Iceland on a budget: how to do it well
Short answer
Iceland on a budget is possible but never cheap. A realistic minimum is about 26,000 ISK per person a day: 10,000 for a bed, 7,000 for food, 3,000 for sights and 6,000 for a share of a car and fuel.
A realistic daily budget
| Budget | Mid-range | Comfort | |
|---|---|---|---|
| Bed (per person, sharing) | ISK10,000 | ISK20,000 | ISK45,000 |
| Food & drink | ISK7,000 | ISK14,000 | ISK25,000 |
| Sights & tickets | ISK3,000 | ISK9,000 | ISK18,000 |
| Local transport | ISK6,000 | ISK9,000 | ISK14,000 |
| Per person, per day | ISK26,000 | ISK52,000 | ISK102,000 |
Approximate 2026 prices, two people sharing a room. From our Iceland day-cost table.
Free things to do
- Strokkur geyser, erupting every 5–10 minutes.
- Gullfoss, the two-step waterfall on the Golden Circle.
- Walking the Almannagja gorge at Thingvellir (parking fee applies).
- Reynisfjara black-sand beach and its basalt columns, from a safe distance.
- Diamond Beach, across the road from Jokulsarlon.
- The northern lights on dark, clear nights from about late August to mid-April.
Cheap eats
- Hot dog with crisp onions and remoulade: about 800 ISK.
- Lunch at the Hlemmur Matholl food hall in Reykjavik: good value for Iceland.
- Skyr from a supermarket for breakfast: a few hundred kronur.
- Supermarket picnic from Bonus or Kronan: far cheaper than any café.
- Lamb soup (kjotsupa) at a roadside café: often one of the cheaper hot meals.
Where to sleep for less
Budget travellers use hostels and guesthouses with shared bathrooms, from about 18,000–30,000 ISK a room, or campsites in summer. Book well ahead along the south coast, where beds are scarce in July and August.
Getting around cheaply
Take the Flybus or Airport Direct from Keflavik (about 4,000 ISK). For the countryside, a shared small rental car is the most practical; public buses exist but are infrequent outside summer. Organised day tours from Reykjavik are an option without a car.
A sample budget day
- Morning: Thingvellir walk (about 1,000 ISK parking).
- Lunch: supermarket picnic (about 2,500 ISK).
- Afternoon: Strokkur and Gullfoss (free), then the Secret Lagoon (about 4,000 ISK).
- Evening: cook dinner at a guesthouse kitchen (about 3,000 ISK).
- Total: about 26,000 ISK including a 10,000 ISK bed share and a share of the car.
More ways to save
- Plan a south and west route in a week rather than rushing the whole Ring Road, saving fuel and nights.
- Carry a refillable bottle and thermos; tap water and hot water are free.
- Pack food from Reykjavik supermarkets before heading to remote areas.
- Book lagoon slots and glacier hikes ahead to get standard prices.
- Visit in May or September for lower car prices with long enough days.
- Choose free waterfalls and beaches over paid attractions for most of the trip.
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Common questions
Can you visit Iceland on a budget?
Only relatively. Hostels, supermarket food, free sights and a shared car keep it to about 26,000 ISK a day.
How do I save on food in Iceland?
Shop at Bonus and Kronan, drink tap water and cook in guesthouse kitchens.
What is the cheapest way from Keflavik airport?
The Flybus or Airport Direct bus to Reykjavik, about 4,000 ISK and 45 minutes.