So How Expensive Is Iceland Actually?

Iceland has a reputation of being expensive AF. A fact that puts a lot of people off from even visiting Iceland in the first place.

So I made it my mission to take note of every krona I spent on my 4 day trip to give you a glimpse into how expensive this gorgeous country actually is. Here’s the deets on the dollar:


Let’s start with the most important thing – food. How expensive is it to eat in the land of fire and ice?

KEX Hostel, Reykjavik

Breakfast tally-up:

Gourmet buffet breakfast at KEX hostel =1800 krona / £9.95*

Croissant with butter, jam and cheese and a cappuccino at Reykjavik Roasters = 1220 krona / £6.75*

Strawberry smoothie at the Blue Lagoon = 950 krona / £5.25*

Average cost of breakfast = 1323 krona / £7.31*


Lunch tally-up:

A hotdog with all the toppings and sauces at the famous Bæjarins Beztu Pylsur stand = 420 krona / £2.32*

A pizza and a bottle of water at the airport = 2280 krona / £12.60*

Beetroot and ricotta salad at KEX Hostel = 1950 krona / £10.78*

Average cost of lunch = 1550 krona / £8.57*

KEX Hostel, Reykjavik

Dinner tally-up:

A burger and chips at Laundromat Cafe with a small glass of red wine = 3690 krona / £20.40*

Mushroom ravioli and a small lager at Rosso Pomodoro = 3840 krona / £21.22*

Burger and chips at KEX Hostel and a large beer = 3540 krona / £19.55*

Average cost of dinner = 3690 krona / £20.39*


Drinks and snacks tally-up:

Small kraft beer at Miscellar and friends = 1000 krona / £5.52*

Olives at the bar in KEX = 550 krona / £3.04*

Cup of tea and giant cookie at Babalu Cafe = 1040 krona / £5.75*

Large bottle of water from 1011 = 496 krona / £2.74*

A cup of tea at Stofan Kaffihus = 490 krona / £2.71*

KEX Hostel, Reykjavik


I stayed at KEX Hostel which from my review you may notice is quite upscale for a hostel. I also had a private room all to myself so the price was actually pretty steep for a backpacker at 17,900 krona per night, a splurge at £98.92* a night. But the dorms are a lot more affordable at 3,900 krona per night for a 16 bed dorm, aka £21.55*.

KEX Hostel, Reykjavik


So what about all the fun stuff? How much did that set me back?

Attractions and Tours Tally-up

Entry up the Hallgrímskirkja church to see the beautiful views of Reykjavik = 900 krona / £4.97*

Blue Lagoon trip with Viator including entrance fee and return journey from hotel = £55.77

Olgerdin Brewery tour with Viator including hotel pickup = £36.33

Horseriding and Golden Circle trip with Reykjavik Excursions = 22,500 krona / £124.34*

Souvenir mug from Gullfoss = 1140 krona / £6.30*

Eldhestar Horse Farm, Iceland


So food-wise, you’re looking at £38.98 a day for 3 courses and a cup of tea. Which ok yes is a bit steep for a backpacker but that’s an average and it’s totally possible to do it cheaper. If you go for the cheapest option of the 3 courses and forego the tea, you’re looking at £27.12. Still not the cheapest place ever but more affordable than I thought it would be tbh.

The accommodation in a dorm room is also completely doable at £21.55 a night, similar prices to Australia hostels if I remember rightly. And for tours, ok the horseriding add-on to the Golden Circle really does hike the price up but that is a total splurge. The Golden Circle trip alone is a lot cheaper.

Overall, Iceland can be expensive at times but I completely think it’s possible to do it on the cheap, you just need to pack in as much as possible in a few days to make the most of it, so you don’t blow the budget!

What do you think of Iceland prices – to omuch or doable? Keen to know your thoughts. Let me know in the comments below or tweet me @HeelsInBackpack!

View from above - Reykjavik

*All prices according to on 18.05.16

6 thoughts on “So How Expensive Is Iceland Actually?

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  • 4th March 2017 at 8:25 pm

    So fast forward to Feb 2017. Our experience for one week in Reykjavik is the pricing quoted above have easily increased by 30% more or more. I think it is now seriously expensive to the point that while we would love to re-visit it’s highly unlikely we will unless the GB pound improves or prices drop. Possibly Iceland is pricing itself out of the tourist market ?

    • Kara // Heels In My Backpack
      4th March 2017 at 8:58 pm

      Oh no that’s such a shame! This was from April 2016 and I did think the the drop in the pound might affect Iceland travel. Let’s hope it picks up, right… :/

  • 20th March 2017 at 11:43 pm

    Great post with detailed info! I never think to record everything like this!
    Myself and my boyfriend did a trip to Iceland in September 2016 for just over 2 weeks. We rented a small campervan and took to the roads. It was great to have freedom to do what we wanted, we didn’t splash out on tours really except for a horse riding half day, whale watching and the Blue Lagoon. Between us we spent about €5000! We were cooking in our van some nights and eating out for others. It’s pretty expensive either way.
    That being said, it was a wonderful experience and I don’t regret it one bit! Happy hour in Reykjavik helps with the cost of beers! 😉
    P..s We may have gone a bit overboard with the beers.. what can I say, we’re Irish!

    • Kara // Heels In My Backpack
      21st March 2017 at 9:01 am

      Yeah I think that was my takeaway from it. Some things were quite expensive but it was worth it for the experience – like horse riding and the Blue Lagoon. Such an amazing country! It’s ok, I’m Booze Britain over here haha x


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