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 May 2026 using platforms such as booking.com, airbnb.com, vinbudin.is 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: 30,373–94,470 per night 

EUR: 211–657 per night 

USD: 246–765 per night 

The prices were checked by searching on www.booking.com for a room located less than 3 km (1.8 mi) from the city center during the summer months.

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. 

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 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 summer 2026: 

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 events going on. 

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. 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: 17,908–21,897 per night 

EUR: 125–152 per night 

USD: 145–177 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: 13,409–17,898 per night 

EUR: 93–125 per night 

USD: 109–145 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 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 1 July 2025 are the following: 

ISK: 12,066–39,402 per night 

EUR: 84–275 per night 

USD: 98–320 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. 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. So, what is the cost of hiring a two-berth campervan per day? 

Here are the average prices for July 1, 2026: 

ISK: 15,467– 49,666 per day 

EUR: 108–346 per day 

USD: 126–403 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. A few shopping tips can help a lot. Bónus stores offer the best value, with locations across Reykjavík and in towns around the country. Krónan and Nettó are the next tier up as slightly more expensive but still affordable. Hagkaup is more of a department store with groceries, selling everything from clothes and cosmetics to food, and it's the priciest of the chains. 10-11 Shop is great if you run out of something essential but it is quite expensive. Outside the capital, you'll also find smaller stores like Kjörbúðin and Krambúðin, which can be slightly pricier than the big-city stores.

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 2,200–6,000 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)

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)

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) 

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)

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.

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. 

To rent a car in Iceland, prices start around 21,547 ISK (€150 / $175) 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 73,420 ISK (€512/ $595) 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!