Iceland on a Budget: 16 Tips for Saving Money
Filled with epic landscapes and non-stop adventure, Iceland should be on the bucket list of every outdoor enthusiast. But, the notoriously high cost often scares a lot of people away.
In fact, it’s one of the top 5 most expensive countries to visit! Between accommodations, day tours, eating out, and visiting pricey tourist attractions, you can easily end up spending several hundred dollars a day. Yikes.
But, as budget travelers ourselves, we believe that high costs shouldn’t be a deal breaker when choosing where to travel, and we think everyone should be able to get to experience this incredible country!
So, we set off to answer the question, Can Iceland really be traveled on a budget???
The good news? The short answer is: Yes, it absolutely can!
The bad news? The caveat is that while we still spent a ton less than many people end up spending in Iceland, the fact of the matter is that our trip to Iceland is still our most expensive trip to date.
We aren’t going to sugar coat this one… it’s an expensive place, but we’re here to tell you that it can be done on a budget, and that is is so worth the time to save up your dollars and take the extra time to plan ways to save money.
And we’re here to help! (**cue super hero music**)…
In this article, we want to share with you all of our top, proven strategies we used to travel through Iceland on a budget. From accommodation to food to activities, we got you covered: we’ll show you what we did to save money in Iceland and stretch our dollar to maximize the amount of time we could visit!
We’ll break down our costs by each category, give you tips on how we saved money in each, and in the end, we’ll show you our total cost for traveling through Iceland on a budget. And hopefully by the end, we’ll have convinced you that this is absolutely possible for you, too!
So, let’s dive in!
Article Contents
General Tips for Saving Money in Iceland
1. Visit Iceland during the off season
Being that this country is named Iceland, you might not think coming in the off season winter months is the smartest idea. Completely understandable.
But hear me out…
You might not think so, but Iceland really is a year-round destination! It really depends on what you’re looking to do. Want to explore ice caves? Hike in the highlands? Spot the northern lights? Watch puffins? There’s a season for all of that!
Here’s a very brief rundown of each season in Iceland:
Summer (June to August): Temperatures are at their warmest and daylight hours are at their longest.
These months are the best for hiking, camping, and driving the ring road when all roads and trails are clear from snow and ice. Other good things to do this time of year include whale watching, puffin spotting, and glacier trekking.
Fall (September to November): Slightly cooler temperatures bring more colorful landscapes, shorter days, a bit more unpredictable weather, and slightly smaller crowds.
During the first few weeks of fall, you might be able to still get some hiking in, but expect snow to begin falling as early as October. You can, however, start getting glimpses of the Northern Lights at this time.
Winter (December to February): The days are at their shortest (with daylight as little as 3 hours during the winter solstice!), and it’s the coldest time of year, but there are still adventures to be had! If you are up for the winter weather and are confident driving the wintry conditions in a 4WD vehicle, you’ll experience few crowds and witness the beauty of Icelandic winters with beautiful snow-covered landscapes and frozen waterfalls.
Winter is the prime time for hunting the Northern Lights, epic Super Jeep tours into the highlands, trying your hand at ice climbing or snowmobiling, and exploration of seasonal ice caves.
Spring (March to May): If you can handle a little bit of unpredictable weather and cool temperatures, you’ll rewarded with the smaller shoulder season crowds, puffins arriving back to the island, powerful waterfalls, campsites reopening, and you might still be able to catch some Northern Lights in the earlier spring months.
What does all this have to do with saving money? Well, it’s almost a universal truth that travel in off or shoulder seasons is a great way to save money if traveling on a budget anywhere. And this is no different in Iceland.
The peak season for tourism in Iceland is definitely summer time. The midnight sun, warmer temperatures, and the greater number of tourist attractions and hiking trails open draws in tons of people every year during this time. So, naturally, prices are higher for airfare, accommodations, and car rentals, and things book out far in advance.
In our experience, as soon as September 1st hits, the prices for vehicle rentals drop drastically. And by winter, prices are at their cheapest. There are often last-minute deals as well for off season rentals.
So, travelling on the off season can really save you some money. If you don’t want to visit Iceland in the dead of winter because you still want to hike and drive the ring road, the edges of the spring and fall shoulder seasons that surround the summer provide a happy medium. We think early fall is actually the best time to travel to Iceland because:
Temperatures are still mild during the day
There are adequate daylight hours for plenty of exploration but enough nighttime hours for a chance to see the Northern Lights
The crowds are a bit thinner than the peak of summer
The prices are lower than the peak of summer
You can still hike in the highlands while F roads and hiking trails are open
What we did: We visited Iceland for two weeks (last week of August and first week of September). We were able to do all the hikes we wanted to, catch the Northern Lights, and drive the Ring Road in its entirety. Continue reading to see all of our expenses on our trip!
2. Getting to and from the airport
The Keflavik airport, Iceland’s main airport, is about 45 minutes away from Reykjavik, so there’s no getting around it…you’ll need some form of transportation. And it’s a long distance that can add up depending on how you do it.
Luckily, you’ll have several options.
Taxis or any other form of private transportation: These are available from the airport, but it will cost a lot of money.
Airport buses: A better option than a taxi is to reserve a seat on one of Iceland’s airport-specific buses. The Flybus, the Airport Express, and the Airport Direct buses each have scheduled bus service between the airport and downtown Reykjavik, and, if you request in advance, you can get service right to your accommodation within the city. You’ll spend about 6,000 to 7,000 ISK for a round trip ticket. When deciding, check to make sure that the bus makes a stop at your specific accommodation, if you’ll have to switch buses at any point to do so, and if it’s extra (last we checked, it was extra for Airport Direct, but they also had the cheapest ticket).
The public bus: Iceland’s public bus, Straeto, is another option. We used this option when heading back to the airport at the end of our trip. The bus was a standard coach-type of bus, pretty comfortable, and had free WiFi. Here’s what you need to know:
Line 55 goes between the airport and Reykjavik.
It adds about a half hour of extra travel time because of all the stops it makes, but it is a bit cheaper…
If you look on their site, a bus ticket is 470 ISK, but travel between the airport and the city goes through four “zones”, so 4 tickets are required, making the true one-way cost 1880 ISK. Still, it cuts the cost of round trip travel almost in half compared to the airport buses.
Renting a car: In our opinion, the best mode of getting to and from the airport is with a car rental. We are huge advocates of traveling Iceland on your own by renting a car (or campervan…more on that later). Renting a car gives you so much more flexibility to work around weather and road closures, lets you adjust your schedule on the fly if you see something cool or interesting that you didn’t originally plan for (and trust us, that WILL happen in Iceland!), and gives you flexibility to plan around activities like chasing the Northern Lights. Plus, the cost is split between however many people are with you.
If you rent a car, you can do so right from the airport, negating the need to take any sort of public transportation. Also, in our experience, renting from the airport is the same price, if not slightly cheaper, than renting in the city. Some companies located a bit further from the airport will usually pick you up and drop you off for free.
So, let’s get into more of how to save money on car rentals and transportation in Iceland…
Saving Money on Car Rentals and Driving in Iceland
3. Rent a car from a local Icelandic rental company
Iceland has its fair share of big name rental companies, such as Enterprise and Hertz. And while we always go with one of these when we are in the states, you might want to think twice about them in Iceland if you’re trying to save some cash. While these companies are well known and reputable, they are by far the more expensive option in Iceland.
Prices of car rentals from big name companies (when we were looking in 2019):
The smallest economy car will run you about $45 per day. The more spacious car you get, the higher that price goes, up to about $100 a day.
SUVs and 4x4 vehicles start at about $100 a day and go up quickly from there.
There a tons of smaller local Icelandic rental companies that rent their vehicles for much less. We discovered them through Guide to Iceland, which is a great site all around for finding cars and guided activities at a reasonable price.
Prices of car rentals from small local companies on this site (again, when we were looking in 2019):
You can find rentals for as low as $20 a day for a small economy car
SUVs can be found for as little as $45 a day (but probably more like $70-80 a day)
This is a big difference that can really add up if you’re renting a car for a week or more!
Here are two major tips that we have when renting a car from a local company:
Do your homework. Look at reviews of the companies before committing to anything. We saw a couple of really good deals on 4x4s that we thought were too good to be true. When we looked more into the companies, we saw reviews that weren’t so great. Most complaints were about people given cars that had broken or missing parts and that broke down a few days into their trips, and about getting nickel and dimed for every little nick and chip on the car (which is almost impossible not to get when driving in Iceland…).
Compare the extra perks that come with the rental. Looking into the following questions might help you save a few dollars on the road.
Do they offer free airport pick up and drop off (usually companies “at the airport” are just off site, within a 5-10 minute drive and offer free transportation)?
Do you get a gas card for discounts at certain gas stations?
Do they offer coffee coupons? (Yes, some companies do this!)
Does the price include a free extra driver?
What kind of insurance comes with the rental?
What we did: We ultimately went with Lagoon Car Rentals. They are a local family-based Icelandic car rental company that had slightly higher prices than others, but their reviews online seemed to be significantly more positive that any other one we had looked into. And we ended up being totally happy with them. They were super friendly and efficient to work with, and they definitely seemed to understand that your car will get dinged and scratched up a bit on all of the gravel and dirt roads. We would certainly recommend them.
4. Get the extra insurance
I know, this might seem counterintuitive to the whole concept of saving money, but this is one of those situations where it’s better to be safe than sorry. It can help you potentially saving a lot of money in the future, and if anything, will just give you peace of mind on the road in a foreign country, which is priceless, right?
So what kind of insurance should you get?
Many rentals will have standard CDW insurance included (make sure yours does!), but then offer additional insurances for gravel, sand and ash, theft, and super collision.
If there’s one we would recommend getting, it’s the gravel insurance, especially if you are renting a 4x4 and are planning on driving on the rough F roads. These roads can get super tough, are totally gravel, have tons of potholes, and get very washboardy. Stones will inevitably be thrown up at the sides of your car and windshield from your own car and other cars around you. And some car companies can be sticklers about returning a car with new dents, chips, and scratches (which seems crazy to me knowing how terrible the roads in Iceland get!). Trust me, it will just give you more peace of mind knowing that you have some additional coverage.
Even if you’re not driving F roads, it’s still in your best interest to get the additional insurance. While the ring road is pretty much all paved, most roads that deviate from the ring road, even some that go to pretty popular tourist attractions, turn to dirt or gravel, and some can get pretty rough. You’ll be happy to have the extra coverage.
The extra insurance can cost you $12 USD a day or more, but isn’t it worth it to avoid a bill that’s potentially hundreds of dollars in damages later?
5. If you can, rent a manual vehicle
So, we know that if you don’t know how to drive a manual, this one is just not an option, because chances are you aren’t going to learn just for your vacation.
Manual cars do tend to be a bit cheaper than their automatic counterparts, so if you or anyone in your group knows how to drive a manual, then rent one to instantly save money.
6. There’s no way around the high gas prices of Iceland, but…
Sorry, but gas is just one of those things that you can’t avoid if you’re driving through Iceland on your own.
And when we say gas in Iceland is expensive, we really mean it. When we were there in 2019, gas ran somewhere between $7.00 and $7.50 per gallon! That adds up fast. You can check the current gas prices in Iceland here.
Gas companies: There are several different gas companies that you’ll find along the ring road. We found that Orkin, Olis and N1 were all roughly the same price. The fourth option, AO, usually seemed to be bit cheaper by about 100 ISK per liter. We also noticed that gas stations in and around Reykjavik were quite a bit cheaper than their ring road counterparts.
As we mentioned above, sometimes rental companies will give gas cards to their customers that give you small discounts (like, 30 ISK per liter off), but hey, any little thing to help save some money, right? Take advantage of this when you can!
Another more obvious way to save some money at the pump is to simply not drive so much. But, that’s no fun… you’re there to explore, right?! The ring road is calling you and you want to answer! We get it. Try to plan your route ahead of time, and try to incorporate all your must-see stops in a way that doesn’t require too much back tracking and re-driving roads.
7. Don’t speed in Iceland
This one’s important for several reasons.
First, Iceland takes speeding pretty seriously. There are speed cameras around the country that will automatically record your speed and send you a ticket in the mail. These cameras are usually found along the more touristy parts of the ring road and in tunnels. You’ll know they’re coming based on a warning sign that has a picture of a camera on it a few hundred meters in advance. If you’re renting a car, the tickets will be billed to the rental company, who will then charge you a processing fee on top of a ticket that can be hundreds of dollars.
We also read that if you get pulled over by a cop for speeding, they will expect you to pay the fine right then and there on the spot! If not, they could take you down to the station “to have a discussion”. Eek.
The other reason not to speed is because you have to be very cautious of road hazards when you’re behind the wheel. There are frequently blind turns and hills along the ring road, and you’ll have to watch out for things like people stopped in the road and wandering sheep. Not only will sheep cost you uninsured damage to your car, but you’ll have to pay the farmer a few hundred dollars as well. Most importantly, hitting one would be sad.
So, in summary, just don’t speed. There’s really no need to. The speed limits are very clear and felt pretty appropriate, and sometimes even too fast, as they are. The locals DO like to speed, however. They can get a little aggressive with tailgating and passing, but just let them do their thang and don’t get pressured into speeding up!
8. Get a sim card at the airport
You’ll probably want to have data and some cell service while in Iceland. It’s useful in case of an emergency, to look up places as you go, get directions to your next hotel or campsite, and to make last minute reservations for tours or buses (which is useful to be able to do, as there are some things you just might want to wait on reserving until you have a better idea of the weather situation).
Most rental companies will allow you to rent a wifi router in the car and charge by the day. Our campervan rental charged 15 euro per day, which can quickly add up to several hundred dollars depending on how long you’re in Iceland.
We suggest getting a sim card if you have a phone that allows it. It’s much cheaper.
There are three main cell phone companies in Iceland that sell sim cards: Siminn, Vodafone, and Nova. Siminn seems to have the most extensive coverage, and, at the time of writing this, you can get 10 gb of data for just 2900 ISK.
A quick note about Sundays in Iceland: We landed on a Sunday, failed to get the Siminn sim card from the airport because we thought that it would be cheaper at the Siminn store in Reykjavik. However, when we got to the city we quickly realized that the store, like many others, was closed on Sundays and we were stuck without the sim card until we made it to Selfoss the next night. Nova was the only store in that city, and it was much more expensive. We paid 2000 ISK for just a single gigabyte.
That said, we didn’t even come close to going through that 1 gb our entire time in Iceland. We used it for brief chunks of time each day to check the weather and look up places here and there.
We recommend saving money by getting a small sim card, such as 1 gb, for two reasons:
There are many places where you can take advantage of free wifi…campgrounds, hotels, some gas stations and grocery stores, and visitor centers often have free wifi, negating the need for data at all.
Download Iceland from Google Maps onto your phone before you get to Iceland. It doesn’t take too much space on your phone since there aren’t too many roads in the country, and you’ll always be able to reference it wherever you are to look up places to go and stay on the fly without the need for data. Most of our need for the internet was for directions, but with Google Maps downloaded onto our phone, we didn’t need to use our data.
9. Expect the unexpected
Be prepared for some surprise costs in Iceland. Carry a small amount of cash to cover some of these unexpected costs. Some examples of this include:
The biggest thing…bathrooms. In the more touristy popular areas, you’ll be hardpressed to find a bathroom that you don’t have to pay for. Even in gas stations and grocery stores, they ask that you pay a small fee, usually 100 ISK or $1 USD. At some popular attractions, they charge up to 500 ISK for bathroom use. You’ll find this much less frequently in the less touristy places.
Some attractions charge for parking or entry. These are pretty small fees that go towards the upkeep and maintenance of some of Iceland’s most popular places, so your money is going towards a good cause. Parking in Thingvellir National Park, Skaftafell National Park, and at Seljalandsfoss in particular costs money, and a visit to the Vestrahorn near Hofn along the southern coast, and to the Kerid Crater along the Golden Circle will set you back a small amount.
There is currently one toll in Iceland. It’s in the Vaðlaheiðargöng Tunnel in Northern Iceland just before you enter Akeuryi from the east along the ring road. It costs 1500 ISK, but can be avoided by a very scenic a quick 15 minute detour off the ring road and around the tunnel.
Saving Money on Accommodations in Iceland
10. Camp!
This one is our favorite tip on the list for saving money in Iceland! Why? Because we believe this is the most fun and adventurous way to explore Iceland.
If your home is a tent or a campervan, you have the most flexibility possible, with campgrounds to choose from all around the country. You can pack in as many activities as you can throughout the day, and just pop into the next campground to pack it in for the night. Best of all, the campgrounds are NICE! They are super clean, many have showers, and most have great facilities for cooking and hanging out.
Camping can potentially save you a LOT of money. How much?
Here are your other options:
Hostels are by far the cheapest option, after camping, but are really only economical for one person, as a dorm style bed can run you $20-40 a night per person.
As far as guest houses and hotels go, you can find 2 and 3 star accommodations for as low as $50 per night. Four star territory will get you into the $70-80 range to start, and goes up well beyond the $100 range, depending on the level of comfort and luxury you are looking for.
You’ll find that campgrounds to be a bit cheaper. They do charge per person, rather than per site, but usually falls somewhere between 1500-1700 ISK per person, which equates to $12-14. So, it’s almost half the cost of the cheapest hostel you can find, let alone how much cheaper it is versus a mid-range four star hotel! And most have nice kitchen facilities, showers, and laundry facilities.
There are sites that are a bit more, around 2000 ISK per person. These are usually near very popular tourist attractions, or in National Parks. Reykjavik’s campsite is the most expensive we saw at 2400 ISK per person, but it has pretty nice amenities. But, not to worry, wherever you are along the ring road, you’re likely to come across a campground that’s on the cheaper end of the spectrum.
Other ways to save money while camping in Iceland:
Some campgrounds have free showers! Try to take advantage of this. I’d say more than half of all campgrounds charge for showers and they are usually timed. We never paid for a shower by only showering every few days when we stumbled upon a campground that had showers included.
All campgrounds have an area where people leave extra food and gas canisters for camping stoves. Definitely take advantage of this! Gas canisters are pricey in Iceland, running about 999 ISK for a small can and 1875 ISK for a large can, so finding one in a campground is key. You’ll also find lots of rice, pasta, instant coffee, and condiments, so be sure to check these out before making your next grocery store run. And leave whatever you can behind, too, to share the wealth…someone will appreciate you for it!
Try to bring all of your camping equipment with you from home if you can. There are places in Reykjavik where you can rent camp gear, or, if you’re renting a campervan, the company may have gear to rent out to you, but after taking into consideration a tent, sleeping bags, sleeping pads, cookware, dishes, sheet, pillows, and any other gear you might need, this can all add up fast, into the hundreds, if you’re camping for a week or more.
We always try to pack all of our gear from home on short term travels. We usually use one suitcase for all of our camping gear that we check onto the plane, and use carry-ons for our normal items and clothes. It' costs money to check a bag, but it’s still far cheaper than renting gear for a long time.
Choosing a campervan in Iceland
In addition to the campsite, you’ll have to have a means of transportation. You can either rent a car and tent camp, or you can rent a campervan.
We’ve already gone over renting cars in this post, so now it’s time to focus on the campervan! If I sound excited, it’s because I totally am. Our trip to Iceland made me absolutely fall in love with van life, and has me dying to get back out there! And in Iceland, you might want to think twice about choosing a tent over a campervan. Iceland is known for its unpredictable weather. In the summer months, it rains a lot. Trust us…the first week of our trip, we camped in a tent and all of our gear, and ourselves included, were soaked the entire week. Having that van the second week was the most amazing thing in the world to me at the time!
Now, you might be thinking that surely, a campervan costs more to rent than a car?
Well, that depends. It might not, actually! In fact, we spent slightly less on our campervan per day than we did on our 4WD vehicle. Granted, you can probably get a smaller 2WD drive vehicle for a bit less, but we wanted to explore the highlands and a 4WD vehicle was needed. But, our point is that a campervan does not have to break the bank!
There are a LOT of choices out there for campervan rentals. And I mean a lot. It’s a little overwhelming. We saw dozens of different campervan companies represented out on the ring road.
If trying to choose a cheaper campervan, we recommend starting with Guide to Iceland. You can often find good deals here on campervans and get to know some of the companies in Iceland that rent out campervans.
Some of the more well-known companies that we had heard of before going to Iceland and that we saw on the road a lot were Happy Campers, Go Campers, and Kuku Campers. We went with Kuku campers, a quirky company but with reasonable prices, and we had a great experience with them.
When selecting a company to rent from, and a specific van type, consider the following:
What types of “extras” does the company include? Does it give gas cards or coupons for things, does it include any kind of insurance, offer unlimited mileage, include extra drivers at no cost? Does it include all the cookware you’ll need?
How much do they charge for additional items like camping gear, wifi and additional coverage, such as gravel insurance?
What are the reviews like for the company?
What kind of comfort level do you need out of the van? Campervans can be extremely simple and basic, with just a bed and a shelf for cookware and food. Or, you can get a more spacious set up with a full kitchen area with a sink, a heater for cold nights, a cooler to keep perishables, etc. Of course, the more amenities in the van, the higher the price.
Saving Money on Food in Iceland
11. Don’t go out to eat in Iceland
I know, I know. Lots of people equate vacation with not having to cook or clean themselves. But, if you want to have that luxury in Iceland, be prepared to pay for it! Going out to eat for two people can easily cost upwards of $70 or more, and much more if alcohol is involved (a simple beer can cost you double digits).
If you’re looking to save money, head to the grocery store and cook yourself. Most accommodations, including guesthouses and campgrounds, have kitchens with cookware you can use.
Grocery stores: There are several different grocery stores in Iceland, but the best one to shop at if on a budget is Bonus. Krogan is a close second, with only slightly higher prices on certain items. There’s plenty of these two stores in and around Reykjavik, so stock up as much as you can here!
What should you buy to save money on food in Iceland? Meat is particularly expensive. If you stick with things like rice, potatoes, oatmeal and cereal, you’ll save some money. Instant coffee is a good one to get, too… getting a cup or two of coffee every day from a gas station will definitely add up. Once you visit a grocery store for the first time, you can look around and get an idea of what the prices are and what you are comfortable spending.
Our typical meals in Iceland: We have experience when it comes to camping with only a gas stove to cook with. This means easy meals that only require boiling water!
Breakfasts: Usually instant oatmeal, sometimes yogurt
Lunches: Usually peanut butter and jelly
Dinners: A lot of pasta with sauce, couscous mixed with vegetables, rice, mac and cheese, and/or ramen. As a treat, we got burgers and hot dogs once or twice.
Road snacks: Trail mix, cheeze its, cookies…anything that looked good and was cheap!
Other ways to save money on food in Iceland:
Bring some food from home. We were able to pack our first week’s worth of snacks and breakfast in our suitcase…things that are normally pretty expensive here, and would only be moreso in Iceland…trail mix, protein bars, oatmeal and the like.
I’m sure you’ve heard of the famous Icelandic hotdog and plan on trying one, but, don’t rely too much on prepackaged foods from gas stations and markets. These can be pretty expensive. Icelandic gas station hotdogs have gotten very famous. They’ll run you about $3-4 USD, which is still expensive compared to the U.S., but it’s a cheap meal on the go, and something you probably should try once, or else, #didyoureallygotoiceland?
As we already mentioned, campgrounds often have areas where people can leave and take food. You can find lots of good stuff here…rice, pasta, condiments… even gas canisters for camping stoves. This is a good find if you can find a full one, as these can be pretty expensive if bought new.
12. Bring a reusable water bottle
The water in Iceland is perfectly safe to drink. Save a bunch of money and the environment with this one! It’s a win-win.
Saving Money on Activities in Iceland
13. Forego the tours…or maybe just pick your favorite one
There are sooo many cool things to do in Iceland…glacier hiking, snowmobiling, icecaving, chasing the Northern Lights, whale watching, puffin watching, the list goes on. You can even take full day or multi-day guided excursions to popular tourist destinations like the Golden Circle.
All of these tours can easily add up.
Our tip? Avoid those tours that can be easily done on your own. Intrigued by a tour that takes you around the Golden Circle? or down the southern coast? Rent a cheap car for the day or more and hit the road yourself.
To give you an idea on prices, some tours charge waaaay more for a five day guided tour than what we spent the entire two weeks we were in Iceland! So if you can do it yourself, do it! Plus, you’ll have more flexibility to go on your own schedule and make stops that a tour bus might not make.
Sure, some things you just can’t do on your own, like whale watching or glacier hiking. If there is one you really want to do….then just go for it! We did a glacier hiking tour and certainly don’t regret it.
Tips on booking tours in Iceland:
When shopping around, we found that all companies pretty much offer the same exact price when it comes to similar activities. Although, before booking, we recommend checking out Guide to Iceland. They sometimes have slightly discounted options, and we ended up saving a bit of money going through this website.
When booking a tour, the time of day might matter and help you save. Tours that leave first thing in the morning or the last tour of the day might be $10-20 less person. If you’re flexible, play around with the booking options to see if there are any price differences.
14. Avoid tourist traps
*ehem* Blue Lagoon, I’m looking at you. Did you know the Blue Lagoon isn’t even a naturally occurring hot spring? It’s man-made, and the water comes from a nearby geothermal power plant. Ok, it does offer the opportunity for really cool pictures, but, it’s the same pictures everyone has, and there are cheaper options out there, too!
Of course, there are other touristy lagoons, like the Secret Lagoon and the Myvatn Nature Baths, that are similar, but less crowded and cheaper. Or, you can check out one of hundreds of naturally occurring hot springs around the country at hotpoticeland.com.
I know I’m picking on the Blue Lagoon…if it’s in your budget, you should absolutely go for it! But for those of us trying to pinch those pennies, there are alternatives to places like these.
15. Get out and enjoy nature
Iceland is home to some of the most breathtaking scenery in the world, and fortunately, most of it is free!
In Iceland, you can:
Check out waterfalls (there’s like, a million of them to choose from!) Hint: Check out some of the best waterfalls in Iceland here! (you’re welcome.)
Watch bubbling hotsprings
Marvel at glaciers from afar
Walk along side mossy picturesque canyons
Take a hike through a lava field
Stand on black sand beaches
Getting out and seeing what makes Iceland so amazing is both awesome and cheap!
16. Get off the beaten path in Iceland
Iceland has a lot of famous attractions. And they are certainly popular for a reason. The southern coast in particular has tons of famous sites, waterfalls, hikes…certainly enough to keep you busy for your entire trip.
But, breaking away from these more popular spots and venturing into the less visited areas will help your budget. As you venture along the eastern fjords and along the northern coast, you can find cheaper meals, less expensive tourist attractions, and free bathrooms.
Plus, you’ll avoid the massive crowds, see some awesome things that not many people see, and have an all-around better experience. It’s a win-win.
Budget Breakdown: How Much Money We Spent in Iceland
Iceland was a dream destination for us, but for super budget-conscious travelers like ourselves, we were a little nervous about the costs. But, we knew it was somewhere we would always want to go, so we made the decision to just do it, and became determined to make our trip to Iceland as inexpensive as we possibly could.
And I think we did pretty well!
Want to know how much we spent? We spent a grand total of 1,960 USD. This breaks down to roughly 980 USD per person, and, on average, 70 USD per day per person.
Yes, we spent just under $1000 per person on a two-week adventure through Iceland. Now, $1000 may sound like a lot of money for someone on a budget, but trust us, this is a pretty low number considering the amount of time we were there and for everything we were able to see and do.
In two weeks, by saving money using the above tips and camping our way through the country, we were able to:
Travel the entire ring road
Explore the remote western fjords
Hike through Iceland’s interior highlands
Trek across a glacier and peek inside an ice cave
Spot the Northern Lights
…and more!
Here’s our complete budget breakdown by category. (Keep in mind that these are total costs for two people.)
Accommodations: $325 USD
What this includes: We camped every single night we were in Iceland. The first half we tent camped, and the second half we rented a campervan from Kuku Campers.
Transportation: $862 USD
What this includes: A one week rental of a 4x4 to drive into the highlands, and a one week rental of a campervan.
Gas: $440 USD
What this includes: Gas to power us through a lot of driving. We traveled all over the country, and this was hands-down one of our biggest expenses of the whole trip!
Food: $96 USD
What this includes: All food we bought in Iceland, including snacks, coffee stops, and gas station hotdogs.
Activities: $130 USD
What this includes: Our glacier trekking, and some small costs for parking or minor entry fees at tourist attractions.
Public transportation: $75 USD
What this includes: A bus to take us to the start and from the finish of the famous Fimmvorduhals hike, an absolute must-do on our Iceland itinerary!
The bus fee from our campervan drop-off to the airport at the end of our trip.
Miscellaneous: $33 USD
Random things needed, such as a sim card, and small bathroom charges along the ring road.
And there you have it…our complete budget breakdown! Can you save even more money? Absolutely! Trust us, we didn’t travel as cheaply as we could have because of the must-do’s on our list.
Here’s some ways you can cut costs even more!
Avoid using public transportation (which might put some limits on your itinerary)
Rent a normal car instead of a 4x4…but remember, this will limit where you can go in Iceland
Don’t do so much driving. We went everywhere! To save money, stick to one area or region and explore it fully!
Don’t do any expensive guided tours such as glacier trekking
These four tips alone will shave hundreds off of our budget, easily. So, get planning!
Let us help you!
We know planning a trip to Iceland can be overwhelming when you’re trying to save money. We hope you found these tips helpful if you’re trying to visit Iceland on a budget, and if you have any questions, feel free to reach out. We’re happy to help! Do you have any other money-saving tips for Iceland? Drop a comment below!
