Last update: Oct 2026

Cost of Living Comparison Between Cape Town and Keflavik

For one person, living is cheaper in Cape Town: $1,586 a month against $2,992 in Keflavik, rent and utilities included – about $16,900 less a year. Other living expenses account for most of the difference.

77

Cost of Living Index in Cape Town
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Cape Town Living Index
147

Cost of Living Index in Keflavik
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Keflavik Living Index

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Cape Town

🇿🇦 South Africa

$1,586

/mo nomad

Keflavik

🇮🇸 Iceland

$2,992

/mo nomad

Monthly Cost of Living

How much you'll spend in Cape Town and in Keflavik

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

A single person spends $1,586 per month in Cape Town vs $2,992 in Keflavik, rent included.

Cape Town $1,586
Keflavik $2,992

A couple spends around $2,425 per month in Cape Town vs $4,538 in Keflavik, rent included.

Cape Town $2,425
Keflavik $4,538

A family of three spends $3,263 per month in Cape Town vs $6,084 in Keflavik, rent included.

Cape Town $3,263
Keflavik $6,084

Cape Town is about 47% cheaper than Keflavik, and outside of rent the biggest gap is in groceries.

Both Cape Town and Keflavik sit above the global median – Cape Town by 17%, Keflavik by 122%.

Meal at Budget Restaurant

$12.14 R 200

$24.71 ISK 2,997

-50.87%

Three-Course Dinner for Two, Mid-Range

$45.34 R 747

$124 ISK 15.0K

-63.31%

Fast Food Meal (McDonalds, etc)

$5.88 R 96.9

$20.40 ISK 2,475

-71.18%

Cappuccino

$2.50 R 41.18

$4.06 ISK 493

-38.42%

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

$1.27 R 20.94

$3.18 ISK 386

-60.06%

Water (0.33 liter bottle)

$0.98 R 16.14

$3.19 ISK 387

-69.28%

Local Beer (0.5 liter draught)

$2.99 R 49.33

$8.00 ISK 970

-62.63%

Imported Beer (0.33 liter bottle)

$3.72 R 61.4

$8.34 ISK 1,012

-55.40%

Milk (1 liter)

$1.30 R 21.40

$2.10 ISK 255

-38.10%

White Bread (500g)

$1.25 R 20.68

$4.23 ISK 513

-70.45%

Rice (white) (1kg)

$2.23 R 36.76

$2.53 ISK 307

-11.86%

Eggs

$3.11 R 51.2

$6.32 ISK 767

-50.79%

Local Cheese (1kg)

$9.06 R 149

$19.06 ISK 2,311

-52.47%

Chicken Fillets (1kg)

$6.92 R 114

$24.38 ISK 2,958

-71.62%

Beef Round Steak (1kg)

$9.30 R 153

$41.25 ISK 5,003

-77.45%

Apples (1kg)

$1.84 R 30.25

$2.48 ISK 301

-25.81%

Banana (1kg)

$1.96 R 32.29

$2.51 ISK 304

-21.91%

Oranges (1kg)

$1.67 R 27.45

$2.44 ISK 296

-31.56%

Tomato (1kg)

$2.17 R 35.70

$4.01 ISK 486

-45.89%

Potato (1kg)

$1.57 R 25.81

$3.20 ISK 388

-50.94%

Onion (1kg)

$1.48 R 24.45

$1.70 ISK 206

-12.94%

Lettuce (1 head)

$1.30 R 21.41

$3.84 ISK 465

-66.15%

Water (1.5 liter bottle)

$1.13 R 18.60

$1.78 ISK 215

-36.52%

Cigarettes 20 Pack (Marlboro, Camel)

$3.60 R 59.3

$13.97 ISK 1,695

-74.23%

Wine (Bottle)

$6.15 R 101

$16.58 ISK 2,012

-62.91%

Local Beer (0.5 liter bottle)

$1.38 R 22.66

$3.61 ISK 438

-61.77%

Imported Beer (0.33 liter bottle)

$2.14 R 35.20

$2.94 ISK 356

-27.21%

One-way Ticket (Public Transport)

$1.50 R 24.65

$3.68 ISK 446

-59.24%

Public Transport Monthly Pass (Regular Price)

$60.8 R 1,001

$77.6 ISK 9,407

-21.66%

Taxi Start (Normal Tariff)

$0.59 R 9.71

$6.63 ISK 804

-91.10%

Taxi (Normal Tariff) (1km)

$1.50 R 24.65

$2.58 ISK 312

-41.86%

Taxi 1hour Waiting (Normal Tariff)

$5.11 R 84.2

$80.2 ISK 9,727

-93.63%

Gasoline (1 liter)

$1.55 R 25.50

$2.10 ISK 255

-26.19%

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

$36.2K R 596.5K

$50.1K ISK 6.1M

-27.79%

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

$31.2K R 514.8K

$54.7K ISK 6.6M

-42.86%

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

$114 R 1,883

$94.8 ISK 11.5K

20.59%

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

$28.91 R 476

$33.29 ISK 4,038

-13.16%

Internet (50+ Mbps, Unlimited Data)

$39.73 R 654

$85.0 ISK 10.3K

-53.26%

Gym Membership (Monthly)

$49.01 R 808

$78.5 ISK 9,526

-37.60%

Tennis Court (1 Hour on Weekend)

$10.99 R 181

Cinema Ticket

$9.15 R 151

$19.48 ISK 2,363

-53.03%

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

$259 R 4,264

$407 ISK 49.3K

-36.35%

International Primary School, 1 Child (Yearly)

$6,794 R 111.9K

$25.7K ISK 3.1M

-73.58%

Jeans (Levis 501 Or Similar)

$56.2 R 926

$152 ISK 18.4K

-63.02%

Summer Dress (H&M, Zara, etc)

$32.41 R 534

$65.4 ISK 7,934

-50.45%

Sport Shoes (Adidas, Nike)

$121 R 1,987

$182 ISK 22.0K

-33.62%

Men's Leather Business Shoes

$108 R 1,781

$191 ISK 23.1K

-43.31%

1-bedroom Apartment, City Center (Monthly)

$1,021 R 16.8K

$1,896 ISK 230.0K

-46.16%

1-bedroom Apartment, Outside City Center (Monthly)

$717 R 11.8K

$1,329 ISK 161.2K

-46.05%

3-bedroom Apartment, City Center (Monthly)

$1,824 R 30.1K

$2,516 ISK 305.1K

-27.50%

3-bedroom Apartment, Outside City Center (Monthly)

$1,327 R 21.9K

$2,061 ISK 250.0K

-35.62%

Buy Apartment in City Center (m2)

$2,391 R 39.4K

Buy Apartment Outside City Center (m2)

$1,542 R 25.4K

Average Monthly Net Salary (After Tax)

$1,639 R 27.0K

$3,752 ISK 455.0K

-56.32%

20-Year Fixed Mortgage Interest Rate (Annual %)

10.97

8.81

24.52%

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

Last update for Cape Town: October 10, 2026

Last update for Keflavik: October 12, 2026

Monthly budget structure

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

Accommodation & Living

Cape Town

$717 45.2%

Keflavik

$1.3K 44.4% 85.4% $612

Groceries & Markets

Cape Town

$225 14.2%

Keflavik

$566 18.9% 152% $341

Monthly Utilities & Internet

Cape Town

$183 11.5%

Keflavik

$213 7.1% 16.5% $30

Eating Out

Cape Town

$176 11.1%

Keflavik

$390 13% 121% $214

Clothing & Footwear

Cape Town

$143 9%

Keflavik

$265 8.9% 85.9% $123

Getting Around

Cape Town

$75 4.7%

Keflavik

$112 3.7% 49.4% $37

Sport & Entertainment

Cape Town

$67 4.2%

Keflavik

$118 3.9% 74.6% $50

Cost Breakdown

A central one-bedroom costs $1,021 in Cape Town versus $1,896 in Keflavik. Rent is usually the largest line item in a monthly budget, so the gap here sets the tone for the overall comparison.

Salaries run about 129% higher in Keflavik, which partly offsets the higher cost of living there. Purchasing power depends on which expenses matter most to you.

A mid-range dinner for two costs $45.00 in Cape Town versus $124 in Keflavik. Monthly groceries follow the same trend: $225 vs $566 – making Cape Town the more affordable choice for daily food spending.

Good to know

🇿🇦 Cape Town

🇮🇸 Keflavik

🕒 Local time

06:45 6:45 AM

04:45 4:45 AM

2 h behind Cape Town

🌤 Weather

👥 Population

3,740,026 Capital

15,000

💱 Currency

South African Rand ZAR R

Icelandic Króna ISK kr

📈 Exchange rate

100 ZAR = 6.07 USD

100 ZAR = 5.4 EUR

1,000 ISK = 8.24 USD

1,000 ISK = 7.33 EUR

Exchange rates and currency converter

ISK, USD, EUR to ZAR – South African Rand Converter

🇺🇸 United States Dollar ($)

🇿🇦 South African Rand (R)

South African Rand exchange rates as of October 19, 2026: 1 USD = 16.48 ZAR (100 ZAR = 6.07 USD). 1 EUR = 18.52 ZAR (100 ZAR = 5.4 EUR).

Icelandic Króna exchange rates as of October 19, 2026: 1 USD = 121 ISK (1,000 ISK = 8.24 USD). 1 EUR = 136 ISK (1,000 ISK = 7.33 EUR).

USD to ZAR in detail →

On the map

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Highest

Between locations

Cape Town Keflavik 11,470 km ≈ 15 h nonstop flight

From you

Cape Town
Keflavik

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

Cape Town vs Keflavik: Cost of Living - Frequently Asked Questions

Keflavik costs about 89% more than Cape Town, and outside of rent the gap comes mainly from groceries. That's enough to noticeably affect everyday spending and lifestyle for anyone choosing between the two.

For a comfortable life, plan on about $2,379 per month in Cape Town and $4,488 in Keflavik. That covers rent, food, utilities, transport, and enough left over to feel settled – not just surviving.

Rent is clearly cheaper in Cape Town, especially for central apartments. Housing is actually the single biggest factor behind the overall cost gap between these two cities.

Monthly expenses with rent come to $1,586 in Cape Town and $2,992 in Keflavik. That's a gap of about 89%.

Public transport costs about 28% less in Cape Town. For daily commuters, that gap adds up to noticeable savings over a year.

A $1,000 monthly budget goes further in Cape Town, where all-in costs run around $1,586, than in Keflavik at $2,992. In Cape Town it covers expenses comfortably, while in Keflavik it requires careful planning or may not stretch far enough.

For digital nomads, it depends on budget. Cape Town costs $1,586 versus $2,992 in Keflavik. Both have workable remote work infrastructure, but the cost gap matters when income varies month to month.

Both have safer and rougher neighborhoods, but overall safety is comparable to other large cities. Neighborhood choice matters more than the city-level comparison – central, well-trafficked areas feel secure in both.

If budget matters most, go with Cape Town. If higher salaries, better infrastructure, or specific career opportunities are the priority, Keflavik makes more sense. Both are solid long-term options with distinct trade-offs.