Jul 21, 2017
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How expensive is Iceland?

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How expensive is Iceland?

There is a perception that Iceland is expensive, but we can assure budget backpackers that it is possible to visit this beautiful country and not overspend.

Iceland is a dream destination, especially for adventure lovers who enjoy exploring the outdoors and admiring natural beauty.
Iceland has a stunning volcanic landscape complete with spouting geysers and settled lava rocks. It is a land of geothermal phenomena lit up at night by the magnificent northern lights. If you are traveling to Iceland on a budget, we are here to guide you with our full budget breakdown of what we spent while we were there.
Sun Voyager, Reykjavik How expensive is Iceland
We spent a total of 14 days in Iceland and we managed to find cheap accommodation in Reykjavik. The food and drinks were reasonably priced and we found a cheap deal on an airport transfer. We spent a vast proportion of our money on excursions, but it was worth every penny.

Strokkr Geysir - Golden Circle, How expensive is Iceland

How expensive is Iceland?

Here is our full breakdown of 2 people staying in Reykjavik for 14 days.

Expenditure Type Total Cost Total Count Average Cost
Accommodation Hostel £182 5 nights £36
Accommodation Guesthouse £353 9 nights £39
Transport Coach £72 3 coaches £24
Food and Drinks Eating Out £166 9 meals £18
Food and Drinks Supermarket for eating in £37.50 5 meals £7.50
Entertainment Alcohol £23 2 nights out £11.50
Entertainment Day trip self guided £6 1 trip £6
Entertainment Day trip guided tour £294 5 trips £59

Additional Costs
£3.50 – Tip for the Reykjavik City tour guide
£100 for 2 people – Flight from Manchester to Iceland
£231 for 2 people – Flight from Iceland to Copenhagen

The following estimated costs to stay in Iceland include all of the above expenditure minus the ‘Additional costs’.

How expensive is Iceland to stay for:

14 days based on 2 people = £1133.50
7 days based on 2 people = £566.75
4 days based on 2 people = £323
3 days based on 2 people = £242
Average Daily Cost for 2 people = £81
Average Daily Cost per person = £40.50

Photo opportunities, Golden Circle, Iceland

Cost of Iceland excursions from Reykjavik

Iceland Northern lights tour – £31pp
Blue Lagoon Entrance Fee – £30pp
Return transport to Blue Lagoon – £18pp
South Shore Adventure – £62.50pp
The Golden Circle tour – £36pp

Resources for Iceland day tours and Airport transfers

Bus Travel Iceland
Reykjavik Excursions
Tour Is
Flybus Reykjavik
Iceland Travel
Attraction Tix

Cost of other things to do in Iceland

laugardalslaug Reykjavik (public swimming pools in Reykjavik) – £3pp
Northern Lights Experience in the Northern Lights Center – £5.50pp

How expensive is Iceland for Transport

Return transport from Keflavik airport to Reykjavik – £18
Car hire Iceland – £35-£65 per day
Blue Lagoon transport- £18pp

Food and drink prices in Iceland

Price of beer in Iceland- £4
Tea/Coffee – £2.50
Soft drinks – £3
Lunch for 2 – £20
Sandwich at Durum Cafe in Reykjavik centre – £4.50
One day’s worth of food shopping at Bonus supermarket – £8
Icelandic meal at Cafe Loki per person – £15
Meal at the Perlan Reykjavik per person – £9
Pizza shop meal deal per person – £4

How to book cheap Iceland accommodation

There are lots of cheap hotels in Reykjavik and a good way to save money on accommodation is to book it yourself instead of through an agency or travel agent. You can also save money on accommodation in Iceland by visiting out of season (usually October – April).
Round The World Magazine recommend the following places to stay in Iceland:

  • Snorri’s Guesthouse £45 per room including breakfast
  • Alba Guesthouse – £30 per room including breakfast
  • Bus Hostel – £15 per bed in a 4 person dorm

    We have made it easier for you to search for a cheap place to stay in Iceland by using the tool below.


    Pathway in Þingvellir National Park in the Golden Circle, Iceland

    Iceland budget travel tips

  • Stay in a hostel or guesthouse if you are a travelling on a budget.
  • Book a room with free breakfast and fill up for the day.
  • Travel out of season (usually October – April) for cheap accommodation in Iceland.
  • Shop at a local supermarket to save money on food. Our favourite supermarket in Reykjavik was ‘Bonus’.
  • Go on a free guided walking tour of Reykjavik.
  • Visit low-cost attractions.
  • Walk everywhere for free.
  • Going to the Blue Lagoon? Book transport with a tour company and pay entrance fees when you get there. It is much cheaper to do the trip yourself than to book with an agency.
  • Book your Northern Lights tour at the beginning of your trip. Most agencies will offer to take you numerous times until you are lucky enough to see them.

    Gullfoss top viewpoint in Iceland's Golden Circle

    Top Tours in Iceland

  • The Blue Lagoon
  • South Shore Adventure
  • Northern Lights Tour
  • The Golden Circle
  • Whale and puffin watching

    Top things to do in Iceland

  • Laugardalslaug
  • Northern Lights Centre Reykjavik
  • Hire a car and drive route 1
  • Visit Gulfoss waterfall
  • Visit Skogafoss waterfall
  • Visit hot springs and geysers
  • Thingvellir National Park
  • Jokulsarlon Lagoon
  • Black sand beach (Vik)
  • Skaftafell National Park

    Free Things to do in Reykjavik

  • Free guided walking tour
  • Reykjavik Art Museum
  • Feed the birds by lake Tjörnin
  • Relax in a hot tub at Nauthólsvík
  • The Perlan provides an excellent panoramic view of Reykjavík
  • Hallgrímskirkja
  • The Harpa
  • The Sun Voyager

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