When traveling somewhere new, many people like to set a rough budget first, and for a country like Iceland, that's a smart move. But how much are things 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!
If you'd rather not plan around prices at all, you can book an all-inclusive tour instead. Either way, this guide gathers recent prices for accommodation, food, and transport so you know what to expect before you go.
Prices were checked using platforms such as Booking.com, Airbnb.com, Vinbudin.is, and Numbeo.com.
Most fresh produce is imported, so fruit costs more here than at home for many visitors. Photo: Agnieszka Niebylska
Iceland is one of the more expensive countries to visit, and accommodation and food will take the biggest bites out of your budget. What you actually spend comes down to a few choices:
The two biggest levers are where you sleep and whether you eat out or cook for yourself. The sections below break down current ISK, EUR, and USD prices for each.
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%.
A 4-star room might mean an older timber building, not a modern tower or chain. Photo: Agnieszka Niebylska
Prices for a 4-star hotel and up per night:
ISK: 30,373–94,470 per night
EUR: 211–657 per night
USD: 246–765 per night
The price checks were all carried out for 2 adults sharing a room in downtown Reykjavík by searching on www.booking.com for a room located within 3 km (1.8 mi) from the city center during the summer months.
The central 101 district, between Harpa concert hall and Austurvöllur square next to Parliament, holds the most premium hotels. The 105 district sits just east of the center and tends to be noticeably more affordable for the same star rating, while still keeping you within walking distance of downtown.
— Amy Elizabeth O'Rourke, Product Manager
Travel dates change downtown room prices more than the hotel you pick. Photo: Agnieszka Niebylska
The shoulder seasons of March-April and September-October can often offer bargain prices. As of May 2026, we found some cheaper hotel and guesthouse rooms on Booking.com located less than 3 km (1.8 mi) from the city center. Location makes a big difference to what you pay, and a handful of downtown Reykjavík hotels come up repeatedly as reliable central picks.
ISK: 17,389–30,266 per night
EUR: 87–210 per night
USD: 101–245 per night
Choosing your dates carefully can make your accommodation budget-friendly. Booking a hotel in Iceland last minute can be quite risky, throwing up a fabulous bargain or leaving you with a few quite expensive and/or inconveniently located accommodations.
Hostel rates are usually per bed, so a private room for two costs more than a dorm bunk. Photo: Agnieszka Niebylska
Prices for dormitory-style accommodations were checked at Loft Hostel, Kex Hostel, and Bus Hostel for the summer of 2026.
Prices vary:
ISK: 15,670–23,952 per night
EUR: 109–167 per night
USD: 127–194 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 other events.
Our Reykjavík favorites are Loft Hostel and Kex Hostel, both known for their lively bars, recurring events, and characterful spaces (Kex has construction out front as of early 2026, worth knowing before you book). For a quieter, cleaner stay at a short bus ride from the center, Dalur HI Hostel is excellent value and sits near the Laugardalslaug pool. In summer only, Reykjavík University Hostel on campus near Tjörnin pond is another solid pick, with the Student Cellar bar across the street for cheap drinks and regular events.
If you want to save money on your accommodation, some hostels are less stylish, but still comfortable. The ones that aren’t in the heart of the city also offer cheaper private rooms, so again it depends on your priorities, and on whether a hostel or a hotel is the better fit for your trip.
Another site that is very useful for researching hostels is hostel.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 search Booking.com as well.
Located on Stórholt Street in Akureyri, the capital of North Iceland, the Akureyri Hostel and Apartments is one of the best places to stay outside of Reykjavík. Although it is not quite in the center of town, it has great mountain views and is particularly affordable.
On August 5th, 2026, a twin room with a private bathroom for 2 adults would cost:
ISK: from 30,268 per night
EUR: from 212 per night
USD: from 242 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 2026, and you will pay less:
ISK: from 16,468 per night
EUR: from 115 per night
USD: from 132 per night
However, you should check the prices and facilities at each hostel, as they can vary. You may end up paying more or less in remote areas because 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 summer 2026 in downtown Reykjavík. You can normally find lower prices in Spring and Autumn.
ISK: 17,948–52,246 per night
EUR: 125–363 per night
USD: 145–423 per night
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 August 1, 2026 are the following:
ISK: from 28,285 per night
EUR: from 198 per night
USD: from 227 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 there are only a few accommodation options, prices can be pushed up. Spring or Autumn means slightly cheaper available options.
Daily rates drop the longer you book, so a week out costs far less per day than three. Photo: Gunnar Gaukur
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. Campervans 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.
Here are the average prices of hiring a two-berth campervan per day for July 1, 2026:
ISK: 15,467–49,666 per day
EUR: 108–346 per day
USD: 126–403 per day
A campervan pairs especially well with longer routes like the Golden Circle and the full Ring Road. You can also book through our campervan rental page.
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.
To rent a car in Iceland, prices start around 21,547 ISK (€150 / $175) for 24 hours for a 4-seater economy car.
Of all the costs in Iceland, travelers ask most about food and drink. Sit-down restaurants and cafés are the most expensive, while supermarket shopping is the most affordable option. Alcohol is in a category of its own.
Prices shift station to station, so a quick check before filling up can trim the cost. Photo: Agnieszka Niebylska
Iceland is not a cheap country when it comes to food, but there certainly are ways to keep the costs down. If breakfast is included in your accommodation, then go for it! If your accommodation gives access to a kitchen, you can cut costs a lot. Preparing your own food and going for picnics is always going to be cheaper than eating out all the time.
Reykjavík has a good selection of supermarkets with a wide choice of Icelandic food:
In terms of street food and cheap places to eat in Reykjavik, we’ve made a separate blog post about the places for foodies with meals that cost around 1000 ISK / less than 10$.
Lunch menus at sit-down spots often cost far less than the same kitchen charges at dinner. Photo: Kopar
A meal in a cheap restaurant is 2,200–6,000 ISK (€15–41/ $18–49)
A 3-course meal in a mid-range restaurant price for 2 people is 10,000–30,000 ISK (€70–200/ $81–244)
Combo meal deal at a fast-food restaurant is 2,500–3,450 ISK (€17–24/ $20–28)
Domestic beer (0.5 l) is 1,000–1,750 ISK (€7–12/ $8–14)
Cappuccino is 462–900 ISK (€3–6/ $4–7)
Coke/Pepsi (0.33 l) is 250–500 ISK (€2–3/ $2–4)
Water (0.33 l) is 250–500 ISK (€2–3/ $2–4)
Pre-packed produce usually costs more per kilo than loose fruit sold by weight. Photo: Agnieszka Niebylska
Milk (1 l) is 205–350 ISK (€1.43–2.44/ $1.67–2.85)
White bread (500 g) is 250–908 ISK (€1.74–6.33/ $2.03–7.38)
White rice (1 kg) is 296–600 ISK (€2.06–4.18/ $2.41–4.88)
Eggs (12 pcs) are 600–1,198 ISK (€4.18–8.35/ $4.88–9.74)
Boneless chicken (1 kg) is 1,500–3,700 ISK (€10.46–25.8/ $12.19–30.08)
Beef steak (1 kg) is 3,200–7,000 ISK (€22.31–48.81/ $26.01–56.91)
Oranges, apples, or bananas (1 kg) is 271–1,035 ISK (€1.89–7.22/ $2.20–8.41)
Potatoes (1 kg) are 271–560 ISK (€1.89–3.9/ $2.20–4.55)
Tomatoes (1 kg) are 431–1,000 ISK (€3.01–6.97/ $3.50–8.13)
Onions (1 kg) are 198–300 ISK (€1.38–2.09/ $1.61–2.44)
Lettuce (1 head) is 225–570 ISK (€1.57–3.97/ $1.83–4.63)
Marlboro cigarettes (pack of 20) are 1,500–1,890 ISK (€10.46–13.18/ $12.19–15.36)
Cheap supermarket beer is near-alcohol-free léttöl, not the lager you order at a bar. Photo: Agnieszka Niebylska
Normal-strength alcohol is only sold at Vínbúðin stores. You’ll also find low-strength beer (2.25%) at Bónus and Krónan supermarkets at much lower prices, since it's taxed like soda rather than alcohol. The only way to buy alcohol cheaper is to maximize your duty-free limit when you come into the country.
Brennivín (1-L bottle) is 11,699 ISK (€82/ $95)
A bottle of wine (mid-range) is 1,850–4,500 ISK (€12.9–31.38/ $15.04–36.58)
Dessert wine (750 ml bottle) is 1,999–5,699 ISK (€14–40/ $16–46)
Brandy (500 ml bottle) is 3,899–6,345 ISK (€27–44/ $32–51)
Domestic beer (500 ml bottle) is 385–643 ISK (€2.68–4.48/ $3.13–5.23)
Harvey’s Bristol Cream sherry (750 ml) is 4,999 ISK (€35/ $41)
Tequila (700 ml bottle) is 5,159–14,499 ISK (€36–101/ $42–118)
Whisky (500 ml bottle) is 5,698–26,729 ISK (€40–186/ $46–217)
Vodka (500 ml bottle) is 4,796–7,582 ISK (€33–53/ $39–61)
Yes. Iceland regularly ranks among the world's most expensive countries, mainly because of high local wages, the cost of importing most goods to a remote island, and a short growing season. Costs are very manageable with planning, though, and there are plenty of ways to save money in Iceland: self-catering, staying outside the city center, traveling in the shoulder seasons (April–May and September–October), and booking accommodation early all bring the total down. Booking an all-inclusive tour is another way to lock in costs upfront.
Yes, almost everywhere. Iceland is one of the most cashless countries in the world, and cards, including contactless and mobile payments like Apple Pay and Google Pay, are accepted nearly universally, from Reykjavík restaurants to hotels, buses, and gas stations. The local currency is the Icelandic króna (ISK), and you rarely need cash. Two things worth knowing: if a card machine offers to charge you in your home currency instead of ISK, always choose ISK to avoid poor conversion rates, and most self-service fuel pumps require a chip-and-PIN card, so know your PIN before you travel.
500 ml of beer usually costs between 1,000 and 1,750 ISK (€7–12/ $8–14) at a restaurant. 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.
Tipping is not expected in Iceland. Service staff earn a full, fair wage rather than relying on tips, so there's no obligation to add anything on top, and some bills already include a small service charge. Tipping in a restaurant, on a tour, or in a taxi is appreciated for exceptional service but never required: rounding up the bill is always plenty. That makes budgeting simpler than in countries where tipping is customary.
Gas in Iceland is more expensive than in the US but comparable to many European countries. Petrol prices currently vary between 205–235 ISK (€1.43–1.64 / $1.66–1.90) per liter, and diesel sits around 247–268 ISK (€1.72–1.87 / $2.00–2.17) per liter.
Prices vary noticeably between brands and even between stations a few minutes apart, so it's worth shopping around. Atlantsolía and Costco (in Garðabær) tend to be the cheapest, while N1, Olís, and Orkan sit at the higher end. The site gasvaktin.is shows live prices on a map across the country. Most rental car companies also give you a fuel discount card with your keys, which is worth using consistently.
The Smyril Line Ferry Company can ship your car from Denmark to Seyðisfjörður, a charming port on a magnificent fjord in East Iceland, for 73,420 ISK (€512/ $595) in autumn 2026. 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.
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