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

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

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

Iceland is roughly 22% cheaper than Australia on average – the gap runs across housing, groceries, transport, and services.

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

Meal at Budget Restaurant

$26.92 ISK 3,351

$16.44 A$23.23

63.75%

Three-Course Dinner for Two, Mid-Range

$128 ISK 16.0K

$78.1 A$110

64.22%

Fast Food Meal (McDonalds, etc)

$20.16 ISK 2,510

$9.94 A$14.05

102.82%

Cappuccino

$6.04 ISK 752

$3.60 A$5.08

67.78%

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

$3.18 ISK 396

$2.68 A$3.78

18.66%

Water (0.33 liter bottle)

$2.59 ISK 322

$2.14 A$3.02

21.03%

Local Beer (0.5 liter draught)

$12.06 ISK 1,502

$6.53 A$9.23

84.69%

Imported Beer (0.33 liter bottle)

$10.62 ISK 1,322

$7.05 A$9.96

50.64%

Milk (1 liter)

$1.88 ISK 234

$1.58 A$2.23

18.99%

White Bread (500g)

$4.14 ISK 516

$2.53 A$3.57

63.64%

Rice (white) (1kg)

$3.57 ISK 444

$2.07 A$2.93

72.46%

Eggs

$6.62 ISK 824

$4.30 A$6.08

53.95%

Local Cheese (1kg)

$18.70 ISK 2,328

$9.03 A$12.76

107.09%

Chicken Fillets (1kg)

$24.29 ISK 3,024

$8.55 A$12.08

184.09%

Beef Round Steak (1kg)

$43.51 ISK 5,416

$13.96 A$19.72

211.68%

Apples (1kg)

$3.19 ISK 398

$3.18 A$4.49

0.31%

Banana (1kg)

$2.45 ISK 305

$2.84 A$4.01

-13.73%

Oranges (1kg)

$2.91 ISK 363

$2.95 A$4.17

-1.36%

Tomato (1kg)

$5.04 ISK 627

$4.43 A$6.26

13.77%

Potato (1kg)

$3.65 ISK 454

$2.46 A$3.47

48.37%

Onion (1kg)

$2.22 ISK 276

$2.17 A$3.07

2.30%

Lettuce (1 head)

$3.19 ISK 397

$2.29 A$3.24

39.30%

Water (1.5 liter bottle)

$2.21 ISK 275

$1.57 A$2.22

40.76%

Cigarettes 20 Pack (Marlboro, Camel)

$14.28 ISK 1,778

$30.87 A$43.61

-53.74%

Wine (Bottle)

$22.89 ISK 2,850

$14.06 A$19.86

62.80%

Local Beer (0.5 liter bottle)

$3.59 ISK 447

$4.55 A$6.43

-21.10%

Imported Beer (0.33 liter bottle)

$3.09 ISK 384

$4.81 A$6.80

-35.76%

One-way Ticket (Public Transport)

$5.17 ISK 643

$2.87 A$4.05

80.14%

Public Transport Monthly Pass (Regular Price)

$84.8 ISK 10.6K

$95.8 A$135

-11.43%

Taxi Start (Normal Tariff)

$6.37 ISK 793

$3.65 A$5.15

74.52%

Taxi (Normal Tariff) (1km)

$2.28 ISK 283

$1.76 A$2.49

29.55%

Taxi 1hour Waiting (Normal Tariff)

$85.5 ISK 10.6K

$38.27 A$54.1

123.33%

Gasoline (1 liter)

$2.45 ISK 305

$1.15 A$1.63

113.04%

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

$47.4K ISK 5.9M

$28.4K A$40.1K

66.93%

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

$52.7K ISK 6.6M

$23.0K A$32.5K

128.95%

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

$89.7 ISK 11.2K

$178 A$251

-49.61%

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

$27.29 ISK 3,398

$26.46 A$37.38

3.14%

Internet (50+ Mbps, Unlimited Data)

$85.2 ISK 10.6K

$54.1 A$76.4

57.43%

Gym Membership (Monthly)

$83.6 ISK 10.4K

$46.64 A$65.9

79.25%

Tennis Court (1 Hour on Weekend)

$37.75 ISK 4,700

$16.54 A$23.37

128.23%

Cinema Ticket

$17.93 ISK 2,232

$13.65 A$19.28

31.36%

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

$357 ISK 44.5K

$1,575 A$2,225

-77.31%

International Primary School, 1 Child (Yearly)

$30.4K ISK 3.8M

$12.7K A$17.9K

139.49%

Jeans (Levis 501 Or Similar)

$138 ISK 17.1K

$71.5 A$101

92.53%

Summer Dress (H&M, Zara, etc)

$63.0 ISK 7,841

$50.8 A$71.8

23.95%

Sport Shoes (Adidas, Nike)

$177 ISK 22.1K

$100 A$142

76.71%

Men's Leather Business Shoes

$259 ISK 32.2K

$108 A$153

139.31%

1-bedroom Apartment, City Center (Monthly)

$2,174 ISK 270.6K

$1,384 A$1,955

57.08%

1-bedroom Apartment, Outside City Center (Monthly)

$2,032 ISK 253.0K

$1,105 A$1,562

83.86%

3-bedroom Apartment, City Center (Monthly)

$3,132 ISK 389.9K

$2,298 A$3,246

36.30%

3-bedroom Apartment, Outside City Center (Monthly)

$2,749 ISK 342.2K

$1,728 A$2,441

59.08%

Buy Apartment in City Center (m2)

$7,502 ISK 934.0K

$7,610 A$10.8K

-1.41%

Buy Apartment Outside City Center (m2)

$6,181 ISK 769.5K

$5,504 A$7,776

12.31%

Average Monthly Net Salary (After Tax)

$4,650 ISK 578.9K

$4,002 A$5,654

16.20%

20-Year Fixed Mortgage Interest Rate (Annual %)

9.88

6.35

55.59%

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

Last update for Iceland: June 9, 2026

Last update for Australia: June 7, 2026

Cost Breakdown

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

Average salary: $4,899 in Iceland vs $3,845 in Australia. 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

Iceland vs Australia: 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.