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 $2,184 per month in Australia vs $1,701 in Iceland, rent included.

A couple spends around $3,219 per month in Australia vs $2,536 in Iceland, rent included.

A family of three spends $4,253 per month in Australia vs $3,371 in Iceland, rent included.

Australia costs about 28% more than Iceland on average – the gap runs across housing, groceries, transport, and services.

Both Australia and Iceland are pricier than the global median – Australia by 63%, Iceland by 27%.

Meal at Budget Restaurant

$16.44 A$23.23

$26.92 ISK 3,351

-38.93%

Three-Course Dinner for Two, Mid-Range

$78.1 A$110

$128 ISK 16.0K

-39.11%

Fast Food Meal (McDonalds, etc)

$9.94 A$14.05

$20.16 ISK 2,510

-50.69%

Cappuccino

$3.60 A$5.08

$6.04 ISK 752

-40.40%

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

$2.68 A$3.78

$3.18 ISK 396

-15.72%

Water (0.33 liter bottle)

$2.14 A$3.02

$2.59 ISK 322

-17.37%

Local Beer (0.5 liter draught)

$6.53 A$9.23

$12.06 ISK 1,502

-45.85%

Imported Beer (0.33 liter bottle)

$7.05 A$9.96

$10.62 ISK 1,322

-33.62%

Milk (1 liter)

$1.58 A$2.23

$1.88 ISK 234

-15.96%

White Bread (500g)

$2.53 A$3.57

$4.14 ISK 516

-38.89%

Rice (white) (1kg)

$2.07 A$2.93

$3.57 ISK 444

-42.02%

Eggs

$4.30 A$6.08

$6.62 ISK 824

-35.05%

Local Cheese (1kg)

$9.03 A$12.76

$18.70 ISK 2,328

-51.71%

Chicken Fillets (1kg)

$8.55 A$12.08

$24.29 ISK 3,024

-64.80%

Beef Round Steak (1kg)

$13.96 A$19.72

$43.51 ISK 5,416

-67.92%

Apples (1kg)

$3.18 A$4.49

$3.19 ISK 398

-0.31%

Banana (1kg)

$2.84 A$4.01

$2.45 ISK 305

15.92%

Oranges (1kg)

$2.95 A$4.17

$2.91 ISK 363

1.37%

Tomato (1kg)

$4.43 A$6.26

$5.04 ISK 627

-12.10%

Potato (1kg)

$2.46 A$3.47

$3.65 ISK 454

-32.60%

Onion (1kg)

$2.17 A$3.07

$2.22 ISK 276

-2.25%

Lettuce (1 head)

$2.29 A$3.24

$3.19 ISK 397

-28.21%

Water (1.5 liter bottle)

$1.57 A$2.22

$2.21 ISK 275

-28.96%

Cigarettes 20 Pack (Marlboro, Camel)

$30.87 A$43.61

$14.28 ISK 1,778

116.18%

Wine (Bottle)

$14.06 A$19.86

$22.89 ISK 2,850

-38.58%

Local Beer (0.5 liter bottle)

$4.55 A$6.43

$3.59 ISK 447

26.74%

Imported Beer (0.33 liter bottle)

$4.81 A$6.80

$3.09 ISK 384

55.66%

One-way Ticket (Public Transport)

$2.87 A$4.05

$5.17 ISK 643

-44.49%

Public Transport Monthly Pass (Regular Price)

$95.8 A$135

$84.8 ISK 10.6K

12.91%

Taxi Start (Normal Tariff)

$3.65 A$5.15

$6.37 ISK 793

-42.70%

Taxi (Normal Tariff) (1km)

$1.76 A$2.49

$2.28 ISK 283

-22.81%

Taxi 1hour Waiting (Normal Tariff)

$38.27 A$54.1

$85.5 ISK 10.6K

-55.22%

Gasoline (1 liter)

$1.15 A$1.63

$2.45 ISK 305

-53.06%

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

$28.4K A$40.1K

$47.4K ISK 5.9M

-40.09%

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

$23.0K A$32.5K

$52.7K ISK 6.6M

-56.32%

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

$178 A$251

$89.7 ISK 11.2K

98.46%

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

$26.46 A$37.38

$27.29 ISK 3,398

-3.04%

Internet (50+ Mbps, Unlimited Data)

$54.1 A$76.4

$85.2 ISK 10.6K

-36.48%

Gym Membership (Monthly)

$46.64 A$65.9

$83.6 ISK 10.4K

-44.21%

Tennis Court (1 Hour on Weekend)

$16.54 A$23.37

$37.75 ISK 4,700

-56.19%

Cinema Ticket

$13.65 A$19.28

$17.93 ISK 2,232

-23.87%

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

$1,575 A$2,225

$357 ISK 44.5K

340.64%

International Primary School, 1 Child (Yearly)

$12.7K A$17.9K

$30.4K ISK 3.8M

-58.25%

Jeans (Levis 501 Or Similar)

$71.5 A$101

$138 ISK 17.1K

-48.06%

Summer Dress (H&M, Zara, etc)

$50.8 A$71.8

$63.0 ISK 7,841

-19.32%

Sport Shoes (Adidas, Nike)

$100 A$142

$177 ISK 22.1K

-43.41%

Men's Leather Business Shoes

$108 A$153

$259 ISK 32.2K

-58.21%

1-bedroom Apartment, City Center (Monthly)

$1,384 A$1,955

$2,174 ISK 270.6K

-36.34%

1-bedroom Apartment, Outside City Center (Monthly)

$1,105 A$1,562

$2,032 ISK 253.0K

-45.61%

3-bedroom Apartment, City Center (Monthly)

$2,298 A$3,246

$3,132 ISK 389.9K

-26.63%

3-bedroom Apartment, Outside City Center (Monthly)

$1,728 A$2,441

$2,749 ISK 342.2K

-37.14%

Buy Apartment in City Center (m2)

$7,610 A$10.8K

$7,502 ISK 934.0K

1.43%

Buy Apartment Outside City Center (m2)

$5,504 A$7,776

$6,181 ISK 769.5K

-10.96%

Average Monthly Net Salary (After Tax)

$4,002 A$5,654

$4,650 ISK 578.9K

-13.94%

20-Year Fixed Mortgage Interest Rate (Annual %)

6.35

9.88

-35.73%

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

Last update for Australia: June 7, 2026

Last update for Iceland: June 9, 2026

Cost Breakdown

Average rent: $1,232 in Australia vs $538 in Iceland. For reference, capital cities sit at $1,568 in Canberra and $2,246 in Reykjavik.

Average salary: $3,845 in Australia vs $4,899 in Iceland. The income gap affects purchasing power and how far your budget stretches in each country.

Cost Highlights

Rent is 129% higher in Australia.

Public transport is 253% more expensive in Australia.

Salaries are 27% higher in Iceland, giving Iceland stronger purchasing power.

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 16% 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 16% 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.