Last update: Oct 2026

Cost of Living Comparison Between Australia and Iceland

Name: Iceland
Address: IS

For one person, living is cheaper in Australia: $2,626 a month against $3,897 in Iceland, rent and utilities included – about $15,300 less a year. Rent and utilities account for about half of the difference.

125

Cost of Living Index in Australia
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Australia Living Index
187

Cost of Living Index in Iceland
Learn more

Iceland Living Index

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🇦🇺 Australia

$2,626

/mo nomad

🇮🇸 Iceland

$3,897

/mo nomad

Monthly Cost of Living

How much you'll spend in Australia and in Iceland

Real prices from locals and on-the-ground checks – rent, groceries, transit and the daily extras. Here's what a month in Australia and in Iceland actually costs, broken down by who's living it.

A single person spends $2,626 per month in Australia vs $3,897 in Iceland, rent included.

Australia $2,626
Iceland $3,897

A couple spends around $3,810 per month in Australia vs $5,533 in Iceland, rent included.

Australia $3,810
Iceland $5,533

A family of three spends $4,994 per month in Australia vs $7,168 in Iceland, rent included.

Australia $4,994
Iceland $7,168

The regional cost range is wider in Iceland ($179–$4,040) than in Australia ($1,068–$3,303), so city choice matters more there.

The cost of living in Australia is roughly 33% lower than in Iceland on average.

Both Australia and Iceland are pricier than the global median – Australia by 93%, Iceland by 186%.

Meal at Budget Restaurant

$17.65 A$25.10

$28.48 ISK 3,457

-38.03%

Three-Course Dinner for Two, Mid-Range

$85.2 A$121

$123 ISK 14.9K

-30.75%

Fast Food Meal (McDonalds, etc)

$11.09 A$15.77

$23.70 ISK 2,877

-53.21%

Cappuccino

$3.90 A$5.54

$6.09 ISK 740

-35.96%

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

$2.85 A$4.05

$3.11 ISK 378

-8.36%

Water (0.33 liter bottle)

$2.31 A$3.29

$2.95 ISK 358

-21.69%

Local Beer (0.5 liter draught)

$7.53 A$10.71

$12.19 ISK 1,479

-38.23%

Imported Beer (0.33 liter bottle)

$8.59 A$12.21

$12.42 ISK 1,508

-30.84%

Milk (1 liter)

$1.76 A$2.50

$2.03 ISK 246

-13.30%

White Bread (500g)

$2.81 A$3.99

$3.99 ISK 484

-29.57%

Rice (white) (1kg)

$2.24 A$3.19

$3.45 ISK 419

-35.07%

Eggs

$5.02 A$7.14

$7.17 ISK 870

-29.99%

Local Cheese (1kg)

$9.87 A$14.03

$20.65 ISK 2,507

-52.20%

Chicken Fillets (1kg)

$9.32 A$13.25

$24.78 ISK 3,008

-62.39%

Beef Round Steak (1kg)

$14.86 A$21.14

$42.17 ISK 5,119

-64.76%

Apples (1kg)

$3.82 A$5.43

$3.01 ISK 366

26.91%

Banana (1kg)

$2.92 A$4.16

$2.67 ISK 325

9.36%

Oranges (1kg)

$3.13 A$4.46

$3.15 ISK 382

-0.63%

Tomato (1kg)

$4.81 A$6.84

$5.93 ISK 719

-18.89%

Potato (1kg)

$2.80 A$3.98

$3.86 ISK 469

-27.46%

Onion (1kg)

$2.38 A$3.38

$1.85 ISK 225

28.65%

Lettuce (1 head)

$2.37 A$3.37

$3.59 ISK 436

-33.98%

Water (1.5 liter bottle)

$1.65 A$2.35

$1.89 ISK 229

-12.70%

Cigarettes 20 Pack (Marlboro, Camel)

$39.13 A$55.7

$14.17 ISK 1,721

176.15%

Wine (Bottle)

$13.93 A$19.81

$22.52 ISK 2,734

-38.14%

Local Beer (0.5 liter bottle)

$4.96 A$7.05

$3.65 ISK 443

35.89%

Imported Beer (0.33 liter bottle)

$5.17 A$7.36

$3.33 ISK 405

55.26%

One-way Ticket (Public Transport)

$2.42 A$3.44

$5.51 ISK 669

-56.08%

Public Transport Monthly Pass (Regular Price)

$94.6 A$135

$94.7 ISK 11.5K

-0.10%

Taxi Start (Normal Tariff)

$3.49 A$4.97

$6.77 ISK 822

-48.45%

Taxi (Normal Tariff) (1km)

$1.60 A$2.27

$2.87 ISK 349

-44.25%

Taxi 1hour Waiting (Normal Tariff)

$39.84 A$56.7

$79.3 ISK 9,631

-49.78%

Gasoline (1 liter)

$1.39 A$1.98

$2.35 ISK 285

-40.85%

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

$30.0K A$42.7K

$69.7K ISK 8.5M

-56.95%

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

$25.8K A$36.6K

$56.0K ISK 6.8M

-54.03%

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

$205 A$292

$103 ISK 12.5K

98.95%

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

$28.33 A$40.30

$32.44 ISK 3,939

-12.67%

Internet (50+ Mbps, Unlimited Data)

$58.8 A$83.6

$87.9 ISK 10.7K

-33.11%

Gym Membership (Monthly)

$55.7 A$79.2

$92.3 ISK 11.2K

-39.71%

Tennis Court (1 Hour on Weekend)

$19.57 A$27.84

$52.4 ISK 6,359

-62.64%

Cinema Ticket

$15.38 A$21.87

$19.09 ISK 2,317

-19.43%

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

$2,145 A$3,051

$947 ISK 115.0K

126.50%

International Primary School, 1 Child (Yearly)

$18.3K A$26.1K

$26.4K ISK 3.2M

-30.45%

Jeans (Levis 501 Or Similar)

$78.3 A$111

$149 ISK 18.1K

-47.45%

Summer Dress (H&M, Zara, etc)

$56.3 A$80.0

$47.82 ISK 5,806

17.67%

Sport Shoes (Adidas, Nike)

$115 A$164

$172 ISK 20.9K

-33.05%

Men's Leather Business Shoes

$123 A$175

$234 ISK 28.4K

-47.41%

1-bedroom Apartment, City Center (Monthly)

$1,591 A$2,263

$2,575 ISK 312.7K

-38.22%

1-bedroom Apartment, Outside City Center (Monthly)

$1,293 A$1,839

$2,041 ISK 247.8K

-36.67%

3-bedroom Apartment, City Center (Monthly)

$2,524 A$3,591

$3,504 ISK 425.4K

-27.95%

3-bedroom Apartment, Outside City Center (Monthly)

$2,005 A$2,852

$2,712 ISK 329.2K

-26.06%

Buy Apartment in City Center (m2)

$8,751 A$12.4K

$7,617 ISK 924.7K

14.89%

Buy Apartment Outside City Center (m2)

$6,260 A$8,904

$6,338 ISK 769.4K

-1.23%

Average Monthly Net Salary (After Tax)

$3,984 A$5,666

$4,789 ISK 581.4K

-16.81%

20-Year Fixed Mortgage Interest Rate (Annual %)

5.93

9.29

-36.17%

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

Last update for Australia: October 27, 2026

Last update for Iceland: October 25, 2026

Monthly budget structure

Share of the monthly basket for one person, rent included.

Accommodation & Living

Australia

$1.3K 49.2%

Iceland

$2K 52.4% 57.9% $748

Groceries & Markets

Australia

$374 14.3%

Iceland

$611 15.7% 63.2% $236

Eating Out

Australia

$297 11.3%

Iceland

$482 12.4% 62.5% $185

Monthly Utilities & Internet

Australia

$292 11.1%

Iceland

$223 5.7% 23.5% $69

Clothing & Footwear

Australia

$168 6.4%

Iceland

$271 7% 61.7% $104

Getting Around

Australia

$116 4.4%

Iceland

$138 3.5% 19.1% $22

Sport & Entertainment

Australia

$86 3.3%

Iceland

$130 3.4% 51% $44

Cost Breakdown

Average rent: $1,383 in Australia vs $2,368 in Iceland. For reference, capital cities sit at $1,749 in Canberra and $2,585 in Reykjavik.

Average salary: $3,874 in Australia vs $4,949 in Iceland. The income gap affects purchasing power and how far your budget stretches in each country.

Cost Highlights

Rent is 71% higher in Iceland.

Dining out costs 42% more in Iceland.

Salaries are 28% higher in Iceland, and purchasing power comes out stronger in Australia.

Good to know

🇦🇺 Australia

🇮🇸 Iceland

🕒 Local time

18:11 6:11 PM

07:11 7:11 AM

11 h behind Australia

🌤 Weather

👥 Population

26,473,055

364,260

💱 Currency

Australian Dollar AUD $

Icelandic Króna ISK kr

📈 Exchange rate

1 AUD = 0.703 USD

1 AUD = 0.63 EUR

1,000 ISK = 8.24 USD

1,000 ISK = 7.38 EUR

Exchange rates and currency converter

ISK, USD, EUR to AUD – Australian Dollar Converter

🇺🇸 United States Dollar ($)

🇦🇺 Australian Dollar ($)

Australian Dollar exchange rates as of November 2, 2026: 1 USD = 1.42 AUD (1 AUD = 0.703 USD). 1 EUR = 1.59 AUD (1 AUD = 0.63 EUR).

Icelandic Króna exchange rates as of November 2, 2026: 1 USD = 121 ISK (1,000 ISK = 8.24 USD). 1 EUR = 136 ISK (1,000 ISK = 7.38 EUR).

USD to AUD in detail →

On the map

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Between locations

Australia Iceland 16,750 km ≈ 21 h nonstop flight

From you

Australia
Iceland

Distances are measured in a straight line. Your location is detected approximately.

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

Australia is the cheaper option – living costs run roughly 33% lower on average.

Housing costs more in Iceland: a central one-bedroom averages $2,368 versus $1,383 in Australia.

Australia is the budget-friendly choice for expats. But cost isn’t everything: visa policies, language, healthcare quality, and job markets all weigh in too.