Cost of Living Comparison Between Iceland and Australia Cost of Living Comparison Between Iceland and Australia

Name: Australia
Address: AU

Monthly Cost of Living

A single person spends $1,764 per month in Iceland vs $2,454 in Australia, rent included.

A couple spends around $2,632 per month in Iceland vs $3,566 in Australia, rent included.

A family of three spends $3,500 per month in Iceland vs $4,677 in Australia, rent included.

The cost of living in Iceland is roughly 28% lower than in Australia on average – the gap runs across housing, groceries, transport, and services.

Both Iceland and Australia are pricier than the global median – Iceland by 30%, Australia by 81%.

Meal at Budget Restaurant

$27.87 ISK 3,435

$17.21 A$24.59

61.94%

Three-Course Dinner for Two, Mid-Range

$122 ISK 15.1K

$82.7 A$118

47.87%

Fast Food Meal (McDonalds, etc)

$23.04 ISK 2,840

$10.58 A$15.11

117.77%

Cappuccino

$6.08 ISK 750

$3.85 A$5.49

57.92%

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

$3.20 ISK 394

$2.96 A$4.23

8.11%

Water (0.33 liter bottle)

$2.96 ISK 365

$2.39 A$3.42

23.85%

Local Beer (0.5 liter draught)

$11.97 ISK 1,475

$7.58 A$10.83

57.92%

Imported Beer (0.33 liter bottle)

$12.35 ISK 1,522

$7.51 A$10.73

64.45%

Milk (1 liter)

$1.97 ISK 243

$1.72 A$2.45

14.53%

White Bread (500g)

$3.96 ISK 488

$2.80 A$4.00

41.43%

Rice (white) (1kg)

$3.44 ISK 424

$2.23 A$3.19

54.26%

Eggs

$6.90 ISK 851

$5.07 A$7.24

36.09%

Local Cheese (1kg)

$20.59 ISK 2,538

$9.49 A$13.56

116.97%

Chicken Fillets (1kg)

$24.73 ISK 3,048

$9.09 A$12.99

172.06%

Beef Round Steak (1kg)

$41.78 ISK 5,149

$15.04 A$21.49

177.79%

Apples (1kg)

$3.11 ISK 384

$3.65 A$5.21

-14.79%

Banana (1kg)

$2.77 ISK 341

$3.05 A$4.36

-9.18%

Oranges (1kg)

$3.20 ISK 395

$3.22 A$4.61

-0.62%

Tomato (1kg)

$5.70 ISK 702

$4.62 A$6.60

23.38%

Potato (1kg)

$3.84 ISK 473

$2.85 A$4.07

34.74%

Onion (1kg)

$1.89 ISK 232

$2.35 A$3.36

-19.57%

Lettuce (1 head)

$3.25 ISK 400

$2.39 A$3.41

35.98%

Water (1.5 liter bottle)

$1.92 ISK 236

$1.73 A$2.47

10.98%

Cigarettes 20 Pack (Marlboro, Camel)

$14.11 ISK 1,739

$36.99 A$52.8

-61.85%

Wine (Bottle)

$22.42 ISK 2,763

$14.15 A$20.21

58.45%

Local Beer (0.5 liter bottle)

$3.72 ISK 458

$4.87 A$6.96

-23.61%

Imported Beer (0.33 liter bottle)

$3.35 ISK 413

$5.17 A$7.38

-35.20%

One-way Ticket (Public Transport)

$5.59 ISK 689

$3.01 A$4.30

85.71%

Public Transport Monthly Pass (Regular Price)

$91.5 ISK 11.3K

$91.9 A$131

-0.42%

Taxi Start (Normal Tariff)

$6.71 ISK 828

$3.45 A$4.92

94.49%

Taxi (Normal Tariff) (1km)

$2.79 ISK 344

$1.56 A$2.23

78.85%

Taxi 1hour Waiting (Normal Tariff)

$72.6 ISK 8,942

$39.88 A$57.0

81.95%

Gasoline (1 liter)

$2.31 ISK 284

$1.31 A$1.87

76.34%

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

$51.1K ISK 6.3M

$27.6K A$39.5K

85.07%

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

$53.2K ISK 6.6M

$28.2K A$40.3K

88.45%

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

$94.3 ISK 11.6K

$200 A$285

-52.73%

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

$32.68 ISK 4,027

$29.40 A$42.00

11.16%

Internet (50+ Mbps, Unlimited Data)

$85.3 ISK 10.5K

$58.7 A$83.8

45.37%

Gym Membership (Monthly)

$92.5 ISK 11.4K

$55.4 A$79.2

67.04%

Tennis Court (1 Hour on Weekend)

$49.83 ISK 6,142

$19.50 A$27.85

155.54%

Cinema Ticket

$18.97 ISK 2,338

$15.64 A$22.35

21.29%

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

$881 ISK 108.6K

$2,084 A$2,978

-57.72%

International Primary School, 1 Child (Yearly)

$30.8K ISK 3.8M

$17.5K A$25.0K

75.94%

Jeans (Levis 501 Or Similar)

$149 ISK 18.4K

$77.2 A$110

93.24%

Summer Dress (H&M, Zara, etc)

$48.65 ISK 5,996

$55.3 A$79.1

-12.09%

Sport Shoes (Adidas, Nike)

$172 ISK 21.3K

$112 A$160

53.61%

Men's Leather Business Shoes

$234 ISK 28.8K

$123 A$176

89.63%

1-bedroom Apartment, City Center (Monthly)

$2,427 ISK 299.1K

$1,530 A$2,186

58.59%

1-bedroom Apartment, Outside City Center (Monthly)

$1,956 ISK 241.0K

$1,254 A$1,792

55.95%

3-bedroom Apartment, City Center (Monthly)

$3,359 ISK 414.0K

$2,451 A$3,502

37.05%

3-bedroom Apartment, Outside City Center (Monthly)

$2,681 ISK 330.4K

$1,941 A$2,774

38.09%

Buy Apartment in City Center (m2)

$7,543 ISK 929.7K

$8,141 A$11.6K

-7.33%

Buy Apartment Outside City Center (m2)

$6,293 ISK 775.5K

$5,940 A$8,486

5.95%

Average Monthly Net Salary (After Tax)

$4,840 ISK 596.5K

$4,066 A$5,810

19.02%

20-Year Fixed Mortgage Interest Rate (Annual %)

9.42

5.93

58.85%

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

Last update for Iceland: August 4, 2026

Last update for Australia: August 2, 2026

Cost Breakdown

Average rent: $554 in Iceland vs $1,351 in Australia. For reference, capital cities sit at $2,509 in Reykjavik and $1,728 in Canberra.

Average salary: $4,938 in Iceland vs $3,813 in Australia. The income gap affects purchasing power and how far your budget stretches in each country.

Cost Highlights

Rent is 144% higher in Australia.

Public transport is 289% more expensive in Australia.

Salaries are 30% 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

Iceland vs Australia: Cost of Living - Frequently Asked Questions

Iceland is the cheaper option – living costs run roughly 12% 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 12% 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.