How Much Does a 5-Day Trip to Iceland Cost? [Detailed Budget Breakdown]

Iceland is a dream destination for many travelers, but it’s also known for being quite expensive.

With the proper planning, though, you can adjust your trip to fit any budget—whether you want to save or splurge. But, to be transparent, it isn’t a budget-friendly vacation.

To help you plan your own trip to Iceland, here’s a detailed breakdown of what my 5-day trip to Iceland cost in July 2024.

We’ll cover everything from flights to car rentals, accommodations, food, and activities, along with tips on how to save money in Iceland.

Disclosure: This post may contain affiliate links, meaning I will get a commission if you decide to purchase through those links, at no cost to you. Thank you for your support!

Our 5-Day Trip to Iceland Cost Breakdown

How Much Do Flights to Iceland Cost?

Cost of Our Flights to Iceland = $908 per person

We flew Basic Economy with United Airlines, which typically doesn’t include a free carry-on item if you’re traveling within the United States.

However, for international flights, you’re allowed one free carry-on and personal item.

We got flights for $908 per person, and this is from flying out of the Midwest in the United States.

Also – can we talk about how frustrating it is that airlines charge for EVERY little thing these days!

I mean, I already paid $908 for this flight, but now they want another $50 just to choose a seat!

I guess my husband and I will be sitting separately, because I’m not paying extra for that too LOL 😂.

Do keep in mind that the cost of flights to Iceland will vary significantly based on the time of year you’re visiting, the airline you choose, how far in advance you book, as well as the airport from which you depart.

The green moss covered landscapes surrounding Kvernufoss waterfall and the surrounding stream that leads out from under it. — **Kvernufoss**

How Far in Advance Should You Book a Flight to Iceland?

To get the best deal on flights to Iceland, I recommend booking at least 3-6 months in advance.

This also gives you a head start on booking accommodations, which can fill up quickly in Iceland, especially during the popular summer months.

Personally, I am a big planner, so I booked our flights to Iceland about eight months in advance – but I don’t think it is necessary to do it that far out.

While last-minute flight deals occasionally pop up, they’re rare, and you’ll have more flight options if you book early.

Plus, booking later could make it harder to find available accommodations in the smaller towns like Vik.

I recommend signing up for fare alerts on Google Flights to monitor price changes on the flights you’re wanting to book. You’ll get notified via email whenever prices on your selected flights change.

If you’re traveling during peak seasons like summer or the holidays, booking even earlier is a good idea to hopefully get a better deal.

Aviasales is also a great resource for finding flight deals – featured below!

What is the Cheapest Month to Go to Iceland?

The cheapest time to visit Iceland is during the off-season, from November to April.

This period is considered the off-season due to the colder and harsher weather, icy road conditions that make driving rental cars more challenging, and some attractions being inaccessible due to the weather.

Additionally, daylight is much shorter—by December, there are only 4-5 hours of daylight, which can limit how much you can see in a day.

In contrast, summer offers nearly 24 hours of daylight, making it easier to explore, but it comes at a much higher cost.

During the off-season, not only are flights usually cheaper, but hotels and car rentals also tend to be more affordable. You’ll also enjoy fewer crowds, as there are significantly fewer tourists in the offseason.

If you’re hoping to see the Northern Lights, winter—particularly February and March—is the ideal time to visit.

You won’t see the Northern Lights in the summer since Iceland experiences 24 hours of daylight during this time.

However, if you’re on a budget, it’s best to avoid traveling to Iceland between June and August, when prices increase due to the high number of tourists.

Iceland’s peak season may offer better weather, road access, and daylight hours, but it comes with a higher price tag!

The basalt like columns providing a breathtaking backdrop behind the Svartifoss waterfall near Vik in Iceland. — **Svartifoss**

How Much Does it Cost to Rent a Car in Iceland?

Cost of Our Rental Car = $806 (5-day rental)

In my opinion, renting a car is 100% necessary to properly explore everything Iceland has to offer, especially if you want the freedom to drive through the country’s breathtaking landscapes at your own pace.

We rented a car through Lava Car Rental for $806, which covered a 5-day rental and included full protection insurance.

I highly recommend them. They’re located off-site from the airport, but they provide prompt pickup from the airport to take you a short distance to their rental center.

In my opinion, purchasing the full rental car insurance is a must in Iceland due to unpredictable weather and challenging road conditions like gravel roads and high winds.

While you could save money by opting out of insurance, it’s not a risk worth taking.

I usually do not purchase rental car insurance since my travel credit card, Chase Sapphire Preferred, includes it.

However, when I was researching for this trip, all the blog posts I read highly recommended purchasing rental car insurance in Iceland.

Since I was traveling internationally, I thought this was the best decision for my peace of mind.

I learned that the rental car coverage from my Chase Sapphire Preferred credit card doesn’t cover taxes on damages, which can be quite high in Iceland.

Given the potential for significant out-of-pocket expenses, I decided to opt for the extra insurance, and I do not regret that choice!

Tip: If you can drive a manual car, you’ll likely save some money, as manual rentals tend to be cheaper. Since no one in our group could drive a manual, we went with an automatic.

How to Get the Best Deal on a Car Rental in Iceland?

Book early: Car rentals in Iceland can book up quickly, especially during the summer months. Booking at least 3 months in advance will help ensure that you get a good deal. Closer to the time of your trip, prices tend to increase significantly.
Rent from an Off-Airport Local Company: In Iceland, it seems the best rental car experiences come from the local companies such as Lava Car Rental which is who we used. Some other good local companies are Blue Car Rental and Lotus Car Rental.
Choose a 2WD: Unless you plan to drive on Iceland’s rougher F-roads (which require 4WD), a smaller, more fuel-efficient car will save you money. Stick to a 2WD if your itinerary is mostly paved roads like the Ring Road. This 4-Day Iceland Itinerary can all be done on roads with a 2WD car.
Choose a Manual Car: When I was in the process of finding a rental car in Iceland, I noticed the manual cars were cheaper than the automatic cars. So, if you know how to drive a manual car, that could save you some money.

➡️ Check out my blog post where we discuss even more Iceland rental car tips!

How Much Does Gas Cost in Iceland?

Total We Spent on Gas = $205

Gas in Iceland is significantly more expensive than in many other countries.

During our trip, we spent $205 on gas, and we did drive a significant amount around Reykjavik down to Vik and other popular spots in southern Iceland like Diamond Beach.

Depending on how much driving you do, gas costs can add up quickly.

To save on gas, it’s a good idea to:

Plan to fill up in the larger towns like Reykjavik, Selfoss, or Vik, where gas prices tend to be lower than in the more remote areas. It also can be harder to find a gas station in the more remote areas.
Choose a smaller car with better fuel efficiency, if you don’t need a 4WD vehicle and not planning to drive on any F-roads (which require a 4WD)

The dark black sand at Reynisfjara Beach in Vik in Iceland surrounded by the blue ocean water and towering dark rocks and cliffs. — **Reynisfjara Beach**

How Much Does it Cost to Stay in Iceland?

Total Cost of Our Accommodations in Iceland = $1,610 for 5 nights

The accommodations in Iceland range from budget hostels to luxury hotels, but even the mid-range options can be quite pricey.

For our 5-day trip, we stayed in Airbnbs and one hotel near the Keflavik Airport, which came out to $1,610 for five nights.

We traveled in a group of three, which made accommodations cheaper since we were able to split the cost three ways.

Therefore, we opted for Airbnbs when possible since hotel rooms usually can only accommodate up to 2 people.

To save on accommodations, consider:

Booking early: Iceland’s hotels can fill up quickly, especially in popular areas like Reykjavik and Vik. Booking early ensures the best deal!
Staying in Airbnbs: Airbnbs are usually more affordable than hotels, especially if you’re splitting it with a group of people. I also noticed that our Airbnbs were in cooler, more scenic locations and also had more room to spread out than a traditional hotel room. They also usually had a kitchen, making it possible to cook your own meals if that is something you want to do. I will list the Airbnbs we stayed in below.
Camping: If you’re visiting in the summer and enjoy the outdoors, camping is a budget-friendly option. Iceland has many great campsites, though the weather can be unpredictable. We did not do any camping, but I have heard of people taking advantage of camper vans which are your accommodations and rental car all in one! I have heard that Happy Campers is a great local company to use. I don’t know if I would recommend tent camping due to the unpredictable weather and high winds.

Here are the accommodations we stayed in Iceland:

Airbnb in Vik that Overlooks the Reynisfjara Beach (the best Airbnb I have ever stayed in!)
Airbnb in the Golden Circle Area – located on a horse farm!
Marriott Courtyard Reykjavik – Near the Keflavik Airport

If you’re more interested in hotels than Airbnbs, I love using Expedia or Booking.com to find the best hotel deals.

How Much Does Food Cost in Iceland?

Total We Spent on Food = $735 for two people

Food in Iceland is notoriously expensive, especially if you’re eating out.

On average, we spent about $150 per day for two people, which was all dining out since we did not buy any groceries. So, this total includes breakfast, lunch, dinner, and coffee.

Dining out can easily cost $20 to $30 per person for a basic meal, so consider cooking some of your own meals if you want to save money.

To save on food, you can balance eating out with cooking your own meals if you have an accommodation with a kitchen.

Even though grocery shopping in Iceland can be expensive, it is cheaper than dining out for all of your meals.

Based on my research, I have gathered that Bonus seems to be the most affordable grocery store in Iceland.

If you have room in your luggage, you could always pack some instant meals and grab-and-go snacks in your suitcase to lower your cost on groceries.

Personally, when I go on vacation, I love to dine out and don’t like to cook my own meals, so I do save extra money ahead of time so I can enjoy this without guilt!

Here are all of the places in Iceland we ate at and if I would recommend them:

Crepes (Vik) – I wouldn’t recommend it as we did not enjoy it enough for the price, but it is a convenient option if you’re wanting a breakfast on-the-go.
Braud & Co – Worth every penny! The best cinnamon buns (rolls) ever! They are slightly different from American-style cinnamon rolls since they do not have any cream cheese frosting, but you won’t miss having that since they are THAT good.
Reykjavik Roasters – It wasn’t my personal favorite since I tend to like more flavored lattes and sweeter coffees, and they did not have any flavored syrups. But this could be your jam if you like more simple coffee!
Baejarins Betzu Pylsur – The famous Icelandic hot dogs! We loved these – worth the money to us!
Black Crust Pizzeria – This was a great spot for dinner in Vik. We grabbed the pizza to go, and it was great! I liked the Icelandic Langoustine pizza which is on its black crust.
Smidjan Brugghus – Super yummy burgers! Perfect place for dinner in Vik.
Suður-Vík – The best restaurant in Vik hands-down, and the best meal we had during our entire trip! It is pricier than most of the other options listed here, but it is well worth it due to the quality. We had breakfast and dinner here and enjoyed both. I recommend the fillet of lamb, and the lady in charge pizza.
Sjavargrillid Seafood Grill – This is a pricier restaurant in Reykjavik, but I think it was worth the money if you’re looking for a fancy dinner! I LOVED the lobster taco appetizer.
Ísey Skyr Bar – This is located in the basement of the Old Dairy Food Hall in Selfoss, and they serve the best acai bowls I have ever had! They are super fresh and include the popular Icelandic yogurt, Skyr, in them – making them even better than a traditional acai bowl.
Byrja – This is a great spot for some traditional breakfast food in Selfoss, and it is conveniently located next door to a grocery store. I loved their iced vanilla latte – it was my favorite coffee I had on this trip!
Konungs Kaffi – Great spot to grab a coffee! I liked their iced vanilla latte. It is located in Selfoss near the Old Dairy Food Hall.
Friðheimar – The popular tomato-based restaurant near the Golden Circle. Reservations are needed and should be made a few months in advance. You can get unlimited tomato soup and fresh bread – this is what I did!
Skool Beans Coffee – This is the iconic coffee shop in Vik that is inside a converted school bus! Their hot chocolate was pretty yummy. Do note that they only serve hot coffee – not iced.
Deig – They serve bagel sandwiches and yummy donuts. I got a crème brûlée donut, and it was amazing!
Mia’s Country Van – This is a food truck located near Skogafoss and Kvernufoss that serves up amazing fresh fish and chips. You must get this for lunch before or after you visit Skogafoss and Kvernufoss.

The amazing cinnamon rolls topped with powdered sugar served at Braud & Co in downtown Reykjavik in Iceland. — **Braud & Co Cinnamon Roll**

How Much Do Activities Cost in Iceland?

Total Cost of Our Activities in Iceland = $219 per person

One of the best things about Iceland is that many of its top sights are completely free out in nature.

From stunning waterfalls to black sand beaches, almost all of these have no entrance fee besides a small parking fee usually, which was roughly around $5-$8 USD.

However, many activities in Iceland, such as guided tours, do come at a cost.

During our trip, we spent $438 for activities ($219/person), which included:

A visit to the Sky Lagoon – $76 per person. We chose the cheapest option which includes the seven-step ritual and the normal public changing rooms. But, don’t let the public changing rooms worry you as your shower stall is still private with doors enclosing it.
A glacier hike which cost $143 per person. We did our glacier hike with a company called Local Guide of Vatnajökull, and I highly recommend it. It was such a phenomenal experience. We chose to do the longer glacier hike which is called the Glacier Discovery on their website.
If you’re interested in other activities like whale watching or snorkeling in the Silfra fissure, these tours can cost anywhere from $100 to $300 per person.

The black, blue, and white colors of the ice on the glacier that we walked on during our Vatnajokull glacier hike in Iceland. — **Vatnajökull Glacier Hike**

How Can I Save Money in Iceland?

Traveling to Iceland doesn’t have to break the bank if you plan ahead!

Here are some tips to help you save money in Iceland:

Travel during the off-season: Visiting between November and April can save you a lot of money on flights, hotels, and car rentals but it does limit the activities you will be able to do.
Book everything early: Whether it’s your flight, car rental, or accommodation, booking early helps you get the best prices.
Cook your own meals: Taking advantage of grocery stores and cooking your own food can save you hundreds of dollars compared to eating out for every meal.
Take advantage of free attractions: Iceland’s most beautiful sites, like waterfalls, beaches, and national parks, are free to visit besides small parking fees at most sites.
Skip the extras: If you’re on a tight budget, skip the expensive tours and focus on the free natural sites – there are plenty to enjoy and you won’t run out of them!

Here is an overview of the cost of our trip to Iceland for two people.

It was actually cheaper for us than this table below, since we went with a friend, and we were able to split the rental car, gas, and accommodations cost three ways.

But, since I know going with two people is more common, I have calculated it that way below.

Flights for Two People	$1,816
Rental Car (5 day rental)	$806
Gas	$205
Accommodations (5 nights)	$1,610
Food	$735
Activities	$438
Total Cost of Our Trip to Iceland for 2 People	$5,610

Conclusion

While you can’t totally escape Iceland being an expensive destination, you can do some planning ahead of time to lower the costs such as cooking your own meals, traveling with a group to split costs, etc.

I highly recommend making it a group trip – like we did – so you can split the cost of the rental car and accommodations. Plus, it makes the trip more fun!

Check out my other Iceland blog posts to help you plan your bucket list trip to Iceland: