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 $1,700 in Iceland, rent included.

A couple spends around $3,217 per month in Australia vs $2,544 in Iceland, rent included.

A family of three spends $4,249 per month in Australia vs $3,388 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

$16.24 A$22.73

$26.43 ISK 3,236

-38.55%

Three-Course Dinner for Two, Mid-Range

$77.1 A$108

$128 ISK 15.6K

-39.63%

Fast Food Meal (McDonalds, etc)

$9.81 A$13.74

$20.13 ISK 2,464

-51.27%

Cappuccino

$3.58 A$5.01

$5.87 ISK 718

-39.01%

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

$2.57 A$3.60

$3.28 ISK 402

-21.65%

Water (0.33 liter bottle)

$2.18 A$3.05

$2.67 ISK 328

-18.35%

Local Beer (0.5 liter draught)

$6.63 A$9.28

$12.00 ISK 1,470

-44.75%

Imported Beer (0.33 liter bottle)

$7.12 A$9.97

$10.43 ISK 1,277

-31.74%

Milk (1 liter)

$1.50 A$2.10

$1.95 ISK 239

-23.08%

White Bread (500g)

$2.53 A$3.54

$4.06 ISK 497

-37.68%

Rice (white) (1kg)

$2.07 A$2.90

$3.53 ISK 433

-41.36%

Eggs

$4.29 A$6.01

$6.58 ISK 806

-34.80%

Local Cheese (1kg)

$8.65 A$12.11

$18.58 ISK 2,275

-53.44%

Chicken Fillets (1kg)

$8.34 A$11.68

$24.52 ISK 3,002

-65.99%

Beef Round Steak (1kg)

$13.90 A$19.47

$43.10 ISK 5,277

-67.75%

Apples (1kg)

$3.30 A$4.61

$3.09 ISK 379

6.80%

Banana (1kg)

$2.77 A$3.88

$2.51 ISK 307

10.36%

Oranges (1kg)

$2.95 A$4.13

$2.88 ISK 353

2.43%

Tomato (1kg)

$4.19 A$5.87

$5.09 ISK 623

-17.68%

Potato (1kg)

$2.42 A$3.39

$3.67 ISK 449

-34.06%

Onion (1kg)

$2.10 A$2.94

$2.21 ISK 271

-4.98%

Lettuce (1 head)

$2.26 A$3.16

$3.10 ISK 380

-27.10%

Water (1.5 liter bottle)

$1.50 A$2.10

$2.20 ISK 270

-31.82%

Cigarettes 20 Pack (Marlboro, Camel)

$31.58 A$44.22

$14.24 ISK 1,744

121.77%

Wine (Bottle)

$14.29 A$20.00

$22.19 ISK 2,717

-35.60%

Local Beer (0.5 liter bottle)

$4.59 A$6.42

$3.63 ISK 444

26.45%

Imported Beer (0.33 liter bottle)

$4.82 A$6.75

$3.19 ISK 390

51.10%

One-way Ticket (Public Transport)

$3.02 A$4.22

$5.25 ISK 643

-42.48%

Public Transport Monthly Pass (Regular Price)

$98.3 A$138

$82.7 ISK 10.1K

18.76%

Taxi Start (Normal Tariff)

$3.48 A$4.88

$6.40 ISK 784

-45.63%

Taxi (Normal Tariff) (1km)

$1.75 A$2.45

$2.28 ISK 279

-23.25%

Taxi 1hour Waiting (Normal Tariff)

$37.97 A$53.2

$84.4 ISK 10.3K

-55.01%

Gasoline (1 liter)

$1.21 A$1.69

$2.57 ISK 314

-52.92%

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

$29.0K A$40.6K

$47.6K ISK 5.8M

-38.96%

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

$22.6K A$31.6K

$53.3K ISK 6.5M

-57.69%

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

$177 A$248

$90.2 ISK 11.0K

96.55%

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

$26.85 A$37.59

$27.42 ISK 3,357

-2.08%

Internet (50+ Mbps, Unlimited Data)

$52.4 A$73.4

$84.9 ISK 10.4K

-38.29%

Gym Membership (Monthly)

$47.57 A$66.6

$80.8 ISK 9,887

-41.09%

Tennis Court (1 Hour on Weekend)

$16.46 A$23.04

$37.31 ISK 4,568

-55.88%

Cinema Ticket

$13.73 A$19.23

$17.42 ISK 2,133

-21.18%

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

$1,593 A$2,231

$357 ISK 43.7K

346.38%

International Primary School, 1 Child (Yearly)

$12.7K A$17.8K

$29.6K ISK 3.6M

-57.01%

Jeans (Levis 501 Or Similar)

$72.0 A$101

$138 ISK 16.9K

-47.74%

Summer Dress (H&M, Zara, etc)

$51.3 A$71.8

$62.9 ISK 7,700

-18.49%

Sport Shoes (Adidas, Nike)

$103 A$144

$173 ISK 21.2K

-40.42%

Men's Leather Business Shoes

$108 A$152

$250 ISK 30.6K

-56.66%

1-bedroom Apartment, City Center (Monthly)

$1,401 A$1,961

$2,237 ISK 273.9K

-37.38%

1-bedroom Apartment, Outside City Center (Monthly)

$1,080 A$1,512

$1,997 ISK 244.6K

-45.93%

3-bedroom Apartment, City Center (Monthly)

$2,340 A$3,276

$3,228 ISK 395.3K

-27.52%

3-bedroom Apartment, Outside City Center (Monthly)

$1,756 A$2,459

$2,684 ISK 328.6K

-34.56%

Buy Apartment in City Center (m2)

$7,733 A$10.8K

$7,656 ISK 937.4K

1.00%

Buy Apartment Outside City Center (m2)

$5,563 A$7,788

$6,336 ISK 775.8K

-12.21%

Average Monthly Net Salary (After Tax)

$4,000 A$5,600

$4,681 ISK 573.1K

-14.54%

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: April 27, 2026

Last update for Iceland: April 28, 2026

Cost Breakdown

Average rent: $1,232 in Australia vs $536 in Iceland. For reference, capital cities sit at $1,529 in Canberra and $2,244 in Reykjavik.

Average salary: $3,878 in Australia vs $4,953 in Iceland. The income gap affects purchasing power and how far your budget stretches in each country.

Cost Highlights

Rent is 130% higher in Australia.

Public transport is 253% more expensive in Australia.

Salaries are 28% 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.