Iceland Trip Cost Guide: What I Spent in 4 Days (Solo Travel)

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Is Iceland expensive? How much does a trip to Iceland actually cost? Figuring out your Iceland travel budget can be tricky, so I want to make this process as painless as possible by providing real numbers you can set realistic spending expectations for your upcoming trip.

For this Iceland travel cost breakdown, I’ve hoarded all my receipts from my 4-day trip, and here’s how much it cost. 

Since I’ve visited four times, I’ve also included other fun facts and helpful Iceland travel tips sprinkled throughout.

Note: Your Iceland budget breakdown may look different from mine depending on your trip length, needs, and interests. Nevertheless, this is a good jumping off point for estimating your travel budget.

I wish I had actual numbers to work with when I planned my first trip to Iceland in 2016.

Despite the high cost of living, Iceland is brimming with potential for fun and adventure. I’m confident that with a little financial planning, you’ll have a blast visiting one of my favorite places in the world.

➡️ What would your perfect Iceland trip look like? Seven days on the South Coast? A mix of adventure and rest? Tell me, and I’ll build it for you. Learn more about my Iceland custom itinerary planning.

Cost of Visiting Iceland: 4-Day Iceland Vacation Cost Breakdown

Before we get started, it’s important to share context so you understand my travel style and why I spent accordingly.

Here’s what you should know:

• I visited Iceland on a tight budget in Fall.
• Instead of renting a car, I booked transportation to/from the airport and group tours. This means I do not have any road trip experience.
• I traveled solo and stayed at hostels.
• Seeing the Northern Lights wasn’t possible, but is very high on my Iceland bucket list.

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1. Round-Trip Direct Flights from NYC + Hostel: $562 USD

I purchased my flight and accommodation package six months ahead of time on Expedia and redeemed a $25 Expedia+ coupon with all my accumulated points.

I flew with Delta Air Lines on a direct flight and stayed at Loft Hostel, one of Reykjavík’s top-rated hostels.

Although hostels in Iceland aren’t as cheap as in other parts of Europe, they’re still a cost-effective option.

If hostels aren’t your thing, search for hotels and guest houses in Reykjavík.

Best Hostels in Reykjavík

Looking for the best accommodations in Reykjavík?

Here are my top picks for hostels and mid-range hotels that cater to different preferences and needs.

Whether you’re looking for a vibrant party atmosphere, a productive work environment, or a relaxing stay, these recommendations have got you covered.

• Best Overall Hostel in Reykjavík – Loft HI Eco Hostel
• Best Hostel For Fun Party Atmosphere in Reykjavík – Kex Hostel
• Best Hostel For Getting Work Done in Reykjavík – Bus Hostel

Best Mid-Range Hotels Reykjavík

• Best Hotel For Shopping – Sand Hotel by Keahotels
• Best Hotel For Proximity to Downtown Reykjavík – Fosshotel Rauðará
• Best Hotel For Relaxation in Reykjavík – Hotel Borg by Keahotels

Tips For Finding Affordable Accommodation in Iceland

If you’re searching for budget-friendly accommodations in Iceland, think about staying in hostels, guesthouses, or vacation rentals instead of hotels.

Booking your stay well ahead of time can also score you better deals.

Lastly, keep an eye out for vacation packages that bundle flights, hotels, and throw in extras like tours or car rentals.

2. Shuttle Bus to/from Keflavík International Airport: $32 USD

Flybus is one of the most affordable ways to get to Reykjavík from Keflavík International Airport.

The bus ride takes 45 minutes, and there’s free Wi-Fi onboard.

You can order your tickets at the counter or confirm your booking online (recommended for the most savings).

Departures are scheduled 25-45 minutes after arriving flights, so even if you arrive late at night or early morning, there’s always a bus available.

If your flight is late, they will wait.

There are two main drop off options:

1. Flybus+, which drops you off at or near your accommodation
2. Flybus, which drops you off at the BSÍ Bus Terminal in the city center

➡️ Purchase bus tickets online for departures to/from the airport. Booking airport transfers in advance is a stress-free way to start and end your trip.

3. Average Daily Food Cost: $60-$105 USD

What’s the cost of food in Iceland?

Even though I saved money on breakfast (included in my hostel stay), I suggest budgeting $20-$35 USD per meal.

On the other hand, my roommates bought a lamb stew for $80 USD, so keep that in mind too.

The cheapest lunch I had cost $15 USD.

The most expensive dinner was $34 USD.

For granular food prices – grocery stores, restaurants, and bars – see my Iceland food prices guide.

How much to tip in Iceland?

Tipping is optional in Iceland.

Icelanders don’t tip because it’s already included in the price and taxes.

Feel free to tip your server or bartender if you feel they went above and beyond, but there’s no obligation or expectation.

You may see tip jars in coffee shops, but you don’t have to tip unless you want to.

More Money-Saving Tips in Iceland

Remember that you don’t need to buy bottles of water in Iceland. The water is pure, and you can get it free anywhere.

Press play to listen to this podcast episode, where I share even more tips for saving money in Iceland.

Listen to this episode on Apple Podcasts and Spotify.

4. Average Activity Cost: $120 USD

Iceland has so much to offer, especially if you’re looking for adventure.

There are waterfalls to walk behind, glaciers to climb, and you can even go inside a volcano or snorkel between shifting tectonic plates. If you’re feeling really adventurous, try extreme motorsports like formula off-roading. 

Things To Do in Reykjavík

• Hallgrimskirkja Church: $10 USD
• Admission to Vesturbaejarlaug swimming pool: $8 USD
• Tip for CityWalk Reykjavik walking tour: $12 USD (set your own price)

CityWalk Reykjavik: Free

CityWalk Reykjavik offers free walking tours in Reykjavík. They also lead street food walking tours and private tours. The free “History and Culture Walk” introduces the city, Icelandic culture, and history.

Best of all, the tour guides are witty Icelandic historians.

During the tour, you’ll walk through the most historic parts of town, including the oldest neighborhood and cemetery.

I would have missed so many hidden gems if I skipped this tour.

Set your price and tip in any currency at the end of the tour.

Average Day Trips from Reykjavík: $150 USD

Looking to explore Iceland without the hassle of extensive travel planning?

Day trips offer a convenient and stress-free way to experience the country’s natural beauty and attractions.

Whether you’re based in Reykjavík or in other major hubs, day trips let you explore with ease, making the most of your time.

Day trips are one of the best ways to explore more of Iceland, beyond the capital.

Here are the day trips I booked and how much they cost:

• Horseback Riding: $106 USD 
• Iceland’s South Coast bus tour: $138 USD 
• Snorkeling at Silfra (including photos): $205 USD

If you want to see Iceland’s landscape, it’s worth visiting the countryside. 

Lots of people recommend renting a car in Iceland and exploring the Ring Road, for example, but taking a guided tour was informative, stress-free, and convenient. 

I would have missed so much if I were on my own!

For example, I booked a last-minute South Coast sightseeing tour that took me to waterfalls, black sand beaches, small towns, and a glacier tongue.

The Golden Circle is another popular day trip from Reykjavík, but I recommend saving that for future trips to Iceland.

To appreciate Iceland’s astounding natural wonders, the South Coast of Iceland is my top recommendation for first-time visitors.

➡️ Here’s exactly how I saved money on Iceland tours. Seriously, no one is talking about these little-known money-saving hacks! 🤫

5. Average Daily Alcohol Cost: $18 USD

Getting a drink or two in Iceland adds up quickly. A beer costs roughly $11 USD.

Loft Hostel has one of my favorite bars in Reykjavík. It offers a variety of Scandinavian beers, and on Fridays, you can jam out to live music.

The rooftop patio is also a great place to scope out the city skyline.

Total Iceland Trip Cost For Four Days

How much does it cost to go to Iceland for four days?

Total Cost: I spent $1,240 USD as a solo traveler.

Below is a chart breaking down my Iceland travel expenses:

Travel Expense	Average Cost (USD)
Flight + Accommodation	$562
Shuttle Bus	$32
Food	$112.50 per day
Activities	$150 per guided excursion
Alcohol	$12 per dink

I am relieved I decided to spend only four days in Iceland.

Considering a longer trip? The more time you spend in Iceland, the more you’ll pay.

An average trip to Iceland costs approximately $300 to $400 daily, excluding flight, car rental, and gas.

Nevertheless, I have no financial regrets whatsoever about my trip. I’m happy I got to visit one of the top destinations on my travel wish list.

Would I go back? Ugh….duh! I’m already planning my fifth trip.

How Much Should You Expect To Spend in Iceland?

Iceland is one of the most expensive countries in the world. 

Compared to many other destinations, you can expect to pay more for food, accommodation, tours, and activities.   

Based on my four trips to Iceland, the average trip for budget to mid-range travelers costs between $300 and $400 per person per day, including budget-friendly accommodation, meals, and guided group tours around the country.

This does not include flights, car rentals, or gas.

Here is a chart detailing general travel expenses in Iceland.

Travel Expense	Average Cost (USD)
Accommodation	$160 – $220 per night
Shuttle Bus	$40 round-trip per person
Food	$112.50 per day
Activities	$150 per guided excursion
Car Rental	$120 per day
Shopping	$200
Alcohol	$15 per dink

Factors Influencing Differences in Travel Budgets to Iceland

There are a bunch of things that can affect how much you spend when traveling to Iceland, including:

• When you travel (seasons, holidays, and events)
• Where you stay, whether it’s budget-friendly hostels or swanky hotels
• What and where you eat (cheap eats vs upscale multi-course restaurants)
• How much you do and what it costs
• How you get around
• Currency exchange rates
• Plus, your overall travel style and preferences all play a part.

How To Save Money In Iceland

Although visiting Iceland isn’t the cheapest, it’s still worth it. With that in mind, here are some quick pointers to help you and your wallet make the most of your Iceland vacation.

Continue reading or listen to this podcast episode to learn how to save money while traveling in Iceland.

1. Avoid summer travel and visit during the shoulder seasons, Fall and Spring.
2. Shop Duty-Free. While you can buy alcohol at a local bar or restaurant, alcohol is pricey in Iceland because of taxes. To make matters even worse, alcohol taxes are levied based on the volume of alcohol in a drink. The first piece of advice is: buy your drinks at the airport. If you’re flying into Keflavik International Airport, Iceland’s main airport, stop by Duty-Free Iceland. It has a wide selection of alcoholic and non-alcoholic beverages from Argentina to New Zealand and almost anywhere else in between. Keep in mind that each traveler is only permitted six units of alcohol. If it sounds confusing, use this alcohol allowance calculator to see how much beer, wine, and liquor you can purchase at the airport.
3. The second piece of advice is to make the most of local happy hours which you can find at various bars around town.
4. Bring a refillable water bottle. While you can buy bottled water in Iceland, Iceland’s tap water is unbelievably pristine, safe, and never chemically purified. Iceland’s tap water is reported to originate from springs and mountains that are naturally purified through molten rocks, which not only cleanse the water of any bacteria or chemicals but also add minerals and nutrients. So why spend your coin on some of the world’s best water when you can get it from the tap for free?
5. Ditch cash. Like most countries, Iceland prioritizes plastic, with no need for ATM visits and fees.
6. Claim your tax refunds through tax-free shopping. Tax-free shopping is a way to save money when traveling to an expensive destination like Iceland. For more on how to claim your tax refund, check out my article, “Tax-Free Shopping in Iceland,” on how to save money and receive a tax refund.
7. Unlike the U.S., where tipping can go a long way, tipping is not necessary in Iceland. Gratuity is already included in the bill, so while tipping isn’t required, it is always appreciated.
8. When looking for affordable items to stock your fridge, Iceland offers several budget-friendly grocery shopping options. Among these, I recommend Bónus and Krónan for household essentials, food, drinks, and anything else you might need to enjoy your stay in Iceland.
9. Prioritize local swimming pools over fancy hot springs. Here, you’ll meet locals and partake in their traditions and customs while saving money!
10. January and February are the cheapest months to fly to Iceland. July is typically the most expensive.

I shared my favorite Iceland budget hacks on the Bon Voyage Besties Podcast — tune in for even more practical tips on traveling to Iceland without breaking the bank.

How Expensive is Iceland Relative to Other Countries?

According to Numbeo’s Cost of Living Index by Country, Iceland is the sixth most expensive country, followed by the Bahamas, the U.S. Virgin Islands, the Cayman Islands, Switzerland, and Bermuda.

Money in Iceland

Icelandic Króna (ISK) is Iceland’s official currency.

How much cash should you bring to Iceland? Good question!

Since debit and credit cards are widely accepted, even for small purchases or in the most remote places, you can travel to Iceland with peace of mind, knowing you don’t need cash.

You don’t need to exchange currency before your trip. However, there are plenty of ATMs at the airport, in Reykjavík, and conveniently located around the island.

A good rule of thumb is to have around 10,000 to 20,000 ISK ($75-$150 USD) with you in cash, but then again relying primarily on cards is good too. In all my trips to Iceland (three in total), not carrying cash was never an issue.

Helpful Tip: Foreign transaction fees can add up quickly. Bring credit cards with no foreign transaction fees to avoid unnecessary charges and save money.

Read Next: Financial Things To Do Before Every Trip

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Tipping Culture

Should you tip in Iceland? When should you tip, and how much? 

In Iceland, tipping is not necessary. When eating out for example, the bill already includes a service charge. Plus, unlike workers in the U.S. or other parts of the world, Icelanders earn a living wage.

Feel free to tip for exceptional service. Round up or leave around 10%.

Throughout Iceland, you may notice tip jars in cafes and bars. While this trend grows, especially in touristy areas, you should know tipping isn’t a big part of Icelandic culture.

Language

Icelandic is Icelandic’s official language, but English is also widely spoken. Most people in Iceland speak English, especially the younger generations, so if you’re an English speaker, you shouldn’t have any problems communicating in Iceland.

Here are some basic Icelandic phrases:

• Hello – Halló
• Yes – Já
• No – Nei
• Thank you – Takk
• Goodbye – Bless
• Good morning – Góðan daginn
• Good night – Góða nótt

Plan Your Iceland Trip: The Ultimate Iceland Itinerary

Alright, now that we’ve got all the number crunching out of the way, it’s time to plan your epic Iceland adventure.

➡️ What would your perfect Iceland trip look like? Tell me, and I’ll build it for you. Learn more about my Iceland custom itinerary planning.

👉🏾 Next, check out the ultimate guide for spending 5 days in Iceland.

Whether you’re a nature lover, a photography pro, or just someone on the hunt for a unique travel experience, this itinerary has everything you need.

Explore breathtaking landscapes, soak up Icelandic culture, and make the most of your five days in this incredible destination.

Continue planning your Iceland vacation. Read these Iceland articles next:

How to Save Money Duty-Free Shopping in Iceland

Top Blue Lagoon Alternatives

Best of Iceland South Coast: Where To See Glaciers and Secret Waterfalls