Planning your travel budget is one of the most important parts of preparing for a trip to Peru. Fortunately, managing money here is straightforward once you understand how payments work, when to carry cash and where credit cards are accepted.
Whether you’re exploring the streets of Lima, hiking to Machu Picchu, visiting local markets in the Sacred Valley or enjoying the Amazon rainforest, knowing how to handle your money will make your trip smoother, safer and far more enjoyable.
This guide covers everything you need to know about currency, cash, credit cards, ATMs, tipping and everyday travel expenses in Peru.
What Currency Is Used in Peru?
The official currency of Peru is the Peruvian Sol (PEN).
You’ll usually see prices written as:
S/ 120
or simply:
120 soles
Peruvian banknotes come in denominations of 10, 20, 50, 100 and 200 soles, while coins range from 10 céntimos to 5 soles.
Although US dollars are accepted in some hotels, travel agencies and larger businesses, everyday purchases are almost always made in Peruvian soles.
For that reason, it’s always a good idea to keep some local currency with you.
Can I Use US Dollars in Peru?
Yes—but not everywhere.
Hotels, some upscale restaurants and many tour operators may accept US dollars, particularly in popular destinations such as Lima, Cusco and Arequipa.
However, if you’re shopping in local markets, paying for taxis, buying snacks or visiting smaller towns, you’ll almost always need Peruvian soles.
If you decide to bring US dollars, make sure the bills are clean and in excellent condition. Torn, heavily creased or marked notes are often refused by banks and exchange offices.
Smaller denominations such as US$20 and US$50 are also much easier to exchange than large bills.
Should I Bring Cash or Credit Cards?
The best approach is to use both.
Credit cards are widely accepted in hotels, quality restaurants, shopping centres and established tourism businesses.
Cash, however, remains essential for:
- Local markets
- Small family-run restaurants
- Taxis
- Street food
- Small shops
- Public restrooms
- Tips for guides, drivers and hotel staff
You don’t need to carry large amounts of cash, but having enough soles for daily expenses is always recommended.
Where Should I Exchange Money?
One of the questions we’re asked most often is whether travelers should exchange money before arriving in Peru.
Our advice is simple:
- Exchange only a small amount at the airport if necessary.
- Airport exchange counters are convenient but rarely offer the best rates.
- Exchange money at reputable exchange houses in the city, where rates are generally better.
- Banks are another safe option, although the process may be slower.
- ATMs are also a convenient way to withdraw Peruvian soles directly.
Using ATMs in Peru
ATMs are easy to find in major tourist destinations, including:
- Lima
- Cusco
- Arequipa
- Puno
- Trujillo
- Chiclayo
- Iquitos
Visa and Mastercard are widely accepted, while American Express may be accepted less frequently.
Before traveling, check with your bank regarding international withdrawal fees and daily limits.
When using an ATM, choose machines located inside banks, shopping centres or busy commercial areas rather than isolated locations.
Can I Pay by Credit Card?
Yes.
Most hotels, quality restaurants, museums and tour operators accept major international credit cards.
Visa and Mastercard are by far the most commonly accepted.
However, don’t assume every business accepts cards.
Many family-owned restaurants, artisan markets and smaller shops still operate on a cash-only basis.
Some businesses may also apply a small surcharge for card payments.
Is Peru Expensive?
Peru offers excellent value for money compared to many destinations in North America and Europe.
Luxury hotels, fine dining and exclusive experiences are available, but so are affordable restaurants, comfortable hotels and excellent public transportation.
Your daily budget will depend largely on your travel style.
Backpackers can travel comfortably on a modest budget, while travelers looking for boutique hotels, private guides and premium experiences will naturally spend more.
One of the advantages of Peru is that it’s possible to enjoy an exceptional travel experience across a wide range of budgets.
If you’re planning a tailor-made journey, our Peru tours combine carefully selected hotels, professional guides and seamless transportation, allowing you to enjoy excellent value while making the most of your time in the country.
How Much Cash Should I Carry?
Less than many travelers expect.
For most visitors, carrying enough cash for daily purchases while paying larger expenses by card is the safest and most practical approach.
Hotels, domestic flights and organized tours are usually paid in advance, meaning you’ll mainly need cash for:
- Meals
- Souvenirs
- Small purchases
- Tips
- Local transportation
Avoid carrying all your money in one place.
Keep a backup credit card in your hotel safe whenever possible.
Tipping in Peru
Tipping is appreciated throughout Peru, although it’s generally discretionary rather than mandatory.
As a general guideline:
- Restaurants: Around 10% if a service charge hasn’t already been included.
- Local guides: Tipping is appreciated for excellent service.
- Drivers: A small tip is customary on private tours.
- Hotel porters: A few soles per bag is common.
- Housekeeping: A small daily tip is always appreciated.
If you’re traveling on a multi-day itinerary with guides and drivers, many visitors choose to tip at the end of the journey as a way of recognizing outstanding service.
PeruAgency Local Insight
One of the biggest misconceptions about traveling in Peru is that you need to carry large amounts of cash.
In reality, you don’t.
Most hotels, restaurants and established tourism businesses accept credit cards, while a modest amount of Peruvian soles is usually enough for taxis, local markets, cafés and personal expenses.
After helping travelers explore Peru for many years, we’ve found that the simplest approach is also the safest: use your credit card for larger purchases, keep some local currency for everyday expenses and avoid carrying more cash than you need.
Common Money Mistakes to Avoid
- ❌ Exchanging all your money at the airport
- ❌ Bringing damaged or old US dollar bills
- ❌ Assuming every business accepts credit cards
- ❌ Carrying all your cash in one wallet
- ❌ Forgetting to keep small banknotes for tips and local purchases
- ❌ Waiting until you’re in a remote destination to withdraw cash
Frequently Asked Questions
Can I use US dollars in Peru?
Yes, but Peruvian soles are the preferred currency for everyday purchases.
Are ATMs easy to find?
Yes. All major tourist destinations have reliable ATM networks.
Should I exchange money before arriving?
Only if it’s convenient. Most travelers exchange money after arriving in Peru.
Is cash still necessary?
Yes. While cards are widely accepted, cash is still useful for markets, taxis, small restaurants and tips.
Is Peru expensive?
Peru offers excellent value for money, with options ranging from budget-friendly travel to luxury experiences.
How Much Does a Trip to Peru Cost?
One of the questions we hear most often is:
“How much money should I budget for Peru?”
The answer depends on the kind of trip you’re planning.
Peru can be surprisingly affordable for independent travelers, but it also offers world-class luxury experiences, boutique hotels, private guides and exclusive journeys for those looking for a more personalized adventure.
The good news is that Peru offers excellent value for money across every budget.
Whether you’re planning a backpacking adventure, a family vacation or a tailor-made itinerary, it’s possible to experience the country’s incredible landscapes, culture and cuisine without overspending.
What Will You Spend Money On?
Your travel budget will usually be divided into a few main categories:
- Accommodation
- Domestic flights
- Transportation
- Food and drinks
- Entrance tickets
- Guided tours
- Personal expenses and shopping
How much you spend on each category depends on your travel style and the destinations you choose to visit.
For example, a journey that includes Lima, Cusco, the Sacred Valley and Machu Picchu will naturally cost more than a shorter city break because it involves domestic flights, entrance tickets and additional transportation.
Budget Travel in Peru
Peru remains one of South America’s best destinations for travelers on a budget.
Hostels are available in every major tourist destination, local restaurants offer excellent meals at affordable prices and public transportation connects most regions of the country.
Independent travelers who are comfortable organizing their own accommodation and transportation can explore Peru without spending a fortune.
That said, some experiences—particularly Machu Picchu, the Inca Trail and the Amazon—require advance planning and should never be considered last-minute destinations.
Mid-Range Travel
This is where many international visitors fall.
A mid-range trip usually includes:
- Comfortable hotels
- Private airport transfers
- Domestic flights
- Professionally guided excursions
- A mix of local restaurants and fine dining
For many travelers, this offers the best balance between comfort, convenience and value.
It’s also a style of travel well suited to first-time visitors because it allows you to focus more on enjoying the experience rather than managing logistics.
Luxury Travel in Peru
Peru has become one of South America’s leading luxury destinations.
Boutique hotels overlooking the Sacred Valley, exclusive Amazon lodges, luxury trains to Machu Picchu, private archaeological tours and world-renowned restaurants have transformed Peru into an exceptional destination for discerning travelers.
Luxury travel here isn’t just about five-star accommodation—it’s about enjoying exclusive access, personalized service and unique experiences that aren’t available through standard itineraries.
What Makes a Trip More Expensive?
Several factors have a greater impact on your budget than travelers often expect.
Domestic flights can vary significantly depending on the season and how far in advance they’re booked.
Entrance tickets to Machu Picchu and other popular attractions are limited and should be reserved well before your trip.
Traveling during major holidays or the peak dry season may also increase accommodation prices, particularly in Cusco and the Sacred Valley.
Choosing private transportation instead of public buses, or staying in boutique hotels rather than standard accommodation, will naturally increase your overall budget—but it can also offer greater flexibility and comfort.
Is a Guided Tour Worth It?
Many travelers initially consider organizing everything themselves.
For shorter trips, that can work well.
However, once your itinerary includes multiple destinations, domestic flights, train tickets, entrance permits and private transfers, planning quickly becomes more complex.
A professionally designed itinerary can save time, avoid unnecessary stress and help you make the most of your vacation.
Rather than worrying about transportation schedules or ticket availability, you can focus on enjoying Peru’s landscapes and cultural experiences.
If you’re looking for a seamless travel experience, our tailor-made Peru tours are designed to handle every detail—from accommodation and transportation to expert local guides.
PeruAgency Local Insight
One mistake we see quite often is travelers trying to save money on the parts of the trip that matter most.
Choosing the cheapest transportation, booking hotels purely on price or leaving Machu Picchu tickets until the last minute may reduce costs initially, but it can also lead to unnecessary stress or missed opportunities.
Our advice is simple: invest in the experiences you’ll remember for a lifetime, and save on the things that won’t define your journey.
Common Budget Mistakes
- ❌ Booking Machu Picchu tickets too late
- ❌ Underestimating travel distances between destinations
- ❌ Choosing the cheapest option without considering comfort or reliability
- ❌ Forgetting to budget for tips, personal expenses and souvenirs
- ❌ Trying to visit too many places in a short period of time
Frequently Asked Questions About Travel Costs
Is Peru expensive compared to other South American countries?
Peru offers excellent value for money and is generally considered one of the better-value destinations in South America, especially compared with destinations such as Chile or Uruguay.
What’s the biggest travel expense?
For most visitors, the largest expenses are international flights, domestic flights and visits to Machu Picchu.
Can I travel on a budget?
Absolutely. Peru is well suited to budget travelers, although planning ahead is important for popular attractions.
Is a private tour worth the extra cost?
If your time is limited or you’re visiting several destinations, many travelers find that a well-planned private itinerary offers a strong balance of comfort, efficiency and overall value.
Planning Your Travel Budget
Every trip to Peru is different, and the amount you’ll spend depends on how long you stay, the destinations you visit and your preferred style of travel.
To help you plan with confidence, we’ve created detailed budget guides for some of the most popular itineraries:
- How Much Money Do You Need for 7 Days in Peru?
- How Much Money Do You Need for 10 Days in Peru?
- How Much Money Do You Need for 14 Days in Peru?
Each guide breaks down typical costs for accommodation, transportation, meals, entrance tickets and guided tours, giving travelers a realistic idea of what to expect before traveling.
If you’re still deciding on your itinerary, you may also like to explore our collection of Peru tours, where you’ll find journeys for different travel styles—from classic highlights to fully customized private adventures.
