Prices in Iceland

As one of the most unique and remote travel destinations, Iceland is known not only for its spectacular views, but also for taking a top spot in the list of expensive countries. Iceland is a small country with a short harvest season, and as a result, it relies a lot on imported products.

But even if some price tags are bigger, it doesn’t mean you should avoid Iceland! There are many ways to budget and make sure you get a good value for your hard-earned bucks!

Traveling to Iceland doesn’t have to cost a fortune as long as you take some time to check out the general information about prices and look for bargains. Or, to ease your worries, simply book an all-inclusive tour.

To help you get an overall impression of prices in Iceland, we gathered recent information about accommodation, food, and transport. Check out this guide and pack your suitcase, because now just might be the best time to visit Iceland!

All these prices were checked in January 2025 using platforms such as booking.com, airbnb.com, and numbeo.com

The price checks were all carried out for 2 adults sharing a room in downtown Reykjavík.

If you are going out of the city center, which can be great if you have a car rental, then the prices are going to go down. So, if you are staying out of town you can cut your accommodation budget by around 30-50%!

Prices for a 4-star hotel and up per night:

ISK: 31,110 – 48,329 per night

EUR: 215 – 334 per night

USD: 222 - 345 per night

The prices were checked by searching on www.booking.com for a twin room located less than 3 km (1.8 mi) from the city center on 1st March 2025.

The shoulder seasons of March-April, and September-October can often offer bargain prices. Searching booking.com for 1 March 2025, we found some cheaper hotel and guesthouse rooms located less than 3 km (1.8 mi) from the city center.

ISK: 17,219 – 49,776 per night

EUR: 119 – 344 per night

USD: 122 – 355 per night

Choosing your dates carefully can make your accommodation budget-friendly! Booking last minute can be quite risky in Iceland, throwing up a fabulous bargain, or leaving you with a few quite expensive and/or inconveniently located accommodations.

Dormitory-style accommodation was checked at Loft Hostel, Kex Hostel, and Bus Hostel for the 1st of March 2025:

ISK: 15,048 – 21,849 per night

EUR: 104 – 151 per night

USD: 107– 156 per night

The more expensive hostels are usually the “nicer” ones, offering a bar, restaurant, or good café and places to hang out. Often, there will also be live music or events going on.

My Reykjavík favorites are Loft Hostel and Kex Hostel, both have lively and cozy bars and very individual styles – there is always plenty going on but you can just chill out if you want. The loft offers soups and light refreshments, and Kex serves tasty pub-style meals and snacks.

If you want to save money on your accommodation, some hostels which are less stylish, but still comfortable, and not quite in the heart of the city offer cheaper private rooms, so again it depends on your priorities. Another site that is very useful for researching hostels is hostels.is, particularly when you want to arrange stays at various locations around Iceland. Not all hostels are listed there, though, so it is always best to check booking.com as well.

The hostel at Stórholt, Akureyri, is one of the best places to stay outside of the capital. Not quite in the center of Akureyri, it has great views of the mountains and is particularly good value. On 1st June 2025, a twin room would cost:

ISK: 23,296 – 25,900 per night

EUR: 161 – 179 per night

USD: 166 – 184 per night

A higher price gets you a larger room, and if you pay more, you can even have a private bathroom. Stay on the 1st of November 2025, and you will pay less:

ISK: 12,444 – 19,968 per night

EUR: 86 – 138 per night

USD: 88 – 142 per night

However, you do need to check out each individual hostel, its prices, and its facilities, as they can vary. You can end up paying more or less in really remote places—there is no hard and fast rule!

Guesthouses are often charming, with many offering facilities similar to those of small hotels. Quite a few have guest kitchens, and cooking for yourself is another great way to keep costs lower. The prices were checked for 1 July 2025. You can normally find lower prices in Spring and Autumn.

ISK: 13,312 – 16,640 per night

EUR: 92 – 115 per night

USD: 95 – 118

There is a huge range of Airbnb accommodations in Iceland, and the availability is constantly changing, as this market is very season- and location-dependent. A small private apartment for 2 people or a 2-person room is the best way to go. You might want to check the facilities because if you opt for the room, you may be sharing the bathroom with other guests or your host. It’s also good to know that while some hosts share their bathroom or kitchen with the guests, others might refuse to do so.

The prices you might pay for a private apartment with beds for at least two adults in Downtown Reykjavík for 1 July 2025 are the following:

ISK: 25,033 – 82,913 per night

EUR: 173 – 573 per night

USD: 178 – 591 per night

If you are willing to stay on the outskirts of Reykjavík, it can be easier to find slightly cheaper Airbnb accommodation. Likewise, you can often find lower prices out in the countryside. However, in areas where the demand is very high and only a few accommodation options, prices can be pushed up. Spring or Autumn mean slightly cheaper available options.

Combining your accommodation and transport gives you freedom and flexibility. Plus, there’s nothing better than non-stop driving around Iceland’s natural beauty and stopping at majestic landscapes. Camper vans will be a great option if you want to travel the whole Golden Circle, take on the Ring Road, and see the world-famous Northern Lights and hot springs. So, what is the cost of hiring a two-berth campervan per day? Here are the average prices for July 1, 2025:

ISK: 14,836 – 48,675 per day

EUR: 102 – 336 per day

USD: 105 – 347 per day

Companies will not normally rent a van to you for less than three days, especially in the summer. The most expensive vehicles come with extras, for example, a shower and/or a roof tent. Standard insurance coverage is included, with extra options being available for an additional fee. Some, but not all vehicles, can be insured for driving on F roads. The items that the basic rental fees will cover vary from company to company, so this is something you should check up on too.

Iceland is not a cheap country when it comes to food but there certainly are ways to keep the costs down. If breakfast is included in your accommodation, then go for it! If your accommodation gives access to a kitchen, you can cut costs a lot. Preparing your own food and going for picnics is always going to be cheaper than eating out all the time.

Reykjavik has a good selection of supermarkets with a wide choice of Icelandic food. Shopping tips can help a lot – Bónus stores offer the best value, there are a few in the city and, also, in various towns. 10-11 Shop is great if you run out of something essential but it is quite expensive. Krónan and Hagkaup offer a good choice of high-quality products but they are also more expensive than Bónus. You will also find village shops are a little more expensive than city stores, such as Kjörbúðin and Samkaup, which you will find in the countryside.

In terms of street food and cheap places to eat in Reykjavik, we’ve made a separate blog post about the places for foodies with meals that cost around 1000 ISK / less than 10$.

A meal in a cheap restaurant is 2.000 - 5,500 ISK (EUR 13 - 37 / USD 14 - 39)

A 3-course meal in a mid-range restaurant price for 2 people is 11,000 – 30.000 ISK (EUR 75 - 207 / USD 78 - 213)

Combo meal deal 2,199 – 3,000 ISK (EUR 15.18 - 20.71 / USD 15.62 - 21.31)

500 ml beer (domestic) 1,000 – 1,800 ISK (EUR 6.90 - 12.42 / USD 7.10 - 12.79)

Cappuccino 500.00 - 1,000 ISK (EUR 3.45 - 6.90 / USD 3.55 - 7.10)

Coke/Pepsi (0.33 liter) 300 - 550 ISK (EUR 2.07 - 3.80 / USD 2.13 - 3.91)

Water (0.33 liter) 250 - 490 ISK (EUR 1.73 - 3.38 / USD 1.78 - 3.48)

1 liter of milk 204 – 350 ISK (EUR 1.41 – 2.42 / USD 1.45 – 2.49)

500g of white bread loaf 326 – 1,000 ISK (EUR 2.25 – 6.90 / USD 2.32 – 7.10)

1 kg of white rice 296 – 649 ISK (EUR 2.04 – 4.48 / USD 2.10 – 4.61)

12 eggs 600 – 960 ISK (EUR 4.14 – 6.63 / USD 4.26 – 6.82)

1 kg of boneless chicken 1,500 – 3,699 ISK (EUR 10.35 -- 25.53 / USD 10.66 – 26.28)

1 kg of beef steak 2,978 – 7,000 ISK (EUR 20.55 – 48.31 / USD 21.16 – 49.73)

1kg of oranges, apples, or bananas 200 – 750 ISK (EUR 1.38 – 5.18 / USD 1.42 – 5.33)

1 kg of potatoes 250 – 560 ISK (EUR 1.73 –3.87 / USD 1.78 – 3.98)

1 kg of tomatoes 431 – 949 ISK (EUR 2.14 – 6.55 / USD 2.20 – 6.74)

1 kg of onions 180 – 550 ISK (EUR 1.24 – 3.80 / USD 1.28 – 3.91)

1 head of lettuce 225 – 600 ISK (EUR 1.55 – 4.14 / USD 1.60 – 4.26)

Bottle of wine (mid-range) 2,000 – 4,500 ISK (EUR 13.80 – 31.06 / USD 14.21 – 31.97)

Domestic beer (0.5-liter bottle) 360 – 604.55 ISK (EUR 2.48 – 4.17 / USD 2.56 – 4.29)

Cigarettes 20 pack (Marlboro) 1,600 – 1,890 ISK (EUR 11.04 – 13.04 / USD 11.37 – 13.43)

Normal-strength alcohol is only sold at Vínbúðin stores. The only way to buy alcohol cheaper is to maximize your duty-free limit when you come into the country.

An individual bottle of Brennivín 499 ISK (EUR 3.11 / USD 3.40)

Individual vodka & lemon 445 ISK (EUR 2.77 / USD 3.04)

An individual bottle of wine (187ml) 599 ISK (EUR 3.73 / USD 4.09)

Bottle of wine – cheap to middle range 1,799 – 4,249 ISK (EUR 11.20 – 26.45 / USD 12.27 – 28.98)

Bottle of dessert wine 3,599 – 16,666 ISK (EUR 22.41 – 103.75 / USD 24.55 – 113.68)

Medium bottle of brandy 500 ml 4,999 ISK – 7,999 ISK (EUR 31.12 – 49.80 / USD 34.10 – 54.56)

Bottle of port – cheap to middle range 5,084 – 7,775 ISK (EUR 31.65 – 48.40 / USD 34.68 – 53.03)

Bottle of Brennivín (schnapps) 3,990 (EUR 24.84 / USD 27.22)

Bottle of Harvey’s Bristol Cream Sherry 4,899 ISK (EUR 30.50 / USD 33,42)

Bottle of Tequila 7,490 – 17,500 ISK (EUR 46.63 – 108.94 / USD 51.09 – 119.37)

Bottle of whisky 3,999 – 23,499 ISK (EUR 24.90 – 146.29 / USD 27.28 – 160.29)

Bottle of best whisky (Macallan Double Cask 18 years) 54,999 ISK (EUR 342.39/ USD 375.15)

500 ml of beer usually costs between 1,000 and 1,800 ISK (EUR 6.82 - 12.28 / USD 7.04 - 12.67), with prices of 1,500 ISK (EUR 10.23 / USD 10.56) being the most typical. Happy Hour will get you a great reduction on these prices and sometimes a 2-for-1 offer. However, the price of beer in Iceland may differ from one place to another.

Many visitors say gas is expensive in Iceland, however, the prices are not very different from those in the UK/USA. As in a lot of countries, during the recent year, the petrol prices have grown drastically in Iceland they were affected too, although it’s true that most other countries have cheaper petrol.

Petrol prices currently vary around 322 ISK (EUR 2.13 / USD 2.20) per liter, and diesel price in Iceland is around 326 ISK per liter.

And if you want to rent a car in Iceland, the price will begin somewhere around 15,336 ISK / 105 EUR / 108 USD for 24 hours for a 4-seater economy car.

The Smyril Line Ferry Company can ship your car from Denmark to Seyðisfjörður, a charming port on a magnificent fjord in East Iceland, for 68,169 ISK / 465 EUR / 480 USD in autumn. The journey on a ferry from Denmark to Iceland takes 3 days, and the rates are per person for 2 people making a return trip with their vehicle.

Ready to book your trip to Iceland? Check out our multi-day vacation packages to get the most bang for your buck!