20-Day Ultimate Peru Budget Backpacking Route
Peru is a backpacker's paradise where ancient history meets vibrant street culture. Navigating this diverse country on a lean budget of $15 a day is entirely possible if you embrace local 'menu del dia' lunches, stay in social hostel dorms, and utilize the extensive network of intercity buses.
This itinerary takes you from the misty coast of Lima through the white volcanic streets of Arequipa, culminating in a budget-friendly trek to the legendary ruins of Machu Picchu. Prepare for high altitudes, breathtaking landscapes, and the most authentic travel experience of your life.
The Itinerary
Day 1: Lima, Peru - Arrival & Miraflores Vibe
Arrival at Jorge Chávez International Airport
Clear customs and skip the expensive taxis. Take the Airport Express Lima bus for a fraction of the cost to reach the Miraflores district.
Lunch at Mercado Surquillo No. 1
Head to the local market for a 'menu del dia'—a two-course meal featuring ceviche or lomo saltado for under $3.
Stroll through Parque del Amor
Enjoy the free coastal views of the Pacific Ocean and the colorful mosaic walls inspired by Gaudi.
Huaca Pucllana Exterior View
Walk around the perimeter of this massive pre-Incan adobe pyramid. It’s beautifully lit at night and free to view from the street.
Day 2: Lima, Peru - Historic Center & Street Food
Free Walking Tour Lima
Join a tip-based walking tour starting at Plaza de Armas to see the Government Palace and the Cathedral.
Churros at San Francisco
Grab a giant, warm manjar-blanco filled churro near the San Francisco Convent for less than a dollar.
Catacombs of San Francisco
Pay a small entry fee to explore the underground ossuaries containing the remains of 70,000 people.
Magic Water Circuit
Visit the Parque de la Reserva for a world-record fountain light show. It is incredibly cheap and visually stunning.
Day 3: Paracas, Peru - The Coastal Escape
Bus to Paracas
Take a comfortable 4-hour public bus south from Lima. Watch the desert landscape meet the ocean.
Check into El Chaco Hostel
Drop your bags in the small fishing village of Paracas, the gateway to the 'Poor Man's Galapagos'.
Bike the Paracas National Reserve
Rent a cheap bicycle and pedal into the desert reserve to see the red sand beaches and dramatic cliffs.
Sunset at the Pier
Watch the fishing boats return as the sky turns orange. Many local stalls sell cheap empanadas here.
Day 4: Huacachina, Peru - Desert Oasis
Ballestas Islands Boat Tour
Take a budget boat trip to see penguins, sea lions, and the mysterious Candelabra geoglyph.
Local Bus to Ica
Take a 'colectivo' or local bus to the city of Ica, then a short $1 mototaxi to the Huacachina oasis.
Sandboarding the Great Dunes
Hike up the massive dunes for free or join a budget buggy tour to slide down the golden slopes.
Oasis Nightlife
Enjoy the social atmosphere of the hostels surrounding the lagoon. Many offer free pisco sour demos.
Day 5: Huacachina & Night Bus - Heading South
Vineyard Walk
Take a local taxi to a nearby 'Bodega' to learn about Pisco production for a very small fee.
Lunch in Ica Market
Escape the tourist prices of the oasis and eat with locals in the Ica city market for $2.
Relax by the Lagoon
Catch up on reading or journaling by the water before the long journey ahead.
Overnight Bus to Arequipa
Board a 'cama' (sleeper) bus. This saves you the cost of a night's accommodation while moving you 12 hours south.
Day 6: Arequipa, Peru - The White City
Arrival & Coca Tea
Arrive in Arequipa (2,335m). Drink coca tea immediately to help your body adjust to the rising altitude.
Plaza de Armas Exploration
Admire the stunning colonial architecture made of 'sillar' (white volcanic stone).
Mercado San Camilo
Designed by Gustave Eiffel, this market is the best place for cheap fruit juices and local snacks.
Yanahuara Viewpoint
Walk to this suburb for the classic photo of El Misti volcano framed by colonial arches.
Day 7: Arequipa, Peru - Monasteries & Culture
Santa Catalina Monastery (Exterior)
While the inside is beautiful, the exterior walls and surrounding streets offer incredible photo ops for free.
Rocoto Relleno Lunch
Try Arequipa’s signature spicy stuffed pepper at a local 'Picanteria'—cheaper than main square restaurants.
Mundo Alpaca
A free mini-museum where you can see live alpacas and llamas and learn about traditional weaving.
Sunset Rooftop Drinks
Many hostels have rooftops with views of the volcanoes. Grab a local Arequipeña beer and enjoy the view.
Day 8: Arequipa to Cusco - Crossing the Andes
Bus Terminal Transfer
Take a final look at the White City before heading to the terminal for the 10-hour ride to Cusco.
On-Board Lunch
Most long-distance buses include a basic meal, but bring snacks from the market to stay on budget.
Arrival in Cusco
The Incan capital sits at 3,400m. Take it slow. Take a cheap taxi to your hostel in the San Blas district.
Altitude Acclimatization
Rest is your best friend tonight. Sip water and avoid heavy meals as you adjust to the thin air.
Day 9: Cusco, Peru - The Incan Capital
San Blas Neighborhood
Wander the narrow cobblestone streets of the artisan quarter. It’s the most picturesque part of the city.
San Pedro Market
Eat a $2 lunch at the food stalls. The 'Sopa de Pollo' (Chicken Soup) is legendary among backpackers.
Twelve-Angled Stone
Locate this marvel of Incan masonry on Hatun Rumiyoc street—totally free and mind-blowing.
Plaza de Armas at Night
Sit on the cathedral steps and soak in the atmosphere of one of the world's most beautiful squares.
Day 10: Cusco, Peru - Sacsayhuamán Hike
Uphill Walk to Cristo Blanco
Save money on a taxi and hike up to the white statue of Christ for the best free panoramic view of Cusco.
Sacsayhuamán Perimeter
Explore the outskirts of this massive fortress. You can see many of the large stones without entering the paid zone.
San Cristobal Church
Another great viewpoint. The plaza in front of the church is a perfect spot for a cheap picnic.
Coca Museum
Learn about the history and traditional uses of the coca leaf in Andean culture.
Day 11: Sacred Valley, Peru - Pisac Market Day
Colectivo to Pisac
Catch a local shared van (colectivo) from Calle Puputi. It’s fast, local, and extremely cheap.
Pisac Sunday Market
Even if it's not Sunday, the market is vibrant. Buy high-quality local textiles for a fraction of Cusco prices.
Hike to Pisac Ruins
If you have the tourist ticket, hike up from the town for an incredible view of the Incan terraces.
Return to Cusco
Hop back on a colectivo. The ride through the valley as the sun sets is unforgettable.
Day 12: Sacred Valley, Peru - Maras & Moray
Bus to Urubamba
Take a public bus toward Urubamba, the heart of the Sacred Valley.
Salineras de Maras
Take a mototaxi to the salt mines. Thousands of individual salt pans have been used since Incan times.
Moray Concentric Terraces
Visit the agricultural laboratory of the Incas where temperatures vary significantly between levels.
Stay in Ollantaytambo
Check into a hostel in this 'living Incan town' to prepare for the journey to Machu Picchu.
Day 13: Ollantaytambo, Peru - The Fortress Town
Ollantaytambo Ruins
Explore the massive sun temple and the steep terraces overlooking the town.
Pinkuylluna Storehouses
Hike the free trail opposite the main ruins to see the Incan granaries and enjoy a free view of the town.
Cobblestone Wandering
Explore the original Incan street plan and water channels that still run through the town.
Backpacker Meetup
Ollantaytambo is a hub for hikers. Exchange tips for the 'backdoor' route to Machu Picchu.
Day 14: Santa Teresa, Peru - The Jungle Route
Colectivo to Santa Maria
Start the 'Backdoor' route. This is the budget alternative to the expensive train.
Shared Van to Santa Teresa
Winding roads lead you from high mountains into the lush high jungle.
Cocalmayo Hot Springs
Relax in the most beautiful natural hot springs in Peru for just a few dollars.
Jungle Dinner
Enjoy fresh tropical fruits and cheap local coffee grown right in the valley.
Day 15: Aguas Calientes, Peru - The Walk to the Base
Taxi to Hidroelectrica
A short ride takes you to the end of the road and the start of the train tracks.
The Railway Walk
Walk 11km (3 hours) along the train tracks to Aguas Calientes. It’s flat, free, and beautiful.
Arrival in Aguas Calientes
Also known as Machu Picchu Pueblo. It’s touristy, so find a hostel off the main strip for better prices.
Early Night
Buy snacks and water for tomorrow. Prices at the top are 5x higher than in town.
Day 16: Machu Picchu, Peru - The Wonder
Hike up to the Gates
Save $12 by walking up the stairs to the entrance instead of taking the bus. It takes about an hour.
Explore Machu Picchu
Witness the clouds lifting off the ruins. This is your one major 'splurge'—it's worth every penny.
Hike back to Hidroelectrica
Descend the stairs and walk back along the tracks to the hydroelectric station.
Night Van to Cusco
Take the 6-hour van directly back to Cusco, arriving late but satisfied.
Day 17: Cusco, Peru - Recovery & Souvenirs
Sleep in & Recovery
You’ve earned a late start. Enjoy a slow breakfast of 'Adobo' stew in the market.
Souvenir Shopping
San Pedro Market is the place for cheap alpaca sweaters, salt from Maras, and local coffee.
Museum of Pre-Columbian Art
A smaller, well-curated museum that provides context for everything you've seen.
Farewell Cusco Dinner
Try 'Anticuchos' (skewered beef heart) from a street vendor for an authentic $1.50 dinner.
Day 18: Puno, Peru - Lake Titicaca Bound
Bus to Puno
Travel across the high Altiplano plateau (7-8 hours). Keep your camera ready for llamas and alpacas.
Arrival at Lake Titicaca
At 3,812m, Puno is the highest city on this trip. Take it easy and walk the pedestrian Jiron Lima street.
Lakefront Walk
Walk to the harbor to see the highest navigable lake in the world at sunset.
Try Fried Trout
'Trucha Frita' from the lake is the local specialty and is very affordable.
Day 19: Puno, Peru - Floating Islands
Uros Floating Islands
Take a budget boat from the harbor to visit the islands made entirely of totora reeds.
Sillustani Tombs
Take a local bus to these pre-Incan funeral towers located on a beautiful peninsula.
Puno Cathedral
Admire the stone carvings on the facade of this Baroque-style cathedral in the main square.
Final Backpacking Feast
Gather your hostel mates for a final meal and share stories from the last 20 days.
Day 20: Puno to Lima - The Journey Ends
Transfer to Juliaca Airport
Take a colectivo to the nearby city of Juliaca for your flight back to Lima.
Flight to Lima
Catch a low-cost flight to save 24 hours of bus travel. Book early to keep the price low.
Last Minute Lima Shopping
If you have a late international flight, leave your bags at the airport and head to the Larcomar mall.
Departure
Head to the gate with a heart full of Andean memories and a wallet that isn't empty.
Best Time to Visit Peru
The best time to visit Peru is during the dry season, which runs from May to October. This period offers sunny days and clear blue skies, ideal for trekking in the Andes and visiting Machu Picchu. June, July, and August are the peak months with the best weather but also the highest number of tourists. For budget travelers, the shoulder months of May and September offer a great balance of lower prices and good weather. The wet season (November to April) can make trekking difficult due to rain and mud, and the Inca Trail is closed for maintenance every February.
Currency & Money
The currency in Peru is the Peruvian Sol (PEN). While high-end hotels and restaurants in Lima and Cusco accept credit cards (Visa and Mastercard are most common), Peru is very much a cash-driven society, especially for budget backpackers. You will need cash for markets, colectivos, street food, and small hostels. ATMs are widely available in cities, but they often have withdrawal limits and fees; look for BCP or MultiRed (Banco de la Nación) for lower fees. Tipping is not mandatory but rounding up the bill in small restaurants or giving a few Soles to guides is appreciated.
Getting Around Peru
Intercity travel in Peru is dominated by a comprehensive and affordable bus network. Companies like Cruz del Sur and Oltursa offer luxury 'cama' seats for long overnight hauls, while smaller companies like Tepsa provide more budget options. For the Sacred Valley and shorter trips, 'colectivos' (shared vans) are the fastest and cheapest way to get around. While Peru has a limited rail network, the trains to Machu Picchu are expensive; the 'Backdoor' route via Hidroelectrica is the preferred method for budget travelers. Domestic flights (LATAM, Sky, JetSmart) can be surprisingly cheap if booked in advance, often costing only slightly more than a long-distance bus ride.
