Cost of Living Comparison Between Australia and Iceland Cost of Living Comparison Between Australia and Iceland

Name: Iceland
Address: IS

Monthly Cost of Living

A single person spends $2,454 per month in Australia vs $1,764 in Iceland, rent included.

A couple spends around $3,566 per month in Australia vs $2,632 in Iceland, rent included.

A family of three spends $4,677 per month in Australia vs $3,500 in Iceland, rent included.

The cost of living in Australia is about 39% higher than in Iceland on average – the gap runs across housing, groceries, transport, and services.

Both Australia and Iceland are pricier than the global median – Australia by 81%, Iceland by 30%.

Meal at Budget Restaurant

$17.21 A$24.59

$27.87 ISK 3,435

-38.25%

Three-Course Dinner for Two, Mid-Range

$82.7 A$118

$122 ISK 15.1K

-32.37%

Fast Food Meal (McDonalds, etc)

$10.58 A$15.11

$23.04 ISK 2,840

-54.08%

Cappuccino

$3.85 A$5.49

$6.08 ISK 750

-36.68%

Coke/Pepsi/Fanta/Sprite (0.33 liter bottle)

$2.96 A$4.23

$3.20 ISK 394

-7.50%

Water (0.33 liter bottle)

$2.39 A$3.42

$2.96 ISK 365

-19.26%

Local Beer (0.5 liter draught)

$7.58 A$10.83

$11.97 ISK 1,475

-36.68%

Imported Beer (0.33 liter bottle)

$7.51 A$10.73

$12.35 ISK 1,522

-39.19%

Milk (1 liter)

$1.72 A$2.45

$1.97 ISK 243

-12.69%

White Bread (500g)

$2.80 A$4.00

$3.96 ISK 488

-29.29%

Rice (white) (1kg)

$2.23 A$3.19

$3.44 ISK 424

-35.17%

Eggs

$5.07 A$7.24

$6.90 ISK 851

-26.52%

Local Cheese (1kg)

$9.49 A$13.56

$20.59 ISK 2,538

-53.91%

Chicken Fillets (1kg)

$9.09 A$12.99

$24.73 ISK 3,048

-63.24%

Beef Round Steak (1kg)

$15.04 A$21.49

$41.78 ISK 5,149

-64.00%

Apples (1kg)

$3.65 A$5.21

$3.11 ISK 384

17.36%

Banana (1kg)

$3.05 A$4.36

$2.77 ISK 341

10.11%

Oranges (1kg)

$3.22 A$4.61

$3.20 ISK 395

0.63%

Tomato (1kg)

$4.62 A$6.60

$5.70 ISK 702

-18.95%

Potato (1kg)

$2.85 A$4.07

$3.84 ISK 473

-25.78%

Onion (1kg)

$2.35 A$3.36

$1.89 ISK 232

24.34%

Lettuce (1 head)

$2.39 A$3.41

$3.25 ISK 400

-26.46%

Water (1.5 liter bottle)

$1.73 A$2.47

$1.92 ISK 236

-9.90%

Cigarettes 20 Pack (Marlboro, Camel)

$36.99 A$52.8

$14.11 ISK 1,739

162.15%

Wine (Bottle)

$14.15 A$20.21

$22.42 ISK 2,763

-36.89%

Local Beer (0.5 liter bottle)

$4.87 A$6.96

$3.72 ISK 458

30.91%

Imported Beer (0.33 liter bottle)

$5.17 A$7.38

$3.35 ISK 413

54.33%

One-way Ticket (Public Transport)

$3.01 A$4.30

$5.59 ISK 689

-46.15%

Public Transport Monthly Pass (Regular Price)

$91.9 A$131

$91.5 ISK 11.3K

0.43%

Taxi Start (Normal Tariff)

$3.45 A$4.92

$6.71 ISK 828

-48.58%

Taxi (Normal Tariff) (1km)

$1.56 A$2.23

$2.79 ISK 344

-44.09%

Taxi 1hour Waiting (Normal Tariff)

$39.88 A$57.0

$72.6 ISK 8,942

-45.04%

Gasoline (1 liter)

$1.31 A$1.87

$2.31 ISK 284

-43.29%

Midsize Hatchback 1.4l (Volkswagen Golf, Toyota Prius, Honda Civic, etc)

$27.6K A$39.5K

$51.1K ISK 6.3M

-45.97%

Compact Sedan 1.6l (Toyota Corolla, Mazda3, Kia K4, Hyundai Elantra, etc)

$28.2K A$40.3K

$53.2K ISK 6.6M

-46.94%

Utilities for 2 People in 2-bedroom Apartment (Heating, Electricity, Gas, Water, Garbage) (85m2)

$200 A$285

$94.3 ISK 11.6K

111.56%

SIM Card Monthly Plan (Calls and 10GB+ Data)

$29.40 A$42.00

$32.68 ISK 4,027

-10.04%

Internet (50+ Mbps, Unlimited Data)

$58.7 A$83.8

$85.3 ISK 10.5K

-31.21%

Gym Membership (Monthly)

$55.4 A$79.2

$92.5 ISK 11.4K

-40.13%

Tennis Court (1 Hour on Weekend)

$19.50 A$27.85

$49.83 ISK 6,142

-60.87%

Cinema Ticket

$15.64 A$22.35

$18.97 ISK 2,338

-17.55%

Preschool or Kindergarten, Full Day, Private, 1 Child (Monthly)

$2,084 A$2,978

$881 ISK 108.6K

136.54%

International Primary School, 1 Child (Yearly)

$17.5K A$25.0K

$30.8K ISK 3.8M

-43.16%

Jeans (Levis 501 Or Similar)

$77.2 A$110

$149 ISK 18.4K

-48.25%

Summer Dress (H&M, Zara, etc)

$55.3 A$79.1

$48.65 ISK 5,996

13.75%

Sport Shoes (Adidas, Nike)

$112 A$160

$172 ISK 21.3K

-34.90%

Men's Leather Business Shoes

$123 A$176

$234 ISK 28.8K

-47.27%

1-bedroom Apartment, City Center (Monthly)

$1,530 A$2,186

$2,427 ISK 299.1K

-36.95%

1-bedroom Apartment, Outside City Center (Monthly)

$1,254 A$1,792

$1,956 ISK 241.0K

-35.88%

3-bedroom Apartment, City Center (Monthly)

$2,451 A$3,502

$3,359 ISK 414.0K

-27.03%

3-bedroom Apartment, Outside City Center (Monthly)

$1,941 A$2,774

$2,681 ISK 330.4K

-27.58%

Buy Apartment in City Center (m2)

$8,141 A$11.6K

$7,543 ISK 929.7K

7.91%

Buy Apartment Outside City Center (m2)

$5,940 A$8,486

$6,293 ISK 775.5K

-5.61%

Average Monthly Net Salary (After Tax)

$4,066 A$5,810

$4,840 ISK 596.5K

-15.98%

20-Year Fixed Mortgage Interest Rate (Annual %)

5.93

9.42

-37.05%

CityCost data is based on AI and user input – minor inaccuracies may occur.

Last update for Australia: August 2, 2026

Last update for Iceland: August 4, 2026

Cost Breakdown

Average rent: $1,351 in Australia vs $554 in Iceland. For reference, capital cities sit at $1,728 in Canberra and $2,509 in Reykjavik.

Average salary: $3,813 in Australia vs $4,938 in Iceland. The income gap affects purchasing power and how far your budget stretches in each country.

Cost Highlights

Rent is 144% higher in Australia.

Public transport is 289% more expensive in Australia.

Salaries are 30% higher in Iceland, and purchasing power comes out stronger in Iceland.

City Median Internet Speeds Comparison (Updated April 2026)

The chart highlights the Precision Threshold for mobile and fixed broadband internet speeds, updated quarterly.

Digital Nomad Cost of Living Index

Australia vs Iceland: Cost of Living - Frequently Asked Questions

Iceland is the cheaper option – living costs run roughly 12% lower on average. The gap is consistent across housing, groceries, transport, and entertainment.

Housing costs more in Australia, and the gap is biggest in capital cities. Regional towns show less difference, but Australia consistently has higher rents.

Groceries, transport, and utilities all cost less in Iceland, contributing to the overall 12% price gap. The savings show up everywhere – from supermarket receipts to monthly bills.

$3,000 buys a comfortable lifestyle in Iceland, but in Australia it only works with careful planning outside the capital. Same money, very different lives.

Iceland is the budget-friendly choice for expats – lower housing and daily costs. But cost isn't everything: visa policies, language, healthcare quality, and job markets all weigh in too.