Is it actually possible to see Machu Picchu on this budget?

Yes, but you have to walk the 'hidroelectrica' route rather than taking the expensive train. It involves a bus to Hidroelectrica and a 3-hour walk along the train tracks to Aguas Calientes.

Should I exchange money at the airport?

No. The rates at airports are terrible. Take out soles from a local ATM in the city center or exchange USD at a 'casa de cambio' on the street.

Travel Peru on $20 a Day

To survive on $20 USD per day in Peru, you must stick to local 'menú' lunch specials, travel exclusively by long-distance buses, and sleep in shared hostel dorms. Avoid all tourist-priced excursions and prioritize free walking tours and public transit.

Eat the 'Menú del Día'. Look for small, family-run restaurants displaying a chalkboard sign that says 'Menú'. You will get soup, a main course (lomo saltado or pollo a la brasa), and a drink for between 8 and 12 soles ($2.25–$3.50). Skip fancy dinners; buy fruit and bread at local markets for breakfast and snacks.
Use Overnight Buses. Book 'cama' (flat-bed) or 'semi-cama' buses for long hauls between cities like Lima, Cusco, and Arequipa. Not only is the bus cheaper than a flight, but you save the cost of a hostel night by sleeping on the road. Use sites like RedBus.pe to compare prices, but buy at the station for better haggling.
Sleep in Dorms. Stick to hostels with communal kitchens. Hostels in cities like Cusco or Huaraz offer beds for $7–$9 per night. Cooking your own pasta or rice in the hostel kitchen at night will keep your food budget under your $20 limit.
Skip the Tourist Traps. Avoid organized tours for sites like Machu Picchu or Rainbow Mountain, which can cost $100+. Use local 'colectivos' (shared vans) to get to trailheads and hike independently. Always carry your student ID (ISIC) if you have one; it often halves entrance fees to ruins.

Is it actually possible to see Machu Picchu on this budget?: Yes, but you have to walk the 'hidroelectrica' route rather than taking the expensive train. It involves a bus to Hidroelectrica and a 3-hour walk along the train tracks to Aguas Calientes.
Should I exchange money at the airport?: No. The rates at airports are terrible. Take out soles from a local ATM in the city center or exchange USD at a 'casa de cambio' on the street.