LOW$190   700 PEN
AVERAGE$530   2,000 PEN
HIGH$2,900   11,000 PEN
Per Month


StudentCost of living and expenses break down for students living in Peru

Housing21%

21% of total expenses on average (16% to 27%)

LOW$130   490 PEN
AVERAGE$320   1,200 PEN
HIGH$580   2,200 PEN
Per Month

Utilities, Electricity, Water5%

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

LOW$21   81 PEN
AVERAGE$54   200 PEN
HIGH$97   360 PEN
Per Month

Transport, Fuel5%

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

LOW$38   140 PEN
AVERAGE$94   350 PEN
HIGH$170   640 PEN
Per Month

Food and Groceries22%

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

LOW$110   410 PEN
AVERAGE$270   1,000 PEN
HIGH$480   1,800 PEN
Per Month

Healthcare8%

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

LOW$32   120 PEN
AVERAGE$80   300 PEN
HIGH$140   550 PEN
Per Month

Leisure, Shopping4%

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

LOW$27   100 PEN
AVERAGE$67   250 PEN
HIGH$120   460 PEN
Per Month

Education19%

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

LOW$100   380 PEN
AVERAGE$250   960 PEN
HIGH$460   1,700 PEN
Per Month

Other Expenses17%

17% of total expenses on average (11% to 23%)

LOW$80   300 PEN
AVERAGE$200   760 PEN
HIGH$360   1,400 PEN
Per Month
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