7-Day Iceland Budget
Total trip budget:
My partner and I did this trip together, so we were able to split many of the costs.
Per person this trip costs us:
Flights: $524.91 USD per person
Hotel: $527.97 USD per person
Car: $186.75 USD per person
Food and excursions/activities: ISK 87.720 + $135 USD per person
Want to budget even lower than the trip I took? A few things you can definitely live without if your budget is a few hundred dollars away from making the trip possible:
Skip the Silfra fissure snorkel tour, and just walk around the fissure - (saves $135 per person)! The fissure is gorgeous even from above the water! This an especially easy skip if you don’t favor swimming in REALLY cold water. The dry suits keep you mostly warm, but your hands and feet are not kept dry/warm, and mine got very cold.
Instead of dining at the more expensive restaurants like Varma and Ingólfsskáli, get sandwiches from the convenience and grocery stores all over Reykjavik and all of Iceland! (save around $100 per person)
Skip the Raufarhólshellir – Lava Tube tour and add an additional waterfall into that day instead! (saves around $60 -$70 per person)
Skip The blue lagoon and go to a free hot spring open to the public instead like Reykjadalur, Seljavallalaug or Nauthólsvík. (saves around $60-70 per person)
Instead of the whale watching tour on day 4 (saves $90 per person), you could instead go to free activities like the Kolaportid flea market inside the city, or go exploring outside the site at one of the many hiking areas, free hot springs, or parks.
So the budget I had used for my trip could be decreased by close to $450 per person with these 5 easy swaps, and bring my original 7 day budget to around $1,500-$1,600 per person.
You can budget even more by staying in a hostel and significantly cut the lodging/hotel portion of my budget!
Flights:
Iceland had been on our travel wish list for a while, and after some research, we realized October was the perfect time to go—fewer crowds, lower prices, and still a chance to catch the Northern Lights. The biggest challenge? Finding an affordable flight. With tools like Skyscanner and Google Flights alerts, and looking 3-6 months in advance, we managed to snag a great deal on JetBlue out of Fort Lauderdale, connecting in JFK before heading to Iceland.
The flights that ended up working with our schedule ended up being $524.91 per person
Tips for Finding Cheap Iceland Flights
Start searching early (3-6 months in advance) and set up Google Flights alerts.
Be flexible with dates—midweek flights tend to be cheaper.
Check alternative airports (like Ft. Lauderdale, Orlando, and Miami) if flying from Florida.
Consider budget airlines like Play or Icelandair, but compare baggage fees and try to only have carry-on luggage.
Use Skyscanner's "cheapest month" feature to find the best seasonal deals.
One thing we noticed: prices fluctuate a lot. Some days were over $700 round-trip, but we found sweet spots closer to $400-$500.
Temperatures in Iceland vary dramatically by season: summer (June–August) hovers around 50–60°F (10–15°C), while winter (December–February) drops to 20–35°F (-7 to 2°C). October lands somewhere in the middle, averaging 35–45°F (2–7°C), which made it chilly but manageable with the right layers!
Hotel:
Finding affordable accommodation in Iceland can be tricky, but with some diligent searching, we landed a great deal. We compared prices on sites like Booking.com and Kayak, keeping an eye out for hotels that offered good value without sacrificing comfort. After some digging, we found a 7-day, 6-night stay at $175.99 per night, which we considered a solid deal—especially since it included breakfast. This turned out to be a huge money-saver, as food in Iceland is notoriously expensive. Having a hearty breakfast each morning meant we could fill up before heading out to explore, cutting down on the need for pricey café stops. The key to finding a good hotel deal? Book early, compare multiple sites, and look for perks like free meals—small savings add up fast in Iceland! The total for the hotel came out to $1,055.94 USD.
The hotel itself was comfortable but nothing to write home about—just a simple room with a bed and a small attached bathroom. Coming from the U.S., where hotel rooms (and especially bathrooms) tend to be more spacious, it took a little time to adjust to the more compact European style. That said, it had everything we needed for a good night’s rest, and at the end of the day, we weren’t in Iceland to hang out in a hotel room. Choosing a more budget-friendly stay allowed us to spend more on excursions—like chasing waterfalls and soaking in hot springs—and splurge on a few nice dinners, making the overall trip feel much more balanced.
Car Rental:
Renting a car in Iceland was the best way to explore at our own pace, and we used sites like Kayak and Booking.com to compare prices and find the most budget-friendly option. Before heading out each day, we checked a few essential apps: Road.is for real-time road conditions (watch out for “road bleeding,” where warm temperatures cause asphalt to soften), Vedur.is for weather updates (because storms can roll in fast), and SafeTravel.is for travel alerts that could impact our route. With these tools and a solid rental deal, we navigated Iceland safely and efficiently without blowing our budget!
Day 1: Exploring the Reykjanes Peninsula
Stop 0: Picked up rental car
Car rental purchase booked through Kayak for $373.50 USD.
Stop 1: Valahnúkamöl
Parking & Access : Free
Stop 2: Blue Lagoon
Parking: Free
Comfort Admission (Includes Towel, Silica Mask & 1 Drink): ISK 8,990 per person
Total Cost: ISK 17,980 in total
Stop 2.5: Lunch - Salthúsið in Grindavík
Parking: Free
Fish and chips x 2: ISK 2,400 per person
Total Cost: ISK 4,800
Stop 3: Cliffs & Beach of Grindavík
Parking & Access : Free
Stop 4: Seltún Geothermal Area & Indjánahöfði Nature Preserve
Parking & Access : Free
Stop 5: Reykjanesfólkvangur
Parking & Access : Free
Stop 6: Urriðafoss
Parking & Access : Free
Stop 7: Dinner - Café Loki
Lamb Shank Dish: ISK 4,200 per person
Icelandic Lamb Meat Soup: ISK 2,500 per person
Fermented Shark Sampler: ISK 2,000
Total Cost: ISK 8,700
Street parking in Reykjavík at night
Parking: Free
Day 1 spending: ISK 31,480 in total, ISK 15,740 per person
Day 2: Nature, Hiking, and Geothermal Wonders
Stop 1: Reykjadalur Hot Springs
Parking: ISK 700
Parking at Reykjadalur Hot Springs in Iceland costs 200 ISK for the first 60 minutes, and 250 ISK for each additional hour. We payed for 3 hours. Pay by machine or App
Hike: Free (no charge for the hike itself)
Hot Springs Access: Free (natural hot river)
Stop 2: The Geothermal Park Hveragerði / Hveragarðurinn
Entry Fee: ISK 1,000 per person
total cost: ISK 2,000
Lunch Stop: Hipstur Café
Meals:
Smoked salmon sandwich: ISK 2,200
Fish Soup: ISK 2,590
Total Cost: ISK 4,790
Stop 3: Reykjasfoss Waterfall
Parking & Access : Free
Stop 4: VARMA Geothermal Restaurant
We both did the three course menu featuring all items cooked in the hot spring. This definitely was a splurge, but 100% worth it an some of the best food we had all trip
Three course menu from the hot spring: ISK 10,790 per person ( $77.05 USD )
Total: ISK 21,580
Street parking in Reykjavík at night
Parking: Free
Day 2 spending: ISK 29,070 in total, ISK 14,535 per person
Day 3: Exploring West Iceland
Stop 1: Geirabakarí Kaffihús
Parking: Free
Pastries: Snudur ISK 290, Astarpunger ISK160,and Kleina ISK 125, totalling ISK 575
Total: ISK 1,025
Stop 2: Berugata Hafnarfjall Viewpoint
Parking & Access : Free
Stop 3: Skallagrím’s Burial Mound Time
Parking & Access : Free
Stop 4: The Settlement Center in Borgarnes
Parking: Free
Entry: 2,000 ISK per person
Total: ISK 4,000
Stop 5: Gerðuberg Cliffs
Parking & Access : Free
Stop 6: Fossárett Waterfall
Parking & Access : Free
Stop 7: Glymur Waterfall Hike
Parking & Access : Free
Dinner: Hot dogs from Víkinga Pylsur
Hot dog stand right across from our hotel
Two traditional hot dogs at ISK 700 each
Total ISK 1400
Gas:
We stopped in Borgarnes to get Gas before driving to the cliffs - we had rented a Peugeot 108 which is really fuel efficient at 56.7mpg. Which costs us around Peugeot 108 in Iceland would cost around ISK 10,500
Street parking in Reykjavík at night
Parking: Free
Day 3 spending: ISK 16,925 in total, ISK 8,462.5 per person
Day 4: Exploring Reykjavík & Whale Watching
Stop 1: Hallgrimskirkja
Entry Fee to Walk Around the Church: Free
Observation Tower (Optional): ISK 1,500 per person
Total Cost: Free (unless you opt for the tower - we did not)
Stop 2: Rainbow Street
Cost: Free (Just a photo opportunity!)
Stop 3: Sun Voyager Sculpture
Cost: Free (Another great photo spot!)
Stop 4: The Icelandic Phallological Museum
Entry Fee: ISK 2,500 per person
Lunch at the Phallic Cafe: Phallic waffles ISK 2990
Total Cost: ISK 7,990
Stop 5: Whale Watching Tour (1 PM – 4 PM)
Tour Price (Elding Whale Watching): ISK 12,990 per person
Total Cost: ISK 25,980
stop 6: Dinner & Laundry at The Laundromat Café
Meals:
Two Cheese Burgers: ISK 3,599 each
Laundry Cost: 1 token for washing and 1 For drying. 1 Token is 1299 and 1 box detergent at the cafe is 399. Total laundry cost was ISK 2,997
Total Cost: ISK 10,195
Stop 7: Northern Lights Hunt via Scooter
Scooter Rental (Lime or Hopp App-based Electric Scooters):
~ISK 250 start fee + ~ISK 40 per minute
Around 30 minutes of riding to northern light location and back: ISK 1,450 per person
Total Cost: ISK 2,900
Street parking in Reykjavík at night
Parking: Free
Day 4 spending: ISK 47,065 in total, ISK 22,887.5 per person
Day 5: Snorkeling at Silfra & Exploring Þingvellir National Park
Stop 1: Snorkeling Tour at Silfra
Snorkel Tour: $135 USD - booked in advanced on Viator - photos included in our package
Stop 2: Þingvellir National Park
Parking: ISK 1000
Access: Free to hike around at all the stops
Lunch at cafe: 2,500 ISK
Stop 3: Helgufoss Waterfall
Parking & Access : Free
Stop 4: Dinner at Ramen Momo
Seasonal Ramen: ISK 3290
Miso Tori Paitan Ramen: ISK 2740
Total Cost: ISK 6,030
Street parking in Reykjavík at night
Parking: Free
Total Day 5 spending: ISK 9,530 + $270 USD in total , - ISK 4,765 + $135 USD per person
Day 6: Exploring South Iceland
Stop 1: Raufarhólshellir – Lava Tube tour
Parking: Free
Lava tube tour: ISK 8.400 per person
Total ISK 16,800
Stop 2: Hafnarskeið Black Sand Beach and Lava Seacliffs
Parking & Access : Free
Stop 3: Seljalandsfoss Waterfall:
Parking: ISK 800
Access: Free
Stop 4: Gljúfrabúi Waterfall
Parking & Access : Free
Stop 5: Nauthúsagil Waterfall and Canyon
Parking & Access : Free
Stop 6: Dinner at Ingólfsskáli Viking Restaurant
Fish of the day ISK 5990
Beetloaf: ISK 5490
Skyr Cheesecake ISK 2790
Date Cake ISK 2790
Total Cost: ISK 17,060
Street parking in Reykjavík at night
Parking: Free
Day 6 spending: ISK 34,660 in total, ISK 17,330 per person
Day 7: Last Day - A Relaxing Farewell
Stop 1: Nauthólsvík Geothermal Beach
Entry Fee: Free (Walking on the beach and dipping feet)
Hot Tub Access (Optional): ISK 600 per person
Total Cost: Free (unless using hot tubs)
Stop 2: Drive Toward the Airport – Gardur Old Lighthouse
Parking: Free
Access: Free
Stop 2.5: Gas for car before returning the car
ISK 8,000
Day 7 spending: ISK 8,000 in total - ISK 4,000 per person
