Peru Cost of Living 2026: Monthly Budget Breakdown
Why Peru Remains One of South America's Best Values
Peru consistently ranks among the most affordable countries in South America for expatriates and retirees. Despite gradual inflation and a growing economy, the cost of living in Peru in 2026 remains dramatically lower than in the US, Canada, Western Europe, or Australia.
The Peruvian sol (PEN) has been relatively stable against the US dollar, trading in the range of 3.70-3.85 PEN per USD throughout late 2025 and into 2026. This stability, combined with low local prices, means your foreign currency stretches far.
But "Peru is cheap" is an oversimplification. Costs vary significantly between cities, neighborhoods, and lifestyle choices. This guide gives you the real numbers.
Cost of Living by City
Lima
Lima is Peru's capital, home to 10 million people, and by far the most expensive city in the country. However, "expensive" is relative — it is still a fraction of comparable cities in North America or Europe.
Miraflores and San Isidro are the premium districts where most expats settle. Barranco is a popular mid-range alternative. Neighborhoods like Jesús María and Pueblo Libre offer authentic Lima life at lower prices.
| Category | Budget | Mid-Range | Comfortable |
|---|---|---|---|
| Rent (1BR apartment) | $350-$450 | $500-$700 | $800-$1,200 |
| Rent (2BR apartment) | $500-$650 | $700-$1,000 | $1,100-$1,800 |
| Groceries | $150-$200 | $200-$300 | $300-$450 |
| Dining out | $60-$100 | $100-$200 | $200-$400 |
| Transportation | $30-$50 | $50-$100 | $100-$200 |
| Utilities | $60-$80 | $80-$120 | $120-$180 |
| Health insurance | $100-$150 | $150-$250 | $250-$400 |
| Entertainment | $50-$100 | $100-$200 | $200-$400 |
| Monthly Total | $800-$1,130 | $1,180-$1,870 | $2,070-$3,830 |
Key Lima notes:
- Local markets (mercados) cut grocery bills by 30-40% versus supermarkets like Wong or Vivanda.
- The Metropolitano bus system costs about $0.40 per ride. Taxis within Miraflores run $2-$5 via apps like InDriver or Uber.
- A menú del día (set lunch) at a local restaurant costs $2-$4 and includes soup, main course, and a drink.
Cusco
Cusco is Peru's tourism capital, which creates a two-tier pricing system. Tourist-facing businesses in the Plaza de Armas area charge significantly more than businesses a few blocks away in neighborhoods like San Blas, Santiago, or Wanchaq.
For expats who live like locals rather than tourists, Cusco is remarkably affordable.
| Category | Budget | Mid-Range | Comfortable |
|---|---|---|---|
| Rent (1BR apartment) | $200-$300 | $300-$500 | $500-$800 |
| Rent (2BR apartment) | $300-$450 | $450-$700 | $700-$1,100 |
| Groceries | $120-$170 | $170-$250 | $250-$350 |
| Dining out | $40-$80 | $80-$150 | $150-$300 |
| Transportation | $20-$35 | $35-$60 | $60-$120 |
| Utilities | $40-$60 | $60-$90 | $90-$140 |
| Health insurance | $100-$150 | $150-$250 | $250-$400 |
| Entertainment | $40-$80 | $80-$150 | $150-$300 |
| Monthly Total | $560-$875 | $875-$1,550 | $1,650-$3,110 |
Key Cusco notes:
- Heating is a real expense. Cusco nights drop to 0-5°C (32-41°F) in winter. Budget for electric heaters or choose an apartment with good insulation.
- The altitude (3,400m) means some produce and imported goods cost more due to transport.
- The Sacred Valley towns of Ollantaytambo, Pisac, and Urubamba offer lower rents and warmer weather at a lower altitude.
Arequipa
Arequipa is the sweet spot for many expats: a major city with excellent infrastructure, 300+ days of sunshine, moderate altitude (2,335m), and costs lower than Lima.
| Category | Budget | Mid-Range | Comfortable |
|---|---|---|---|
| Rent (1BR apartment) | $200-$300 | $300-$500 | $500-$750 |
| Rent (2BR apartment) | $300-$400 | $400-$650 | $650-$1,000 |
| Groceries | $120-$170 | $170-$240 | $240-$350 |
| Dining out | $40-$70 | $70-$130 | $130-$250 |
| Transportation | $20-$30 | $30-$50 | $50-$100 |
| Utilities | $40-$60 | $60-$90 | $90-$130 |
| Health insurance | $100-$150 | $150-$250 | $250-$400 |
| Entertainment | $40-$70 | $70-$130 | $130-$250 |
| Monthly Total | $560-$850 | $850-$1,440 | $1,540-$2,830 |
Key Arequipa notes:
- The Cayma and Yanahuara districts are popular with expats and offer excellent restaurants and parks.
- Arequipa's food scene is legendary. Picanterías (traditional restaurants) serve massive portions for $3-$6.
- Private hospitals like Clínica San Juan de Dios and AUNA provide quality care at reasonable prices.
Trujillo
Trujillo is Peru's most underrated city for expat living. Located on the northern coast, it offers warm weather year-round, extremely low costs, and a genuine Peruvian lifestyle far from the tourist circuit.
| Category | Budget | Mid-Range | Comfortable |
|---|---|---|---|
| Rent (1BR apartment) | $150-$250 | $250-$400 | $400-$600 |
| Rent (2BR apartment) | $250-$350 | $350-$550 | $550-$850 |
| Groceries | $100-$150 | $150-$200 | $200-$300 |
| Dining out | $30-$60 | $60-$100 | $100-$200 |
| Transportation | $15-$25 | $25-$40 | $40-$80 |
| Utilities | $35-$55 | $55-$80 | $80-$120 |
| Health insurance | $100-$150 | $150-$250 | $250-$400 |
| Entertainment | $30-$60 | $60-$100 | $100-$200 |
| Monthly Total | $460-$750 | $750-$1,220 | $1,220-$2,350 |
Key Trujillo notes:
- The beach district of Huanchaco (15 minutes from downtown) is popular with surfers and offers beachfront living at very low prices.
- Trujillo's mercado central is one of the cheapest in Peru for fresh produce, seafood, and meat.
- English-speaking services are limited. Basic Spanish is more important here than in Lima or Cusco.
Category Deep Dives
Rent
Rent is your biggest expense in Peru, but it is a fraction of what you would pay in comparable cities abroad. Important details:
- Furnished apartments are widely available, especially in expat-popular areas. Expect a 20-30% premium over unfurnished.
- Lease terms are typically one year, but 6-month leases are negotiable, especially with furnished units.
- Deposits are usually one or two months' rent.
- Airbnb arbitrage: Many expats start on Airbnb ($30-$60/night in Lima) while apartment hunting. Monthly Airbnb rentals offer discounts of 30-50%.
Food and Groceries
Peru's food scene is world-renowned, and the local ingredients are incredible. Eating well on a budget is easy:
- Local markets (mercados): A week's produce for $10-$20
- Supermarkets (Wong, Metro, Plaza Vea): 30-50% more expensive than markets but offer imported goods
- Street food: Complete meals for $1-$3
- Menú del día: Set lunch at local restaurants for $2-$4
- Mid-range restaurant: Dinner for two with drinks, $20-$40
- Fine dining: Lima's world-class restaurants (Central, Maido) run $100-$200 per person, but everyday fine dining is $30-$50
Transportation
Peru's transportation is cheap but chaotic:
- Local buses (combis): $0.25-$0.50 per ride
- Metropolitano (Lima): $0.40 per ride, fast and reliable
- Uber/InDriver: $2-$5 for most urban trips
- Taxis: Negotiate before entering. Lima rides rarely exceed $5-$10
- Inter-city buses: Lima to Cusco (22 hours) is $20-$60 depending on class
- Domestic flights: Lima to Cusco or Arequipa from $40-$100 one way with LATAM, Sky, or JetSmart
- Car ownership: Not recommended in Lima. Useful in smaller cities. Gasoline is approximately $4.50/gallon
Utilities
Utility costs in Peru are very reasonable:
- Electricity: $30-$60/month (higher with AC or electric heating)
- Water: $10-$20/month
- Internet: $20-$35/month for 100+ Mbps fiber (Movistar, Claro, Entel)
- Mobile phone: $10-$20/month for unlimited data plans
- Gas (cooking): $5-$10/month for a gas balloon
Healthcare
Healthcare costs deserve special attention because they represent some of the biggest savings for Americans:
| Service | US Cost | Peru Cost |
|---|---|---|
| Doctor visit (GP) | $150-$300 | $20-$50 |
| Specialist visit | $250-$500 | $40-$80 |
| Dental cleaning | $100-$300 | $30-$50 |
| Root canal | $800-$1,500 | $100-$200 |
| MRI scan | $1,000-$3,000 | $150-$300 |
| Prescription (generic) | $20-$100 | $3-$20 |
| Emergency room visit | $1,500-$5,000 | $50-$200 |
Private health insurance for expats runs $100-$400/month depending on age and coverage level. Many expats over 65 find it more economical to pay out of pocket for routine care and carry catastrophic coverage only.
Hidden Costs to Budget For
Every expat budget has hidden costs. Account for these:
- Visa fees and renewals: $200-$500/year including attorney fees
- International transfers: Bank wire fees and exchange rate spreads cost 1-3% per transfer. Use Wise (TransferWise) to minimize this.
- Home country obligations: US tax filing ($200-$500/year for expat-specialized accountants), maintaining a US address, mail forwarding
- Travel: Flights home once or twice a year ($400-$800 round trip from Lima to US)
- Furnishing an apartment: $1,000-$3,000 one-time cost if renting unfurnished
- Earthquake insurance: Peru is seismically active. Renters insurance is cheap ($10-$20/month) and worth having.
The Bottom Line: What Does It Actually Cost?
For a single expat living a comfortable mid-range lifestyle:
| City | Monthly Budget |
|---|---|
| Lima (Miraflores) | $1,200-$1,800 |
| Cusco | $900-$1,500 |
| Arequipa | $900-$1,400 |
| Trujillo | $750-$1,200 |
For a couple, add approximately 40-60% to these figures (you share rent and utilities but double food and personal expenses).
These numbers make Peru one of the most compelling destinations in the world for anyone seeking a high quality of life at a fraction of Western prices. Whether you are on a fixed retirement income or simply want your money to go further, Peru delivers.
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