Cost of living in Ethiopia
Average monthly spending, by standard of living, by category, and against other countries
Monthly cost
ETB 8,520
what a typical person spends
Spending by standard of living
ETB 4,100richest 20%
ETB 19,600
What makes Ethiopia inexpensive starts close to home: it grows and does so much for itself that food and labor both stay cheap. The exception is housing, which in Addis Ababa runs surprisingly steep against everything else. Worth noting too is how even the picture is — what a comfortable life costs and what a tight one costs aren't far apart, since most people get by on similar modest means.
Where people spend money in Ethiopia
Most of a typical month here goes to feeding the household and keeping a roof over it, with the rest spent on the everyday bits of running a home. Rent is the cost you can't really negotiate down — it leads the budget and tends to stay put — while groceries leave you more room to spend up or pull back. For someone moving in, housing is the thing to settle first.
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What it costs to live in Ethiopia
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Cost of living in Ethiopia
ETB 4,100/mo
vs ETB 126,000 in your country
Take-home
ETB 8,080
vs ETB 189,000 in your country
Potential savings
ETB 3,980
more than in your country
Standard of living
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How living costs in Ethiopia compare
Set against the rest of the world, Ethiopia lands among the least expensive places you could move to, and even by the standards of its own continent it comes in on the cheaper side. A good part of that is the birr and the low wages behind it — when local incomes are modest, prices settle to match, and a visitor's money goes a long way.
Data source: household consumption 2024 (World Bank), International Comparison Program 2021 (World Bank), category breakdown 2018 (United Nations Statistics Division), adjusted to 2026 using IMF GDP-per-capita growth
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Frequently asked questions
What is the cost of living in Ethiopia?
A typical person in Ethiopia spends about ETB 8,520 a month — around ETB 102,000 a year — on housing, groceries, transport and other everyday costs. It's a nationwide average across different regions, cities and types of housing.
What is the cost of living in Ethiopia in US dollars?
The cost of living in Ethiopia is about $54 a month, or roughly $648 a year per person.
How much money do you need to live comfortably in Ethiopia?
It all depends on your standard of living. A modest budget runs about ETB 4,100 a month per person, a typical one around ETB 8,520, and a comfortable life around ETB 11,000. In big cities and for a family, costs are usually higher.
What do people spend the most on in Ethiopia?
The biggest expense is groceries, at about ETB 3,630 a month (43% of spending). Then come housing (ETB 2,210, 25%) and dining out (ETB 473, 5%).
Is the average salary in Ethiopia enough to live on?
Yes, with room to spare. Average spending is about ETB 8,520 a month, while the average take-home pay in Ethiopia is about ETB 13,900. For more on incomes, see salaries in Ethiopia.
Is Ethiopia an expensive country to live in?
No. Ethiopia is more expensive than 9% of countries worldwide and ranks 37th of 53 in Africa by cost of living.
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Living in Ethiopia
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