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How much does an Algarve holiday cost?

The Algarve's 150km coast spans budget-friendly eastern towns and premium central resorts. A week's holiday for two people ranges from roughly €1,000 in winter (off-peak accommodation, cheap car rental, local restaurants) to €3,000+ in August (peak pricing on everything). The biggest variable is when you go — the same municipality can cost 2–3× more in peak summer than in November.

Average weekly cost by municipality (7 nights, 2 people, June)

Alcoutim €1,460
€97/night €29/day/pp €40/day
São Brás de Alportel €1,565
€122/night €28/day/pp €32/day
Vila Real de Santo António €1,712
€116/night €35/day/pp €45/day
Faro €1,754
€123/night €36/day/pp €42/day
Aljezur €1,803
€124/night €37/day/pp €46/day
Olhão €1,824
€132/night €36/day/pp €43/day
Silves €1,866
€150/night €33/day/pp €37/day
Tavira €1,887
€135/night €39/day/pp €43/day
Monchique €1,908
€150/night €34/day/pp €41/day
Vila do Bispo €2,013
€170/night €37/day/pp €30/day
Lagoa €2,286
€180/night €43/day/pp €47/day
Lagos €2,405
€200/night €42/day/pp €46/day
Albufeira €2,566
€225/night €43/day/pp €42/day
Castro Marim €2,566
€247/night €35/day/pp €36/day
Portimão €2,636
€230/night €40/day/pp €53/day
Loulé €3,000
€290/night €38/day/pp €49/day

June estimates for 7 nights, 2 people. Includes €50 activities + €45 airport transfer. Prices vary by season — use the estimator above to check your dates.

What affects the price most?

  • Season: August costs 2–3× more than January across all categories. The best value months are typically May, June, and October — warm enough for the beach, 30–50% cheaper than peak.
  • Location: Central resorts (Albufeira, Loulé) charge premium rates. Eastern towns (Tavira, Castro Marim, VRSA) and the wild west coast (Aljezur, Vila do Bispo) are significantly cheaper.
  • Car rental: The biggest seasonal swing — from €15/day in winter to €60/day in August. Book automatic transmission early if you need it; it sells out.
  • Eating out: Local restaurants away from the beachfront cost 30–40% less than tourist-area equivalents. Markets in Loulé, Olhão, and Tavira provide excellent self-catering options.

Average Weather in the Algarve

Weather data: 30-year averages (1995-2024) via Open-Meteo