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Iceland is a dream trip for many, but those who opt for affordable travel trips like us (Gemma and Craig) may be put off by the sky-high prices. We’re here to show you how to manage your Iceland budget, from car rental to culinary options, accommodation to activities, so you can enjoy a holiday in Iceland without having to remortgage the house. So, how much is a trip to Iceland?
» Don’t miss our guide to four days in Iceland
Iceland Budget
We took a road trip from Keflavik to South Iceland, then to Reykjavik via the popular Golden Circle.
This trip lasted four full days, with a morning drop-off on the fifth.
Although we like to socialise during trips, we knew this was not a drinking holiday.
Our focus was getting outdoors and seeing what Iceland’s landscape had to offer with a celebratory beer/wine at the night’s end.
We’re not really foodie travellers so not eating out was an easy sacrifice to make.

How Much Does it Cost To Go To Iceland?
Budget flight carriers like EasyJet and Ryanair fly to Keflavik Airport in Iceland from the UK for under £100.
Initially, our flights were priced at £128 for two (July); however, changing our departure date to September bumped the cost up to £208 overall.
Although it was annoying that we had to fork out more (our fault/work commitments), the off-season worked out better as fewer people were on the road.
The Golden Circle was still incredibly busy, and I can’t imagine what July/August is like at the typical tourist spots such as Geysir and Gullfoss waterfall.
We checked in bags for an additional £49.
A few days before flying, I checked the flight price for the day we were leaving. It was sitting at £36; the week after, it was £120.
If you see a rate you think is decent, just book it.
Avoid going in and out of the website as this shows the search that people are interested and can increase prices.
Icelandair offers extended stopover trips in Iceland.
This is a great option because not only can you break up a long flight, but you can also experience Iceland on the way!
Going in September meant we just missed the chance to see the Northern Lights in Iceland.
Read our friend Valerie’s guide on the best times to see them here.
Flights: £257.
» You may also like our guide to planning your Iceland honeymoon
Car Rental in Iceland
If you are happy with a few dents and scratches, you can hire a cheap car in Iceland.
I used to work as a check-in assistant for Avis Rent a Car; my advice is to take a car with a few scratches!
The car rental depots at Keflavik Airport aren’t actually at the airport itself.
Companies pick you up and other renters at the airport and drop you off at the car depot for a small additional fee.
This process can take 40 minutes to one hour, so consider this when planning.
A percentage of the total will be taken as a deposit when you book, and then the rest will be paid upon arrival or taken off the card at the end of the trip.
Check the car thoroughly before leaving (inside and out).
We later noticed no alarm to let you know you’ve left the lights on and did so frequently.
Luckily, others noticed and told us. I always pay for the additional car insurance to bring the excess down.
Even if you are a great driver, others aren’t. Look out for tourists stopping in the middle of the Ring Road, others turning at the last minute, and people driving at 20. Driving in Iceland can test your patience.
Car rental: £270.
» Don’t miss our list of essential road trip packing items
How Much is Gas in Iceland?
Gas/petrol/fuel is expensive in Iceland, and most gas stations in the South of Iceland do not accept cash because Iceland is a very card-friendly country.
We filled the tank with unleaded fuel (not diesel) three times during our trip.
Some gas stations are big with cafes attached; others are self-service and unmanned pump-only stations.
This handy calculator will help you determine how much you might spend.
Fuel: £244.

Accommodation
Hotels, Airbnb and even hostels are expensive in Iceland.
Rooms are cosy and clean but nothing spectacular.
The best tip I was given when planning the trip was to look for accommodation with kitchens for cooking.
You won’t be surprised to hear that accommodation is more expensive in the high season in June-August.
We stayed at the HI Höfn on night one, which has an impressive kitchen space, in the Eyjafjallajökull area (that’s the volcano that caused the ash cloud in 2010) for night two and three, and at an apartment in Reykjavik on the last night.
Accommodation cost: £484
Food in Iceland
Eating out is expensive.
For example, one small portion of mozzarella sticks and fries (we shared) came to £11 at a cafe by the side of the road in South Iceland.
We treated ourselves to dinner in Reykjavik.
We chose Hlemmur Mathöll because there are a variety of restaurants under one roof.
I went for the £10 noodles, and Craig had a burger with crisps (not chips) for £19.
Hot dogs are popular.
You can buy them at gas stations to keep costs down, but we have never tried them.
Bonus Supermarket
Bonus supermarket is the first stop you should make on your road trip.
Store cupboard goods are relatively cheap, but other items like fresh meat and some vegetables can be expensive.
One pepper cost £2.50,
We bought pasta, tinned tomatoes, cheap pot noodles, tofu, noodles, satay sauce, vegetables, salad, sandwich meat, rolls and snacks for £52.
We topped up lunches and fruit on day three.
Food: £116.

Alcohol in Iceland
If you are looking for booze in Bonus, you are in the wrong place.
Anything over 2.25% is sold at the state-owned Vinbudin shops.
You can see where they are located here.
We bought two one-glass bottles of wine and three beers at Vinbudin totalling £17. Not bad!
We also bought a small bottle and a beer at our hostel, which was £12.50.
I saw the same small bottle for £13 at a restaurant/shop.
Some tourists buy at the airport before they collect their baggage.
We arrived late in Reykjavik, missing happy hour.
One glass of red was £10. The beer was cheaper at around £7.
The cheapest find – Mimosas at the airport, two for £5.
Alcohol: £85.50.
Activities in Iceland
Pretty much everything you want to see in Iceland is free.
Waterfalls, beaches, glaciers, geysers – free.
The majority of car parks at activities are free to use, but those that do charge accept cards only.
Highlights for us included:
Jökulsárlón / Diamond Beach

Reynisfjara Black Beach

Seljalandsfoss Waterfall

Hike to the DC Plane

Tours in Iceland
There are various tours throughout the country, including ice cave tours in Reykjavik, glacier treks in Skaftafell National Park, whale watching, and helicopter rides.
Joining a tour means you get local expert knowledge and the safety of support, but that comes at a price.
Naturally, this will add to the overall cost of your holiday.
Hot Springs in Iceland
One of the top things to do in Iceland is to visit a hot spring.
The most popular one is Blue Lagoon, but that comes at a cost from £75.
A cheaper alternative is the Secret Lagoon, which is around 38 degrees all year round, has changing facilities and a bar – £25.
You have to pay additional for towels.
There are several free pools/springs in Iceland, but not all are hot and looked after.
We visited Seljavallalaug, and it was pretty dirty; tourists ruined it.
Total £50.

So, How Much Is A Trip To Iceland?
- Flights: £257 (with added bag)
- Car rental: £270 (includes airport pick up/drop off)
- Petrol: £244 (ouch!)
- Accommodation: £484 (four nights in September)
- Food: £116 (eating out and food shop)
- Drinks: £85.50 (not cheap/not a drinking holiday)
- Activities: £50 (lots of free stuff)
- Travel insurance: already covered (check out our travel insurance review here).
Overall total (2 people): £1506.50 / Per person/per full day £370.

Is It Worth It?
Iceland is incredible; they don’t call it the land of fire and ice for nothing.
It really depends on whether you prefer to visit destinations where your budget can stretch, such as Bosnia and Herzegovina, Colombia and Nicaragua, or if you are happy to pay for unique experiences.

Final Words
I hope you found this Iceland budget guide useful as you plan your trip.
Payments made by card will most likely offer different rates depending on your bank and the going currency rates.
The prices above are rounded to the decimal.
We paid for our flights, car rental and accommodation and partnered with M&S Bank to see how far £400 worth of Krona can go in Iceland.
We were £95.50 over.
Note: M&S did not finance this article; this is the property of Two Scots Abroad.
If I were to do it again, I’d ditch the meal in Reykjavik and extend our time in the South of Iceland.
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