Iceland is without a doubt one of the more expensive countries to visit in Europe. If you’re looking at flights, accommodation, eating out, a rental car, and fuel, the costs really add up quickly, especially if you’re travelling during the busier summer months.
A reason for Iceland being such an expensive destination is that the country imports a lot of goods, while wages and general living costs are also relatively high. Besides this, experts are involved for the excursions you’ll be able to book, so they come with a higher price tag.
That being said, I don’t think the cost should stop you from crossing Iceland off your bucket list. With some planning, smart tips & tricks and flexibility, you could easily save some money on certain parts of the trip.
Iceland Budget: What Can I Expect? My Quick Answer
If you’re traveling on a budget to Iceland, I’d say around 80–120 euros per person per day is doable. This means choosing cheaper accommodation, cooking more often, and skipping most of the expensive excursions or only picking one special activity during your trip.
Short on Time? Check Out My Favorite Iceland Hotel Stays
⚪️⚪️⚪️ Hotel Selfoss – Click to see rates and availability
⚪️⚪️ Paradise Cottages – Click to see rates and availability
⚪️ Ekra Glacier Lagoon – Click to see rates and availability
With a budget of around 120–250 euros per person per day, you’ll have a lot more flexibility. You can stay somewhere more comfortable, go out for dinner more often, and include a few paid activities without constantly thinking about every euro you spend.
If you’re happy to spend 250+ euros per person per day, you can travel around Iceland much more freely. You’ll have room for nicer hotels, fancier restaurants, and several excursions, so you can simply choose the experiences that appeal to you most.
Accommodation in Iceland
This is one of the highest expenses during your trip. Especially after you’ve passed Selfoss, stays in towns like Vík will become more expensive. I’d highly recommend booking your accommodation as early as possible, preferably after you’ve confirmed your flights.
For accommodation we paid an average of 120 euros per night, which is pretty decent if you’d ask me. This is based on a mix of hotels, guesthouses and apartments, all with our own bathroom, right after the busy summer season.
It’s definitely possible to stay for less, with hostel beds sometimes averaging around 40 euros per night. If you don’t mind sharing a room and keeping things simple, this can save you quite a bit compared to a private room.
Rental Car in Iceland
If you’re planning a road trip along the south coast of Iceland, renting a car is almost essential. It might feel like a big expense at first, but the freedom to stop whenever you want, take some detours, and explore Iceland at your own pace is absolutely worth it.
Our rental car cost around 75 euros per day, which I’d say was a pretty decent price. It was comfortable, spacious enough for four people, and gave the two of us more than enough room for all our luggage and road-trip essentials.
Food & Drinks in Iceland
Food and drinks in Iceland are definitely on the expensive side, especially if you’re planning to eat out every day.
On the south coast, I’d roughly budget around 15–25 euros per person for lunch at a casual café or restaurant, while dinner at a proper restaurant can easily cost around 25–40+ euros per person, depending on what you order.
If you want to keep your costs down, I’d recommend mixing restaurant dishes with supermarket food or simple lunches, like a sandwich, on the road. Eating out every day adds up very quickly.
Activities in Iceland
Besides accommodation and flight tickets, excursions are one of the bigger expenses to keep in mind when visiting Iceland. For example, a glacier tour lasting around 3–4 hours can easily cost more than 100 euros per person.
We chose to go for the whale watching tour in Reykjavík, as we were visiting during a great season for it. The tour cost us around 90 euros per person, which was slightly less than what many other activities in Iceland can cost.
I must say, traveling to Iceland on a budget definitely doesn’t mean you have to book one of the more expensive excursions.
The country’s natural beauty already gives you plenty of incredible things to do for free, from walking through Þingvellir National Park and visiting some of Iceland’s most spectacular waterfalls to exploring Fjaðrárgljúfur Canyon.
Honestly, you could fill several days with unforgettable sights without spending a single euro on activities.
Flight Tickets to Iceland
Depending on where you’re flying from, I’d say a return ticket from Europe to Iceland will generally cost around 300–500 euros per person, depending on the season, how early you book, and the airline you choose.
One thing I’d definitely recommend is booking with a reliable airline. We went for the cheapest option available at the time, and honestly, it turned into one of the worst decisions of our trip. Just a couple of days before we were supposed to fly home, we received an email saying the airline had gone bankrupt and had stopped operating all flights immediately.
That meant we suddenly had to book completely new flights back to the Netherlands, which cost us another 1,300 euros for two people. So yes, saving a little money on your original ticket can be tempting, but sometimes the cheapest option can become very expensive in the end.
Tips to Save Money on Your Iceland Trip
1. Book your accommodation in advance
If you book your accommodation as early as possible, you’ll have more options to choose from, which means you can really save some money. If you wait until your trip is getting close, prices are likely to have risen, and you may end up paying more per night.
2. Visit Iceland during low season instead
The time of year really does matter if you’re planning to visit Iceland on a budget. Traveling at the beginning of the year or just after the peak summer season can make a noticeable difference, as flights, accommodation, and sometimes even rental cars tend to be more affordable.
If you’re flexible with your dates, choosing one of these quieter periods can help you save quite a bit without missing out on what makes Iceland so special. I’ve written a full article about the best month(s) to visit Iceland.
3. Get lunch from Bónus or Krónan
To save money on meals, you could grab some delicious sandwiches for lunch at Bónus or Krónan supermarkets. They’re affordable, filling, and perfect to take with you for a long day on the road.
It also saves you quite a bit of time, as you don’t have to stop at a restaurant every time you get hungry. 😉 We found this especially handy on longer driving days when we wanted to make the most of our time exploring.
4. Bring food from home to Iceland
Another easy way to save some money on food is to bring some items from home, if your luggage allowance allows it.
Things like snacks (muesli or protein bars), breakfast items like your favorite muesli or granola, or simple dry fruits to make your own breakfast or lunch, can really help reduce costs for eating out.
Quick Overview Expenses Iceland
To make things easy, I’ve put together a quick overview of the expenses you can expect when visiting Iceland. These average daily costs are based on my own experience and next to it you can see what we actually spent during our recent trip.
Of course, your final budget can look completely different depending on the season, the type of accommodation you choose, how often you eat out, and how many paid activities you book.
Still, this should give you a realistic idea of how much to budget per day.
| Category | Average spend / day (in euros) | What we spent / day (in euros) |
| Flights (return tickets) | 300 – 500 | 1900 … |
| Accommodation | from 40+ | 120 |
| Car rental | from 50+ | 75 |
| Petrol | 10-15 | 15 |
| Parking | 10 | 5 |
| Lunch | from 5+ | 10 |
| Dinner | from 20+ | 25 |
| Activities | from 0 – 100 | 20 |
| Souvenirs | 5 | 5 |
| Miscellaneous | 5 | 5 |
Check Out My Other Iceland Blogs
The Best Waterfalls in Iceland: Add These Waterfalls to Your Iceland Itinerary
What’s the Best Month to Visit Iceland? My Honest Opinion & Thoughts
What to Pack for Your Iceland Trip? Check My Useful Packing Guide
The 9 Best Activities to Do in Iceland: Things to Do & Which Activities I Would Recommend
5 Days South Coast Iceland Itinerary: My Top Route & Tips
Check Out My Other Reykjavík Blogs
Spend 24 Hours in Reykjavík Iceland: What I Did and What I Recommend
Whale Watching Tour in Reykjavík Iceland: My Honest Review
Where to Stay in Reykjavík: My Favorite Areas and Hotel Stays
