Exactly How Much Our Iceland Trip Cost Us: Honest Budget Breakdown

How expensive is Iceland? We’re breaking down exactly how much our trip to Iceland cost us—from what we spent on accommodation and transportation to entertainment, tours and food. We hope this helps you come up with a realistic Iceland travel budget for your trip.

Do you find yourself daydreaming about travel and wondering, how expensive is Iceland?

Here’s the blunt truth… Iceland is one of the most expensive countries we’ve ever visited. But that doesn’t mean it’s out of reach—or that you need a luxury budget to experience it properly.

We’ve traveled to Iceland multiple times and planned our trips very intentionally, tracking what we actually spent along the way. In this guide, we’re breaking down exactly how much our Iceland trip cost us and where the money went.

If you want real numbers, honest advice, and a clear idea of what your Iceland travel budget might look like, you’re in the right place.

→ Looking for budget tips? We have a whole round up of money-saving tips for traveling Iceland on a budget.

Iceland Trip Cost Guide

• Accommodation 
• Transportation
• Food & Drink
• Activities
• Miscellaneous expenses

Important Note: Prices listed below are based on our exact costs from our trip in 2021. However, we’ve added notes to reflect what’s accurate for the coming season from the time of publishing our most recent update: January 2026. We will do our best to keep this guide updated, but know that prices fluctuate greatly depending on the season and will rise with time. 

Bonus! Want all the planning done for you? Check out our perfect Iceland itinerary for your first trip!

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Why is Iceland so expensive?

First things first…

Iceland isn’t just expensive for travelers. It’s regularly listed in the top most expensive countries in the world when it comes to cost of living.

There are several factors that determine the cost of living (and therefore travel) in any given country.  

For starters, Iceland is an island nation to which most goods are imported.

Things that you wouldn’t even think about – like the agricultural equipment used in farming – needs to be shipped in. This means the price trickles down into the food at restaurants and grocery stores.

Now, consider that gas must be imported. This means that not only is it expensive to get around, but it also becomes very costly to ship goods around the country.

Add to that the fact that Iceland has become an increasingly popular tourist destination, with a limited number of hotels and Airbnbs. This means that if the demand is there, owners can charge a premium for accommodation (especially in high season).

Now, are you ready to find out how much a trip to Iceland costs? Let’s jump right in…

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Accommodation costs in Iceland

When it comes to finding places to stay in Iceland, there are all sorts of options:

• Traditional Hotels
• Guesthouses
• Airbnbs
• Hostels
• Campgrounds (for both tent camping and campervans)

And it should come as no surprise that some of those options are going to be (much!) more expensive than others. 

We’ve stayed at a handful of different types of accommodation in Iceland, and we’ll be the first to tell you tent camping is the absolute cheapest option. However, we know that camping is not for everyone. 

So how much should you expect to spend per night on accommodation in Iceland?

Well, it depends on a few factors: 

1. Type of accommodation: A night at a campground will cost far less than a hotel, for instance.

2. Time of year: It’s worth pointing out that hotel prices can fluctuate significantly throughout the year. Prices in peak season can be much higher than in the winter months. For instance, I stayed at a guesthouse in downtown Reykjavik during the month of December for a cool $120 per night. When I looked at that same property for the following August, it was more than double the price. Yikes!

Note: The prices listed above are meant to give you an idea of the cost of accommodation in Iceland. They are by no means exact. During high season, they can get more expensive, and during low season, you may find better deals.

How to estimate your total accommodation cost:

Use the information above paired with your travel plans to come up with a good guess.

For example, we planned to camp for the first 11 days of our trip. Then, we stayed at a hotel in Reykjavik for the final 3 days in Iceland. So our total estimate would look like this:

• Campgrounds: 11 days x $30 = $330
• Hotel: 3 days x $300 = $900

Estimated accommodation cost = $1,230

Transportation costs in Iceland 

This category is a biggie! Depending on the type of trip you plan to take, these costs are going to vary significantly.

For instance, if you’re renting a car or campervan, you’ll need to pay the cost of the rental and gas. You will likely also encounter some parking fees during your Iceland road trip.

On the other hand, if you’re only staying in Reykjavík, you may be able to get along with only paying for an airport shuttle and the occasional bus ticket. 

We’ll share average prices for all types of transportation costs which you can then use to come up with your own estimate.

Vehicle rental costs

These prices rise significantly during the summer months. In the wintertime, you’ll find much cheaper prices, and we’ve tried to reflect that in the information below.

Important: Know that these prices are meant to give you an idea of what to expect, and they aren’t going to be exact. Additionally, if you are searching very close to your departure date (especially in peak season), the prices will be much higher. 

We’ve rented two different cars in Iceland, and we can tell you there are a few ways you can save money in this category. Jump down to read our tips for saving on your rental car. 

→ Related: We have a whole article detailing what you need to know about renting a car in Iceland.

Insider Tip: If you know you’ll be traveling during peak season, book your rentals as early as possible. As supply drops, prices can increase. While researching for our summer 2021 trip, we saw prices spike to crazy high amounts as we approached our departure date.

Want to save money on your campervan rental?

Good news! We’ve partnered with Happy Campers and they give discounts on lots of different things, like if you book early, book with your friends, or if you even rent one of their EXperienced Vans.

→ Related: We have a whole article detailing what you need to know about Iceland campervan rentals.

*You can forgo insurance, but then you run the risk of having a surprise expense. Roads in Iceland can be notoriously rough (think: wind and sand damage!) and replacing something like a damaged windshield can be quite costly.

Before your trip to Iceland, take a bit of time to really understand car rental insurance because you’ll be asked to select your policy when you arrive (if not before).

In many countries, there is a blanket insurance policy and there’s not much to decide other than if you’ll take it or leave it. However, in Iceland it’s a bit more complicated.

You’ll have the option of adding all different types of coverage: 

• Gravel protection
• Sand & ash
• Scratch & dent
• Tire protection
• Theft 

It can be downright confusing… I mean, to think that sand and ash damage is categorized differently than gravel (and requires different coverage) is pretty intense if you ask me. 

Do the research ahead of time so you aren’t caught off guard.

Still confused? We’ve got some tips and advice on how to select your car rental insurance policy. 

Gas

You can’t drive a car very far without gas, and unfortunately it’s hella expensive in Iceland. (Yeah, I just said “hella”.) Since petrol has to be imported to this somewhat isolated island nation, it’s easy to see why it’s pricey.

Like everywhere in the world, gas prices vary, but they tend to hover around 300-320 ISK per liter (in 2026). That works out to be about $9.60 USD per gallon. And it can certainly be higher than that. Yowza!

→ Psst! To find out EXACTLY how much you will spend on gas in Iceland, NorthBound has a handy gas price calculator (with up-to-date prices!) where you can input your itinerary.

Wanna save money on gas?

Sure you do! We’ve got some tips for you right here.

Flights to and from Iceland

This is a hard one to put a number to, as it will vary drastically depending on where in the world you’re flying from.

Our advice is to look at flight prices between your home and Reykjavík several months before you’re ready to purchase. Set price alerts so you’ll be notified of drops, and watch the trends. This should give you an idea of what to expect when it comes to the price of flights to Iceland.

→ Psst! We have more tips on how to save money when booking flights!

Other transportation costs in Iceland

• Parking fees: These can vary, but you can expect to pay somewhere around 200 ISK per hour ($1.50). Outside of Reykjavík, parking fees are a lot more common than when we last visited. Nearly all the major sights have a parking fee these days that are around 750-1,000 ISK ($6-8 USD) for a single-family vehicle (usually paid via app).
  • To give you an idea: If you were to do everything in our 7-day Iceland itinerary, you’d wind up paying around 20,000 ISK (~$160) just in parking and entrance fees.
• Reykjavík bus fare: 490 ISK (just under $4) is the typical cost of a bus ticket within the city. If you’re coming from outside the city, it can be more. We took 3 different buses in and around Reykjavík, and each of us paid a total of $23.
• Airport shuttle: If you need transportation to or from the airport, you’ll be looking at spending around $30 USD per person, depending on how you book it.

Food & drink costs in Iceland

Ahh, food – our favorite topic! I have some good news and some bad news for the category.

Let’s get the bad news out of the way… Eating at restaurants in Iceland can be very expensive. But the good news is that food is a category you can save a lot of money on (if you have some tips under your belt!).

If you’re on a budget, we’d recommend planning on cooking as many of your meals as possible and eating out for a handful of special meals. 

Insider Tip: We’ve rounded up the best Icelandic foods to try as well as which foods to skip to help you prioritize where you want to spend your money.

Restaurants in Iceland

Groceries for two people 

• $15-25 per day

• Snacks

If you like to indulge in the occasional ice cream cone or pastry, this will be another expense to consider. In total, we spent about $80 for two people over our 2-week trip on snacks. That works out to be about $5 for two people each day.

• Coffee

If you’ll be stopping at cafes for a daily cuppa joe, the cost can add up. Expect to pay around 500 ISK (just under $4) for a regular cup of coffee, and more for fancy drinks. 

• Alcohol

Alcohol isn’t cheap in Iceland. If you plan to indulge, here are some prices you can expect. A beer or glass of house wine will cost between 1000 -1500 ISK ($7.75 – $11.50), and a cocktail at a fancy restaurant can be as much as 2800 ISK ($22).

On our first trip to Iceland, we bought one bottle of alcohol at duty free and that was it (remember, we were on a very tight budget!). And on our second trip to Iceland, Katie was pregnant, so Ben’s indulgences were minimal.

Activities & entertainment costs in Iceland

One of the wonderful things about traveling in Iceland is that most of the major sights are totally free. You can easily travel around the country and not pay a single entrance or tour fee. In fact, on our first trip to Iceland, we did just that.

However, if you have a specific tour in mind, like glacier hiking or whale watching or soaking at a hot spring resort, you’ll want to be sure to include these costs in your overall budget.

Here are a handful of prices for activities around Iceland:

These numbers have been updated to reflect 2026 prices.

• Glacier Hiking (5-hour tour): 20,780 ISK($165)
• Silfra Snorkeling Tour: 17,400 ISK ($140)
• Rye Bread Tasting: 3,500 ISK ($30)
• Vik Lava Show: 6,600 ISK ($53)
• Whale Watching: 12,600 ISK ($100)
• Reykjavík Food Tour: 17,900 ISK ($145)
  • Psst! If you do the food tour (we highly recommend it!), use our exclusive discount code, TWS10 at checkout to get 10% off your tour.
• Blue Lagoon: 18,200 ISK ($145)
• Sky Lagoon: 13,990 ISK ($110)
• Secret Lagoon: 4,200 ISK ($35)
• Public Pool: 1,060 ISK ($8)
• GeoSea Thermal Baths: 7,490 ISK ($60)
• Hallgrimskirkja Church viewing platform: 1,400 ISK ($11)
• Guided Hike of Fagradalsfjall Volcano: 15,750 ISK ($125)
• Horseback Riding: 23,400 ISK ($186)

Note: The prices can fluctuate throughout the year. The rates reflect high season (summer) prices for 2026, but if you’re traveling at other times of the year, you may find less expensive prices. 

Our advice: Do some research into the activities listed above and determine which are your “must do” experiences and which you can skip (or save for your next trip!). It can be overwhelming to see all the amazing tours that are offered, but if you pick just a few, you can still stick to your budget.

Miscellaneous expenses

As much preparation and research that you’ll do before your trip, there’s a good chance you’ll have some incidental expenses along the way. Personally, when we make travel budgets, we always like to add a 10% “cushion” that will cover little expenses that we didn’t foresee.

Here are some things to think about adding to your overall budget:

Travel Insurance

Don’t forget to include travel insurance in your overall trip cost. We never travel without it, and would strongly encourage you to get a policy so that you’re covered in case something goes wrong.

Contrary to what you may believe, travel insurance isn’t necessarily expensive. In fact, for our 15-day trip to Iceland in 2021, our travel insurance policy cost just $45.76 for two people. (The price of your policy may vary depending on your needs.)

We have an entire article about travel insurance comparison which explains the ins and outs of choosing a travel insurance policy, but if you’re curious about which company we went with for our trip to Iceland, we’re sharing the details below:

Example Travel Insurance Policy

(this is the info for the policy we personally had)

• Number of people: 2
• Date: August 2021
• Duration: 15 days
• Destination: Iceland
• Company: Safety Wing
• Total cost: $45.76

Coverages: 

• Travel interruption up to $5k
• Travel delay up to $100 per day
• Lost luggage $3k
• Natural disaster up to $100 per day
• Medical emergencies (up to $250k)
• Emergency dental
• and more

WiFi Hotspot Rental

We’d highly recommend having some sort of WiFi hotspot device while in Iceland as it will make your life SO MUCH easier. Trust us. With these handy little gadgets, you can connect multiple devices to a WiFi signal. It’s pretty wonderful.

If you’re renting a campervan, chances are you may have a hotspot device incorporated into your navigation system (our campervan rental company included this). If not, you can certainly rent one. We had a built-in hotspot device but also rented a portable device we could bring with us on hikes, which turned out to be very helpful. The cost may vary from company to company, but ours was $12 a day.

Souvenirs

This will vary depending on what you get, as small knick knacks or food items can be found for less than 1000 ISK ($$7.75), but a traditional Icelandic sweater (lopapeysa), for instance, can be upwards of 25,000 ISK (nearly $200)

Bathroom fees

Some attractions have fees for the restrooms, which are typically around 200 ISK. For example, Studlagil Canyon where it costs 230 ISK to use the restroom, even if you’ve already paid the overnight camping fee! The good news is, restroom fees can be paid using a credit card in Iceland. During our 2-week trip, we only had to pay for one bathroom (because pregnant Katie was desperate!).

Shower fees at campgrounds

Many campgrounds have free showers, and we tried to only choose campgrounds that had this included in the overall cost. However, we did encounter one campground where showers were an extra charge of 600 ISK ($4.50) for 6 minutes of hot water.

Grand total Iceland trip cost

Using the information from the categories above, you should have a really good idea of how much to budget for your trip to Iceland. 

Consider how you plan to travel as well as the length of your trip. And don’t forget to include travel insurance and money for incidentals along the way.

Everyone’s budget will look different. We’ve traveled to Iceland a few times, and our overall expenses have varied drastically. Both of our Iceland trips were incredible – albeit very different experiences.

Budget trip

On our very first trip to Iceland, we were traveling on a teensy-tiny budget and managed to spend just about $75 per person per day ($150 per day total). We camped in a tent, didn’t eat at a single restaurant, and only did free activities.

Our advice: If you will be watching expenses very carefully and are planning to forgo most paid activities, we’d recommend budgeting $100-$150 USD per person per day in 2026.

Moderate trip

On our most recent trip to Iceland, we had a bigger budget to work with and spent just about $200 per person per day (a total of $400 per day for both of us).

This time, we rented a campervan, went on a handful of once-in-a-lifetime tours, ate a few meals at splurge-worthy restaurants, and soaked in both free and paid hot springs. That said, we did watch our spending, and could have easily spent more (it’s not hard in Iceland!).

Our advice: If you will be traveling with a middle-range budget – watching your spending but also partaking in some bucket list experiences – we’d recommend budgeting $150 – $250 USD per person per day. 

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Iceland map: Our favorite spots!

Want to upgrade your experience in Iceland?

More resources for planning your Iceland road trip

Don’t miss these other Iceland itinerary planning resources…

Road trip planning tips for Iceland

Driving in Iceland may be a bit different than what you’re used to at home, so we’re going over our top tips for making your Iceland road trip as smooth and care-free as possible. 

How to Plan the Ultimate Iceland Road Trip

Campervan rentals in Iceland

We also put together a HUGE Iceland campervan rental guide with tons of insider tips and advice for choosing the best campervan rental for you. Make sure to give it a read before booking your trip!

Best Campervan Rental in Iceland: Our Top Picks & Honest Advice

Iceland camping guide

Regardless of which type of vehicle you rent, if you plan on camping in Iceland, you’re going to want to read this article! It’s filled with essential tips, what to expect at campsites and a round up of our favorite tried-and-true campsites around the country.

What I Wish I’d Known Before Camping in Iceland (+ campsites we loved!)

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Plan your trip to Iceland

We have TONS of resources on travel in Iceland and how to make the most out of your trip. Check out our Iceland Homepage for all the answers to your most burning questions, or read some of our favorite articles below.

• Check out all of our top recommendations for things to do in Iceland. 
• Read up on Icelandic foods so you know what to try and what to skip.
• Save this list of cool Iceland Airbnbs for when you’re ready to book your accommodation. 
• And don’t forget camping in Iceland is one of the best ways to save money!
• You’ll want to keep this guide handy if you plan on driving Iceland’s Golden Circle. 
• Read up on all the actually cool things to do in Reykjavik. 
• Be sure to download these essential Iceland travel apps before your trip!

Don’t miss your chance to grab our Iceland packing list!

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We want to hear from you!

We hope this article gave you a clear answer to the question: Exactly how expensive is Iceland!? Do you have any more questions about your Iceland travel budget we didn’t cover in this article? Please leave your comments below and we’ll do our best to get back to you!