How to Budget for an Iceland Trip

Honestly save up for this trip. Iceland imports most of its goods, and the cost catches people off guard, our first breakfast at a nice restaurant ran an $100 tab for the two of us. It’s worth budgeting budgeting for ahead of time, and honestly this trip works best if you have “adult money” but no adult bills yet. That’s how I found myself managing it, before moving out of my parents’ place. I did the research myself beforehand, so here’s what I learned so you can have it all in one place. 

Yummy food - but bring dried meals

Bringing dried meals was a must needed decision that made life way better since we already had these essentials in our home. I brought dried meals, canned soups, protein bars, granola bars, instant coffee/tea and hot chocolate with us. Having essential hiking meals/snacks makes everything more convenient to make those early mornings more swift to get out the door. 

When we landed, we went to Bónus, a local grocery store, and picked up perishable items, but not the ones that need to stay cold, since we didn’t have a fridge in the campervan. So we stuck to bread, cucumber, blueberries and whatever local treats caught our eye, because on a foreign road trip, the foreign treats always hit the best. 

Must-tries

An Icelandic hot dog, fish soup, and a cinnamon roll (they've perfected it — there's a house in Reykjavík known for its display of them). Lava soup at a small restaurant in Vík is worth the stop. If you're adventurous, sheep's head is a local staple, which tracks given how many sheep roam the island. The fish and chips is fresh and solid too.

Restaurant food runs 25–50% more than in North America (I'm coming from Canada), so budget accordingly.

Here's a very yummy Icelandic pizza we got to eat on a very windy day :)

Currency

Make sure to grab some currency at an exchange booth when you arrive, we got some krónur at the airport and local markets, and we were able to use our credit cards wherever needed. 

Campsites and parking: cheaper than you'd think

Contrary to Iceland's expensive reputation, campsites are genuinely affordable and expect somewhere around 1,800–2,800 ISK (roughly $13–20 USD) per person, per night, with basic countryside sites on the lower end and popular national park sites like Skaftafell on the higher end. Prices climb 20–30% during peak summer, so June sits a bit above shoulder-season rates, but it's still one of the cheapest parts of the trip.

Parking at tourist stops is more consistent: most major sites charge a flat 1,000 ISK (about $7 USD) per car, per day. A few, like Gullfoss, are still free.

Where the real cost creeps in

If you forget to pay at a tourist stop, expect to be charged 3–4x the original fee. Every stop has cameras tracking entrances and exits, and they will catch you and I found this out the hard way, getting billed after the fact for a couple of stops we genuinely forgot.

Watch for speed cameras at the entrances of smaller towns too. I nearly got caught myself, which would've meant a $500–700 USD fine. Keep an extra $500–1K in your account as a buffer since Iceland has a way of finding costs you didn't plan for.

FAQs

Is Iceland really expensive?

Yes. It's one of the most expensive countries to visit so make sure to go in prepared.

Can you do it without going broke?

Yes, with planning. Expect to spend around $3–4K total, and make peace with that number before it hits your account.

Is it worth the cost? 

Completely! I’d go back in a heartbeat and do the whole Ring Road! It's a place where canyons meet snow and lava meets the sea with the most magical landscape! 

Final take

I'd recommend Iceland without hesitation. It's worth every penny if you save ahead of time and budget with intention. Having income still coming in while you're there helps too by having money moving in, even mid-trip, takes the edge off spending it.