Iceland on a budget
Iceland is expensive, but it does not have to be outrageous. The biggest savings come from when you travel, where you sleep and how often you eat out.
Compare Iceland car rentals
See prices for 2WD, 4x4 and campervans for your travel dates.
Compare rental carsPick the right season
April–May and September–October are the sweet spots: lower prices, fewer crowds and still-decent weather. Winter is cheapest but daylight is short. July and August are the most expensive months for rooms and cars.
Sleep cheaper
- Hostels and guesthouses are usually half the price of hotels.
- Campsites with your own tent or campervan keep costs very low in summer.
- Stay in Selfoss, Hveragerði or Borgarnes instead of Reykjavik.
- Book early — the cheap categories sell out first.
See our full guide to budget accommodation in Iceland.
Eat from supermarkets
A restaurant main course can easily cost 4,000–6,000 ISK. Supermarkets like Bónus, Krónan and Nettó are much cheaper. Self-cater breakfast and lunch, buy snacks before road trips and treat yourself to one restaurant meal a day if you want to.
Free and cheap things to do
- All the major waterfalls, beaches and viewpoints are free.
- Local geothermal pools cost a fraction of the Blue Lagoon.
- Hiking is free; many trails need no guide.
- Reykjavik walking, harbour and sculpture walks cost nothing.
Transport savings
A small car is cheaper than a 4x4 and enough for the Ring Road in summer. Share fuel costs with travel partners. If you only have a few days in Reykjavik, skip the rental car and use airport coaches plus day tours.
Sample daily budget
| Item | Budget per person |
|---|---|
| Hostel or guesthouse | 12,000–20,000 ISK |
| Supermarket food | 4,000–6,000 ISK |
| Car share + fuel | 5,000–10,000 ISK |
| One paid activity | 10,000–20,000 ISK |