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.
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.
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
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
Grayline
Reykjavik Excursions
Tour Is
Flybus Reykjavik
Iceland Travel
Attraction Tix
Expedia
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:
We have made it easier for you to search for a cheap place to stay in Iceland by using the tool below.
Iceland budget travel tips
Top Tours in Iceland
Top things to do in Iceland
Free Things to do in Reykjavik
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Great article! Iceland is expensive but manageable. ones again, awesome article!
looking forward seeing you guys in iceland again 😉
Your NL guide,
Þröstur Freyr
Great article! Iceland is expensive for sure, but correctly managed easily doable on a low budged. Ones again, awesome article!
Looking forward seeing you again 😉
Your NL guide,
Þröstur Freyr