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 $2,509 per month in Australia vs $1,800 in Iceland, rent included.

A couple spends around $3,641 per month in Australia vs $2,674 in Iceland, rent included.

A family of three spends $4,772 per month in Australia vs $3,547 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 83%, Iceland by 32%.

Meal at Budget Restaurant

$18.16 A$25.52

$28.43 ISK 3,462

-36.12%

Three-Course Dinner for Two, Mid-Range

$85.9 A$121

$123 ISK 15.0K

-30.41%

Fast Food Meal (McDonalds, etc)

$10.87 A$15.27

$23.79 ISK 2,898

-54.31%

Cappuccino

$4.11 A$5.78

$6.15 ISK 749

-33.17%

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

$3.04 A$4.28

$3.13 ISK 381

-2.88%

Water (0.33 liter bottle)

$2.47 A$3.47

$3.13 ISK 381

-21.09%

Local Beer (0.5 liter draught)

$7.87 A$11.05

$12.34 ISK 1,503

-36.22%

Imported Beer (0.33 liter bottle)

$7.98 A$11.21

$12.18 ISK 1,483

-34.48%

Milk (1 liter)

$1.73 A$2.43

$2.16 ISK 263

-19.91%

White Bread (500g)

$2.78 A$3.90

$4.00 ISK 488

-30.50%

Rice (white) (1kg)

$2.38 A$3.34

$3.62 ISK 441

-34.25%

Eggs

$5.08 A$7.14

$6.94 ISK 845

-26.80%

Local Cheese (1kg)

$9.98 A$14.02

$20.84 ISK 2,538

-52.11%

Chicken Fillets (1kg)

$9.24 A$12.98

$24.89 ISK 3,031

-62.88%

Beef Round Steak (1kg)

$15.49 A$21.76

$41.60 ISK 5,067

-62.76%

Apples (1kg)

$3.73 A$5.24

$3.11 ISK 379

19.94%

Banana (1kg)

$3.02 A$4.25

$2.81 ISK 342

7.47%

Oranges (1kg)

$3.23 A$4.54

$3.21 ISK 391

0.62%

Tomato (1kg)

$4.88 A$6.86

$5.85 ISK 712

-16.58%

Potato (1kg)

$2.87 A$4.04

$3.91 ISK 476

-26.60%

Onion (1kg)

$2.36 A$3.32

$1.84 ISK 224

28.26%

Lettuce (1 head)

$2.49 A$3.50

$3.62 ISK 441

-31.22%

Water (1.5 liter bottle)

$1.68 A$2.35

$1.88 ISK 229

-10.64%

Cigarettes 20 Pack (Marlboro, Camel)

$38.51 A$54.1

$14.31 ISK 1,742

169.11%

Wine (Bottle)

$14.25 A$20.02

$22.71 ISK 2,766

-37.25%

Local Beer (0.5 liter bottle)

$5.07 A$7.12

$3.96 ISK 482

28.03%

Imported Beer (0.33 liter bottle)

$5.19 A$7.29

$3.42 ISK 416

51.75%

One-way Ticket (Public Transport)

$2.78 A$3.91

$5.50 ISK 670

-49.45%

Public Transport Monthly Pass (Regular Price)

$94.8 A$133

$90.6 ISK 11.0K

4.67%

Taxi Start (Normal Tariff)

$3.52 A$4.95

$6.94 ISK 845

-49.28%

Taxi (Normal Tariff) (1km)

$1.60 A$2.24

$2.90 ISK 353

-44.83%

Taxi 1hour Waiting (Normal Tariff)

$40.42 A$56.8

$75.2 ISK 9,163

-46.27%

Gasoline (1 liter)

$1.27 A$1.79

$2.28 ISK 278

-44.30%

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

$28.3K A$39.8K

$51.2K ISK 6.2M

-44.63%

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

$28.6K A$40.2K

$54.8K ISK 6.7M

-47.72%

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

$202 A$284

$96.3 ISK 11.7K

109.66%

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

$29.08 A$40.86

$31.52 ISK 3,839

-7.74%

Internet (50+ Mbps, Unlimited Data)

$59.6 A$83.7

$88.2 ISK 10.7K

-32.42%

Gym Membership (Monthly)

$59.3 A$83.3

$92.2 ISK 11.2K

-35.68%

Tennis Court (1 Hour on Weekend)

$20.13 A$28.28

$50.1 ISK 6,105

-59.84%

Cinema Ticket

$15.75 A$22.12

$19.53 ISK 2,378

-19.35%

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

$2,197 A$3,087

$942 ISK 114.7K

133.25%

International Primary School, 1 Child (Yearly)

$18.2K A$25.6K

$31.2K ISK 3.8M

-41.44%

Jeans (Levis 501 Or Similar)

$79.3 A$111

$150 ISK 18.3K

-47.25%

Summer Dress (H&M, Zara, etc)

$57.2 A$80.4

$48.22 ISK 5,874

18.71%

Sport Shoes (Adidas, Nike)

$114 A$160

$170 ISK 20.7K

-32.99%

Men's Leather Business Shoes

$125 A$175

$241 ISK 29.3K

-48.24%

1-bedroom Apartment, City Center (Monthly)

$1,581 A$2,221

$2,479 ISK 301.9K

-36.23%

1-bedroom Apartment, Outside City Center (Monthly)

$1,291 A$1,813

$1,939 ISK 236.2K

-33.45%

3-bedroom Apartment, City Center (Monthly)

$2,530 A$3,555

$3,477 ISK 423.5K

-27.24%

3-bedroom Apartment, Outside City Center (Monthly)

$1,982 A$2,784

$2,741 ISK 333.9K

-27.71%

Buy Apartment in City Center (m2)

$8,571 A$12.0K

$7,847 ISK 955.8K

9.22%

Buy Apartment Outside City Center (m2)

$6,120 A$8,598

$6,342 ISK 772.5K

-3.51%

Average Monthly Net Salary (After Tax)

$3,979 A$5,591

$4,910 ISK 598.0K

-18.94%

20-Year Fixed Mortgage Interest Rate (Annual %)

5.93

9.3

-36.24%

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

Last update for Australia: September 12, 2026

Last update for Iceland: September 12, 2026

Cost Breakdown

Average rent: $1,387 in Australia vs $553 in Iceland. For reference, capital cities sit at $1,829 in Canberra and $2,466 in Reykjavik.

Average salary: $3,903 in Australia vs $5,003 in Iceland. The income gap affects purchasing power and how far your budget stretches in each country.

Cost Highlights

Rent is 151% higher in Australia.

Public transport is 316% more expensive in Australia.

Salaries are 28% 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 10% 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 10% price gap. The savings show up everywhere – from supermarket receipts to monthly bills.

$5,000 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.