Cheaper than mainland Spain or the Algarve in low season, similar in summer. Budget €60–90/day solo, €120–180/day per couple including a rental car. Restaurant mains run €10–18, a glass of poncha €2–3, hotel doubles from €70 off-season. Funchal old town is more expensive than the rest of the island.
Madeira has stayed cheaper than the Canaries or the Algarve, partly because it's harder to get to. Off-season (Nov–Mar) hotels routinely halve their summer rates and excellent self-catering apartments sit around €40–60 a night.
Food is the standout value — a full lunch with wine in a typical tasca runs under €15. Specialities like espetada (beef skewer on bay-leaf), bolo do caco and lapas are inexpensive everywhere outside the most touristy seafront restaurants.
Activities that bump the budget: car hire (€25–45/day), whale-watching boat trips (€35–60), Pico do Arieiro at sunrise tour (€35–50 per person).