How Much Money Do You Need for 1 Week in Iceland?

A one-week trip to Iceland can cost around $1,200-$1,600 USD per person, assuming a daily budget of $120-$160 USD. This estimate covers accommodation, food, transportation, and activities. Accommodation costs range from $60 to $220 USD per night, while meals can cost $25-$35 USD per person. Transportation costs vary, but renting a car for a week can cost around $280 USD. Activities like glacier hiking and snorkeling can range from $80 to $160 USD per person. To make the most of your trip, prioritize your activities and budget accordingly, and get ready to discover the breathtaking landscapes and unique experiences that Iceland has to offer.

Accommodation Costs in Iceland

Accommodation Costs in Iceland

Depending on the type of accommodation and location, travelers can expect to pay anywhere from 8,000 to 30,000 ISK (approximately $60 to $220 USD) per night for a hotel or guesthouse in Iceland. Budget-friendly options like hostels and camping sites are available for around 2,000 to 5,000 ISK ($15 to $35 USD) per night. For those who prefer a more rustic experience, rural farm stays can be found for around 10,000 to 20,000 ISK ($75 to $150 USD) per night. Booking in advance is highly recommended, especially during peak travel seasons. Be sure to research and compare prices to find the best deals, and consider staying outside of Reykjavik for more affordable options.

Food and Drink Expenses

In terms of food and drink expenses in Iceland, travelers need to be prepared for a significant portion of their budget to be allocated to this category. Whether you plan to eat out at restaurants or prepare your own meals through grocery shopping, understanding the costs associated with each option is essential to making the most of your trip. In this section, we'll break down the prices you can expect to pay for eating out and grocery shopping, helping you to better plan your culinary adventure in Iceland, as regards food expenses.

Eating Out Costs

On average, a meal at a mid-range restaurant in Iceland costs around 3,000-4,000 ISK ($25-35 USD) per person, with a pint of beer adding another 1,000-1,500 ISK ($8-12 USD) to the bill. This can add up quickly, especially if you're traveling with a group or planning to eat out frequently. To budget accordingly, consider allocating around 6,000-8,000 ISK ($50-65 USD) per day for meals, assuming three meals per day. If you're looking to save money, consider opting for cafes or food trucks, which often offer more affordable options. Additionally, many restaurants offer set lunch menus or early bird specials, which can be a cost-effective way to enjoy a meal out.

Grocery Shopping Options

If you're looking to save money on food and drink expenses during your 1-week trip to Iceland, considering grocery shopping at local supermarkets or budget-friendly stores like Bónus or Krónan can be a cost-effective alternative to eating out. These stores offer a wide range of affordable and decent-quality food options, including fresh produce, meat, dairy products, and snacks. You can expect to pay around 500-700 ISK ($4-6 USD) for a week's worth of basic groceries. Additionally, many accommodations in Iceland offer kitchen facilities, making it easy to prepare your own meals. By grocery shopping, you can allocate more budget to outdoor activities, such as hiking, glacier hiking, or exploring Iceland's breathtaking landscapes.

Transportation in Iceland

Frequently, visitors to Iceland opt for renting a car, as it provides the most flexibility and freedom to discover the country's vast, rugged landscapes at their own pace. Rental cars range from economy to 4×4 vehicles, with prices varying accordingly. On average, a compact car rental for a week costs around ISK 40,000 (approximately $280 USD). Gas prices are relatively high, with a liter of gasoline costing around ISK 230 ($1.60 USD). Additionally, consider the cost of toll roads, such as the ISK 1,500 ($10 USD) tunnel toll near Reykjavik. For those not renting a car, bus services like Strætó and Reykjavik Excursions offer routes to popular attractions, with fares starting at ISK 440 ($3 USD) per ride.

Activity and Attraction Prices

Generally, visitors to Iceland can expect to pay a premium for activities and attractions, particularly those that involve guided tours or unique experiences, such as glacier hiking or snorkeling in Silfra Fissure. These activities can range in price from around 10,000 ISK (approximately $80 USD) for a glacier hike to 18,000 ISK (approximately $145 USD) for a snorkeling tour in Silfra Fissure. Other popular activities, such as horseback riding or visiting the Blue Lagoon, can cost between 5,000 ISK to 10,000 ISK (approximately $40-$80 USD). It's essential to budget accordingly and prioritize your activities to make the most of your trip. Consider booking in advance to confirm availability and take advantage of any package deals or discounts that may be available.

Miscellaneous Travel Expenses

When planning a trip to Iceland, it's essential to consider the miscellaneous expenses that can add up quickly. Beyond accommodation, food, and activities, there are additional costs to factor into your budget, including souvenirs and unexpected expenditures. In this section, we'll explore the importance of allocating funds for souvenir shopping and building an unplanned expense fund to ensure a stress-free Icelandic adventure.

Souvenir Shopping Budget

A daily souvenir shopping budget of around 1,500-2,000 ISK (approximately 12-16 USD) should cover the cost of small mementos, such as postcards, keychains, and magnets, as well as a few higher-end items like handmade Icelandic wool sweaters or intricately carved wooden figurines. When exploring Reykjavik's vibrant shopping streets or browsing through souvenir shops at popular attractions, it's essential to set a budget to avoid overspending. Consider allocating a larger portion of your budget for unique, high-quality items that reflect Iceland's distinct culture and natural beauty. For instance, a traditional Icelandic wool sweater can cost around 5,000-7,000 ISK (approximately 40-56 USD), while a beautifully crafted wooden figurine can range from 2,000-5,000 ISK (approximately 16-40 USD).

Unplanned Expense Fund

Budgeting for the unknown is essential in Iceland, where unpredictable weather and spontaneous adventures can lead to unexpected expenses. A dedicated unplanned expense fund will help you cover unexpected costs, such as a sudden need for a hot spring visit to warm up on a chilly day or a last-minute glacier hike. Allocate 10-15% of your total budget for miscellaneous travel expenses, which can amount to around ISK 15,000-20,000 (approximately $120-$160 USD) for a week-long trip. This fund will provide a financial safety net, allowing you to adapt to changing circumstances and make the most of your Icelandic adventure.

Daily Budget for Iceland Trip

Your daily expenses in Iceland will largely depend on your travel style, accommodation choices, and activities, but a rough estimate for a budget-conscious traveler would be around 15,000-20,000 ISK (approximately $120-$160 USD) per person per day. This amount covers basic accommodation, meals, and transportation. For accommodation, expect to pay around 8,000-12,000 ISK ($65-$95 USD) per night for a budget-friendly option. Meals can range from 2,000-4,000 ISK ($15-$30 USD) per meal, while transportation costs around 2,000-5,000 ISK ($15-$40 USD) per day. Activities such as glacier hiking, snorkeling, or horseback riding can cost an additional 10,000-20,000 ISK ($80-$160 USD) per person. By budgeting wisely, you can make the most of your trip to Iceland without breaking the bank.