How Expensive Is Iceland?

If Iceland’s dramatic landscapes, bubbling hot springs, and magical Northern Lights have made their way onto your bucket list, you might be wondering one big question: how expensive is Iceland?

Iceland isn’t exactly known as a budget destination, but don’t let that stop you! With a little planning, some clever tips, and a rental car, you can experience the very best of Iceland without maxing out your credit card.

Let’s explore how expensive a trip to Iceland really is, from flights and accommodations to how expensive food in Iceland can be. 

How Expensive Is a Trip to Iceland?

While prices can vary depending on your travel style, the season, and your preferences, here’s a rough breakdown of what you might expect to pay for a trip to Iceland.

Flights

Depending on where you're flying from, return tickets to Iceland can range from $400-$800 (from the US or Europe). Off-season (late fall to early spring) tends to be cheaper.

Accommodation

Accommodation costs in Iceland vary widely. The average cost of accommodation in Iceland, based on hotel rooms for two people, is around $145 per night, according to Iceland Tours. During the high season (summer), this can increase to $200-$400 per night. If you’re after a premium lodge escape, you could be looking at over $1,000 per night.

Car Rental

This can vary based on the season, vehicle type, and rental duration, but expect to pay roughly $40-$100 per day for a rental car in Iceland. At GO Iceland, quality rental cars at affordable prices are what we specialize in. Find your car today.

Attractions

Nature is free, but guided tours like glacier hikes, whale watching, or Silfra snorkeling, can cost anywhere from $70 to $200+.

On average, a one-week trip to Iceland for two people might range from $2,500 to $4,500, depending on how you want to spend it. It’s an investment, but it’s worth every Icelandic króna.

How Expensive Is Food in Iceland?

While food prices in Iceland can initially seem steep, there are plenty of ways to enjoy quality meals without overspending. Here’s what you can expect.

Restaurant Meals

A casual meal at a café will likely cost $20-$30 per person. A dinner at a mid-range restaurant could cost around $40-$60 per person. Fine dining can hit triple digits.

Groceries

Shopping at budget supermarkets like Bónus or Krónan is a great way to save. Stocking up on breakfast, snacks, and picnic supplies can cut your food budget significantly.

Alcohol

Alcohol is heavily taxed, so bar prices can be steep. Prices can range between $8–$15 for a beer or cocktail. Consider heading to the duty-free shop at the airport if you want to enjoy a drink later.

Food in Iceland can be expensive, but if you combine the occasional meal out with budget-friendly grocery runs, both your belly and budget will be happy.

Budget-Saving Tips for Iceland Travelers

Here are a few handy ways to keep costs low while still making the most of your Icelandic vacation.

• Rent a Car – Not only does a rental car give you freedom to explore at your own pace, but it also saves you money compared to booking day tours for every attraction.
• Stay in Guesthouses or Airbnbs - Cooking your own meals can save a lot over a week.
• Travel in the Off-Season - Late fall and early spring are cheaper for flights, hotels, and car rentals. Plus, you’ll avoid the crowds.
• Packed Lunches - Prepare some food at home to eat whilst exploring the country.
• Free Natural Wonders - Waterfalls, black sand beaches, geothermal landscapes, volcanoes... Iceland’s best attractions cost nothing but the fuel to get there. Check out our Guide to Gas Stations in Iceland for more information.
• Consider Camping - Camping in Iceland is a great way to save money and experience nature in a completely different way. A camper van offers a nice alternative to staying in hotels. While it might be pricier than renting a compact car or a typical 4x4, it conveniently combines your transport and accommodation all in one. 
• Bring a Refillable Water Bottle - Icelandic tap water is some of the purest in the world. There is no need to spend money on bottled water here.

Is Iceland Worth the Cost?

Yes. While it’s true that Iceland isn’t a cheap country, it is a place like no other. Between lava fields and glaciers, secret lagoons, and powerful waterfalls, the land of fire and ice offers experiences that simply can’t be found anywhere else on Earth.

Whether you’re after the Northern Lights, road-tripping the Golden Circle, or snorkeling between tectonic plates at Silfra, Iceland is a place where every moment feels like magic, and that’s worth the investment.