Visiting Madeira on a budget isn’t always easy, but with the right planning and a few smart choices, it’s absolutely doable.
A standard budget for Madeira sits around €300 per day for a luxury trip or €100 – €150 per day for a standard, comfortable holiday.
The good news is that you can bring your budget down to just €60 – €90 per day, using a few tips and tricks that I’ve picked up over three visits.
One golden rule: book in advance to visit Madeira on a budget. Madeira is a popular island, so backpacker hostels and budget-friendly accommodation quickly get booked up.
Let’s get into it, starting with quick, actionable Madeira travel tips, followed by where to stay, whether you should explore by car or public transport, and how to hike, explore and eat on the cheap.
Disclosure: This post may include affiliate links. If you decide to click through and make a qualifying purchase, I will receive a small commission at no extra cost to you – thanks for your support.
Quick Tips for Visiting Madeira on a Budget
- Stay on the south coast (ideally Funchal), where the public transport is cheap and most reliable.
- Avoid June to August. Spring, autumn and winter bring lower prices and better availability.
- Find accommodation with a kitchen. Eating out is expensive, so self-catering saves big money.
- Skip pricey hiking tours. If you’re a competent hiker, you can use apps like AllTrails to hike.
- Book early. Flights and accommodation sell out months/weeks in advance.
- Travel with friends. Splitting car rental costs makes exploring cheaper.
- Rely on public transport. It’s the smartest choice and means you can reserve money to splurge on a few must-sees that aren’t served by buses.
Where to Stay in Madeira on a Budget
Location is everything. Public transport in Madeira is only really reliable on the south coast, particularly in Funchal.
This is my top tip: stay in Funchal. Around 90% of the island’s population lives in the capital, which makes it far better connected than the north, east, or west.
Plus, most tours and transfers only include hotel pick-up in Funchal. Therefore, to avoid expensive last-minute taxis to the pick-up zone, it’s best stay in Funchal.
From Funchal, you can reach all three of the best Madeira natural pools, some hiking trails and the Nun’s Valley (Curral das Freiras) by bus.
Valley of the Nuns
There is also a cable car (and buses) running to Monte Palace.
Major supermarkets (Continente and Pingo Doce) and local markets are also accessible on foot, helping with self-catering.
Are There Hostels in Madeira?
Hostels are still a relatively new concept in Madeira. For years, the island mainly attracted retirees. It began to attract a younger, budget-conscious crowd when hikes like the PR1 (Pico do Arieiro to Pico Ruivo) went viral on social media.
PR1 hike
Therefore, the hostel scene is still very small. There’s one main chain, Jaca Hostel, which features the Jaca Hostel in Funchal and Jaca Hostel in Porto da Cruz.
Porto da Cruz (from Vereda do Larano)
Porto da Cruz is a stunning location with a pebble beach and access to some of my favourite hikes (Eagle Rock and Vereda do Larano). However, its transport options are limited, so you ideally need to rent a car (or carpool with other guests).
One of my favourite places for a budget stay in Funchal city centre is A Ver O Mar.
My stay at A Ver o Mar
It’s geared up for digital nomads, with a large co-working space, kitchen and rooftop, but it offers a shared twin room (hostel-style). I have stayed there twice now, and would re-visit in a heartbeat.
The Best Hostels in Madeira
Jaca Hostel Funchal (£££)
Jaca Hostel Porto da Cruz (£££)
A Ver O Mar, Funchal (£££)
I stayed here!
Public Transport vs Car Rental: Which is Better on the Budget?
If you’re visiting Madeira on a budget, one of the main decisions you’ll need to make is whether to rent a car.
The advantages of using public transport is that it’s cheap. Taking a bus instead of a tour can save you $30+ per day.
However, public transport in Madeira is, frankly, not the most reliable. Outside of Funchal, coverage is patchy, and the buses don’t always arrive on time.
Unless you visit the bus stop in person, it’s hard to find the up-to-date timetables. Google Maps doesn’t provide live coverage of buses in Madeira, except for a few main routes in Funchal.
Many hikes in Madeira are also not accessible by public transport – or the route is long and buses irregular – so you’re left with just two options: take a tour or rent a car.
In this scenario, renting a car can actually save you a lot of money, especially if you split the cost between friends.
Most tours and transfers cost €30 – 60 per person. Meanwhile, a one-day car rental for a small car starts at €35 per day – and the car can usually fit up to five people.
Remember, you don’t need to rent a car every day.
You don’t necessarily need to rent a car for your entire stay. On my first week in Madeira, I explored widely by public transport and a couple of well-picked tours.
You can see exactly what I got up to in my full guide to visiting Madeira without a car, but I went whale-watching and hiking, and visited places like the Valley of the Nuns by bus.
At the very end of my stay, I rented a car for one day and split the costs with a friend. We started the drive early, and ticked off Ponta do Sol, Seixal, Porto Moniz and several viewpoints.
Free and Cheap Activities in Madeira
There are lots of free and cheap activities that you can do from Funchal.
Here’s a quick look:
- Take the bus to Machico to hike Pico do Facho and relax at the sandy beach.
- Take the bus to Curral das Freiras (Nun’s Valley) to hike down from the Eira do Serrado viewpoint.
- Unwind at Doca Do Cavacas. Funchal’s volcanic pools. Entry is €5,50 for adults.
- Take the bus to the fishing village, Camara de Lobos, for a delicious sardine lunch.
- Walk the levada from Jasmin Tea House (accessible by bus) to Monte Palace.
- Try the local poncha and espetada at restaurants in Funchal: Rei da Poncha and O Visconde are good choices.
Pico do Facho, Machico
Funchal natural pools
Nun’s Valley
Camara de Lobos
What’s worth paying extra for?
The key to visiting Madeira on a budget is knowing when to spend a little more, and when to hold back.
After spending 5+ months in Madeira, I can confidently say that these three must-sees (not accessible by public transport) are worth paying extra for.
Remember to check the up-to-date list of trail closures in Madeira before you go hiking in Madeira.
1. PR1 (Pico do Areiro to Pico Ruivo)
The PR1 (Pico do Areiro to Pico Ruivo) is undoubtedly the most famous hike in Madeira, and honestly, it’s worth the hype.
The trail extends between the two highest peaks in Madeira and overlooks chiselled green mountains. It’s spectacular, challenging, and well worth the trip.
The trail is not accessible by public transport. Therefore, many people rent a car and self-drive. The problem with this is that it’s a point-to-point trail. Walking back to the car doubles your hike, taking 8 – 10 hours instead of 4 – 5.
Instead, it’s best to take either a guided tour (€46 per person) or a PR1 hike transfer (€32 per person). The latter will drop you off at the trailhead and pick you up near the end of the trail.
2. Whale-watching tour from Funchal
I took the Magic Dolphin catamaran tour (€35 per person) on my first week in Madeira, and it remains one of my favourite experiences in Madeira to date.
I saw handfuls of pilot whales and a pod of bottlenose dolphins, but if you’re even luckier than me, you can spot other whale species such as sperm whales and Bryde’s whales
3. Vereda do Larano
Vereda do Larano is a coastal trail that, honestly, doesn’t get enough attention. Hugging the east coast of Madeira, the hike has views over Porto da Cruz and São Lourenço.
It will show you a different side of Madeira than the PR1: dramatic cliffs and crashing sea. I’d say it’s better than Vereda da Ponta de São Lourenço, which is the best-known coastal trail in Madeira.
You’ll need to time your visit right. Vereda do Larano features on the popular hiking trip with a local (€65 per person), but it’s offered on Tuesdays only.
How to Hike in Madeira on a Budget
Hiking in Madeira on a budget is difficult, but possible.
As I explain in my guide to hiking in Madeira without a car, some trails can be reached by bus (Eira do Serrado to the Valley of the Nuns, for example).
However, the majority of the trails in Madeira (including the PR1 and Ponta de São Lourenço) are not accessible by public transport, so you are left with three options:
- Rent a car (from €35 per day, plus fuel). Renting a car is often cheaper than taking a tour/transfer, even with fuel costs. You can split the costs with friends/family.
- Hike transfer (€35-45 per person). Self-guided tours are cheaper than guided tours. You get to hike independently.
- Group tour (€45-65 per person). If you’re not a confident hiker, it’s worth paying a bit more for a guided group tour.
How to Eat Well For Less
One of the best ways to save money in Madeira is to cater for yourself. A sandwich in Madeira costs €4.50 – €6, whereas a main meal will cost €10 – €20 per person (or more, if you order a lot of food).
Therefore, if you eat out every meal, you can expect to spend €40+ per day, per person.
In comparison, a week’s groceries for one person should cost €60 – €100 per week (€8.50 – €14) per day. That’s a significant difference!
A picnic I made at my accommodation, Granny’s Farm Madeira
You can easily grab groceries from big supermarkets (Continente and Pingo Doce), then cook for yourself at your apartment or hostel.
Fresh fruit is often cheaper at local markets, but beware of scams at Mercado dos Lavradores (the farmer’s market in Funchal), as they often charge extortionate prices for tourists.
How Much Should You Budget?
If you’re visiting Madeira on a budget, and you plan to self-cater, you can expect to spend around €60 – €90 per day. For a one-week trip, that’s around €420 – €630.
Here’s an example budget, which includes 2-3 meals out:
| Outgoings | Average cost (per week) |
|---|---|
| Budget acommodation | €290 – €420 |
| One week’s groceries | €60 – €100 |
| 2 – 3 meals out | €30 – €60 |
| One-day car rental | €35 – €50 |
| Bus tickets (x4 returns) | €8 – €11 |
| Whale-watching tour | €35 |
| Pico to Pico hike transfer | €33 |
| TOTAL COST | €490 – €709 |
I hope you found my guide to visiting Madeira on a budget useful!
Leave a comment below if you have any questions or if you’d like to share your own suggestions on how to keep your Madeira trip cheap.