Backpacking Nicaragua on a Budget: How I Traveled for Under $500

If you’ve been craving an affordable adventure this year—one that gives you beaches, volcanoes, culture, and food that actually tastes like something—let me introduce you to Nicaragua.

Nicaragua is one of the most underrated destinations in Central America. When people talk about the region, they usually name-drop Costa Rica or Panama. But Nicaragua? Quiet. Understated. And that’s precisely what makes it special—and perfect for budget travelers and backpackers.

I spent a week backpacking Nicaragua for under $500, and not once did I feel like I was sacrificing anything. The key is planning smart, moving spontaneously but intentionally, and knowing where to place your coins.

Nicaragua is ideal for travelers who value:

Affordability
Adventure
Cultural authenticity
Warm, local hospitality

Unlike Costa Rica, where tourism is heavily commercialized (and expensive), Nicaragua still feels local, grounded, and real.

Here’s exactly how I did it—and how you can, too…

Getting Around Nicaragua: Renting a Car Was the Best Move

Let’s talk transportation. This is where budget travel in Nicaragua really comes together.

Instead of relying on shuttles and buses, we opted to rent a car, throw our backpacks in the trunk and explore. This honestly ended up being one of the best decisions of the entire trip. Not just for convenience, but for affordability too.

We paid $220 total for the week, which came out to $110 per person.
The same price it would have been to figure out transportation between cities and to the airport plus the mental labor.

Driving in Nicaragua was surprisingly easy. The major highways are straightforward, the signage is clear enough, and it honestly felt very similar to driving back home in the U.S.

But—a quick word of caution:

There are police checkpoints along the highways. They’re routine, but they are serious. Stay calm, have your passport and rental papers accessible, and if your Spanish is limited, keep your responses short and polite. No need to panic, just be prepared.

Our 5-Day Nicaragua Itinerary (Exact Breakdown + Costs)

Day	Location	Stay	Notes
Day 1	León	Hotel Flor de Sarta	~$31 per person (breakfast included)
Day 2–3	Granada	Casa Delia’s Hostel	~$58 total for two nights
Day 4–5	San Juan del Sur	Airbnb	~$58 total for two nights

Day 1: Managua → León

We landed in Managua, grabbed the rental car, and got on the road.
The drive to León took about 1.5 hours, and it was the perfect ease-in to the trip. We drove effortlessly using Google Maps and stopped wherever felt interesting. We were on no one’s clock but our own!

Our stay: Hotel Flor de Sarta
That night in Leon we stayed at a small boutique hotel with charm, quiet energy, and full breakfast for only $31 per person.

It was clean, comfortable, and a great landing spot after travel day.

Days 2–3: Granada

Granada was my favorite. From León, we drove to Granada, and yes—this is where those police checkpoints came into play. Nothing dramatic… just be aware and prepared.

Our accommodations, Casa Delia’s, a family-owned hostel felt like a warm hug. We were greeted by the matriarch of the family who welcomed us in, gave us the house rules, and offered us tea. We stayed there for two nights for the whooping total of $58 total each. A win.

Granada is that city you wander—not rush. So, we spent a lot of time just wandering around the streets and local markets.