💰 Trip to Iceland Cost: My Budget Breakdown (2024)

💰 Trip Cost	Very Expensive
💵 Typical Budget	$90-$250/day
🍀 My Budget	$307/day
✈️ Trip Total	$2,147
🗓️ Trip Length	1 week

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Is Iceland Affordable To Travel To?

Iceland is a very expensive destination. Along with Switzerland and Norway, it’s known as one of the world’s most expensive countries to visit.

• The country has a high cost of living and tax rate.
• It is an extremely popular tourist destination, with visitors far outnumbering locals annually.
• The relatively small island heavily relies on imported goods.

For comparison, here’s my daily budget for destinations in Europe:

Country	My Budget
🇮🇸 Iceland	$307
🇪🇸 Spain	$155
🇮🇹 Italy	$131
🇵🇹 Portugal	$116

See all my daily budgets.

About My Trip

To give context to the expenses below, here’s what you need to know about my trip:

• I spent one week in Iceland, thoroughly exploring the South Coast.
• My trip was in August, during the peak season, when things are more expensive.
• I traveled with one other person, which allowed us to split costs like the campervan rental.
• I’m a mid-range budget traveler. I don’t aim to travel on a budget, but I’m intentional about my spending.
• I finance my trips and don’t receive sponsorship.
• All expenses are per person and in US dollars, converted from the Icelandic Króna.

The exchange rate was  $1 USD = 137 kr at the time of writing.

Planning a trip? Here’s what to know about Iceland.

Total Cost

• $2,697
• $2,147
• $307

A mid-range budget traveler can expect to spend about $250 per day in Iceland. This budget generally means:

• Staying at accommodations that cost about $90 per night
• Booking things 2-3 months ahead if traveling in the summer
• Paying for popular guided tours and activities (e.g., glacier hike)

Budget Breakdown

Here’s a breakdown of my expenses by travel category:

Category	Cost	% of Total	Daily Budget
✈️ Flights	$550	20%	–
🚐 Campervan	$1,300	48%	$186
🛢️ Gas	$90	3%	$13
🌭 Food	$200	7%	$29
🏔️ Entertainment	$557	21%	$80
Total	$2,697	100%	$307

Flight Cost

• $550 (from the east coast of the US to Keflavík International Airport)

A round-trip flight between the US and South Africa costing under $300 is considered cheap, as international flights typically cost over $500.

Accommodation Cost

I typically stay in mid-range budget hotels, but I traveled around Iceland by campervan and stayed at campsites, which was a great decision.

• $1,300
• $186

	Cost PP	Cost/Day
Campervan rental	$1,060	$151
Campervan insurance	$140	$20
Campsites	$100	$14

My accommodation budgeting tips:

• Iceland campsites have a per-person fee – These camping fees average $15 per night, which is cheap, as some include hot showers and kitchen facilities.
• Book a campervan at least 4 months ahead – If you book ahead, you can travel in a campervan for closer to $100 a day. I booked mine at the last minute.
• Book hotels 2 months ahead – If you plan to visit Iceland during the peak season, it’s important to book accommodations at least two months ahead. Otherwise, you will have few housing options, as tourist demand is very high in the summer.
• A mid-range budget hotel is still expensive – Expect to spend about $140 per night on a mid-range hotel in Iceland. During the high season, this increases to about $160 per night. Luxury hotels typically range from $300 to $700 per night.

Food Cost

• $200
• $29 (my total was $45 for groceries and $155 for dining out)

My most affordable meals:

Meal	Location	Cost
Hot dog	Gas station	$6
Cured salmon sandwich	Café Bryggjan	$6
Coffee and pastry	Kaffi Krus	$7

My most expensive meals:

Meal	Location	Cost
Reindeer burger	Íslenski barinn	$30
Pad thai	Wok On	$17
Sandwich and drink	Hja Hollu	$17

My food budgeting tips:

• Save money by grocery shopping – Dining out is expensive in Iceland (a sandwich or burger can cost $10 to $15). The popular grocery stores are Bonus (budget option), Kronan (has a wider selection), and Netto (has a smaller selection).
• A $2 hot dog at the gas station is one of the best value meals – Unlike the hot dogs in US gas stations and stadiums, the ones in Iceland are good. I ended up eating several of them throughout my trip.
• Alcoholic drinks are expensive – Alcohol has a high tax rate and import cost. You can save money by getting it at the Duty-Free Store at the airport or taking advantage of happy hours at local bars.
• Bring a reusable water bottle instead of buying bottled water – Iceland’s water is some of the cleanest in the world.
• Hákarl may not be worth it – I ate at Íslenski barinn because the restaurant is known to serve hákarl, a fermented shark delicacy. It wasn’t as bad as others claim, but it wasn’t as unique as I imagined.

You can learn about Icelandic cuisine at a food tour.

Transportation Cost

• Rental car costs – If you’re not traveling around Iceland by campervan like I did, you can expect to spend about $60 per day on a car rental.
• Gas costs – Gas prices are among the highest in the world in Iceland. If you drive the entire Ring Road, the main road around the island, gas can add more than $400 to your budget. My average cost of gas during my trip was $13 per day (I was able to split it with one other person).

During the summer, you can use Iceland’s public transportation (i.e., public and private bus companies) to get around the country. However, no single bus will take you around the entire country.

Entertainment Cost 

• $557
• $80

The activities/attractions I did:

Experience	Location	Cost
❄️ Jökulsárlón Glacier Lagoon	East	Free
💧 Seljalandsfoss	South	$3
🌀 Blue Lagoon	Reykjanes	$80
⛰️ Landmannalaugar Hike	Highlands	$115
🔥 Stokkur Geysir	Golden Circle	Free
💧 Kvernufoss	South	$2
💧 Skógafoss	South	Free
🧊 Glacier Hike	South East	$230
🐍 Fjaðrárgljúfur Canyon	South	Free
🏖️ Reynisfjara Black Sand Beach	South	Free
💎 Diamond Beach	Reykjanes	Free
♨️ Hrunalaug Hot Spring	West	$18
🐧 Dyrhólaey	South	Free
💧 Svartifoss	South East	Free
🌋 Kerid Crater	Golden Circle	$3
💧 Gulfoss	Golden Circle	Free
🥾 Glymur Waterfall Hike	West	Free
🐴 Icelandic Horse Riding	South	$80
💧 Gljufrabui	South	Free
♨️ Secret Lagoon	Golden Circle	$26
🌋 Fagradalsfjall Volcano Hike	Reykjanes	$4

My entertainment budgeting tips:

• Tours are costly – The country offers many $100+ tours that take you whale watching, glacier hiking, and snorkeling between tectonic plates.
• Iceland has many free natural attractions, but they may have small bathrooms or parking fees – It’s known for its natural beauty with no entrance fee, but several have facilities fees that range from $1 to $5.

See my ratings for Iceland experiences.

Do You Need Cash?

• Iceland has an excellent credit card infrastructure, and I found that even remote campsites take credit cards. It’s rare to need cash.

American Express is not widely accepted in Iceland, so bring a Visa or Mastercard credit card.

My tips on using cash:

• USD is not widely accepted, so withdraw a bit of cash in Icelandic Króna.
• Carry less than $40 worth of cash. You only need a small amount in case a card machine is broken or for a few cash-only places. The only place I visited that required cash during my trip was Hrunalaug Hot Spring, but they now accept card payments.
• Tipping is not customary in Iceland, but it’s appreciated by businesses that serve tourists.

Iceland Trip Planner 2024

To make your travel preparation easier, download the trip planner below. It has destination-specific travel information, itinerary, map, and packing list.

My trip planners are built on Notion, which I use for all my travel planning. I genuinely love this tool and creating an account is free.