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Reykjavik on a budget: how to do it well
Short answer
Iceland on a budget is possible but never cheap: allow about ISK 26,000 per person per day, with about ISK 10,000 for a shared bed, ISK 6,000 for food, ISK 4,000 for pools or parking and ISK 6,000 for a share of a hire car and fuel. Self-catering, free landscapes and travelling in a group make it work.
A realistic daily budget
| Budget | Mid-range | Comfort | |
|---|---|---|---|
| Bed (per person, sharing) | ISK10,000 | ISK18,000 | ISK40,000 |
| Food & drink | ISK6,000 | ISK12,000 | ISK25,000 |
| Sights & tickets | ISK4,000 | ISK12,000 | ISK25,000 |
| Local transport | ISK6,000 | ISK9,000 | ISK18,000 |
| Per person, per day | ISK26,000 | ISK51,000 | ISK108,000 |
Approximate 2026 prices, two people sharing a room. From our Reykjavik day-cost table.
Free things to do
- Walk inside Harpa, the glass concert hall on the harbour.
- Walk the seafront path to the Sun Voyager sculpture.
- Watch Strokkur erupt every 5-10 minutes at Geysir.
- See Gullfoss, the two-step waterfall in a canyon.
- Walk behind Seljalandsfoss and climb the steps at Skógafoss (parking fees may apply).
- Hunt the northern lights from dark spots outside the city, September to April.
Cheap eats
- Hot dog (pylsa) from a stand: roughly ISK 700-900.
- Supermarket picnic from Bónus or Krónan (skyr, bread, smoked fish): about ISK 1,500-2,500.
- Lamb soup (kjötsúpa) in a café: roughly ISK 2,500-3,500.
- Fish and chips or a bowl at the Grandi harbour food hall: roughly ISK 3,000-4,000.
- Bakery cinnamon roll and coffee: roughly ISK 1,200-1,800.
Where to sleep for less
Budget travellers stay in hostels in central Reykjavik or guesthouses outside 101, a short bus ride or walk to the centre, where doubles cost about ISK 18,000-28,000 and dorm beds less. Campsites are a cheap summer option for those with gear or a campervan.
Getting around cheaply
Walk the centre and use Strætó buses. From Keflavík airport (50 km), the Flybus takes about 45 minutes for around ISK 3,500-4,500, much cheaper than a taxi. Outside the city, share a hire car and fill up at self-service stations (card and PIN needed).
A sample budget day
- Morning: Hallgrímskirkja (tower lift a small fee) and the rainbow street.
- Lunch: hot dog and skyr from a supermarket (about ISK 1,500).
- Afternoon: Harpa and the Sun Voyager (free), then the National Museum or a walk around the Old Harbour.
- Evening: swim at Vesturbæjarlaug (about ISK 1,400) and a self-cooked dinner, with a hostel bed.
- Total: about ISK 26,000 including a share of a hire car on touring days
More ways to save
- Bring a reusable bottle and thermos: tap water and hot drinks from your hostel save a lot.
- Choose accommodation with a kitchen.
- Use public pools as your 'lagoon' most days and pick one lagoon visit.
- Book cars and rooms early for summer; prices rise as availability falls.
- Check for parking fees at major sights and pay via the app to avoid fines.
- Do the Golden Circle anticlockwise in a shared car rather than a coach tour.
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Common questions
Can you do Iceland on a budget?
Yes with self-catering, hostels, shared car hire and free sights, but expect it to cost more than most of Europe.
Is the Blue Lagoon worth it?
It is a classic, but the Sky Lagoon or public pools give a similar soak for less. Check whether volcanic activity has affected access.
How do I get from Keflavík airport cheaply?
Take the Flybus, about 45 minutes for around ISK 3,500-4,500.