Cost of Living in Iceland
Iceland is consistently ranked as one of the most expensive countries in the world, largely due to its island geography and high reliance on imports. While geothermal energy keeps utility costs relatively low, residents typically face high costs for housing, groceries, and services.
Overview text is model-generated; see the note below.
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Monthly Cost Estimate
excluding rent
including 1-bedroom rent
Single person in Iceland. Totals are the sum of the category ranges below (low ends added together, high ends added together), so a real budget usually falls somewhere in between.
Cost Breakdown by Category
Housing & Rent
$1,600 – $2,400
Monthly rent for a 1-bedroom apartment in Reykjavik or smaller towns.
Food & Groceries
$650 – $950
Monthly grocery expenses and occasional mid-range dining.
Transportation
$120 – $250
Public transportation passes and fuel costs for personal vehicles.
Utilities
$140 – $220
Electricity, heating (geothermal), water, and high-speed internet.
Healthcare
$40 – $100
Public healthcare contributions and minor out-of-pocket fees.
Entertainment
$150 – $250
Gym memberships, cinema tickets, and social activities.
Build your own monthly budget
Starts at the midpoint of each estimate for Iceland. Type your own amounts to see your total and annual figure. Nothing you enter is saved or sent anywhere.
Estimate: $1,600 – $2,400
Estimate: $650 – $950
Estimate: $120 – $250
Estimate: $140 – $220
Estimate: $40 – $100
Estimate: $150 – $250
Yearly: $3,435 × 12 = $41,220. Excludes taxes, debt payments, savings, childcare, education, car ownership and one-off costs such as deposits or moving.
New to ranges? Read how to turn these estimates into a personal budget.
Comfortable Living
Estimated monthly spending for a comfortable lifestyle in Iceland, with regular dining out and leisure:
Including rent • Single person • Excludes income tax and savings • A separate model estimate, not derived from the category totals above
Frequently Asked Questions about Iceland
The first answer is calculated from the figures on this page. The others are model-generated text; answers that quoted older dollar figures are hidden so they cannot contradict the totals above.