Last update: Oct 2026

Cost of Living Comparison Between Iceland and the United Kingdom

Name: United Kingdom
Address: GB

For one person, living is cheaper in the United Kingdom: $2,462 a month against $3,897 in Iceland, rent and utilities included – about $17,200 less a year. Rent and utilities account for about half of the difference.

187

Cost of Living Index in Iceland
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Iceland Living Index
119

Cost of Living Index in the United Kingdom
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United Kingdom Living Index

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🇮🇸 Iceland

$3,897

/mo nomad

🇬🇧 United Kingdom

$2,462

/mo nomad

Monthly Cost of Living

How much you'll spend in Iceland and in the United Kingdom

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

A single person spends $3,897 per month in Iceland vs $2,462 in the United Kingdom, rent included.

Iceland $3,897
United Kingdom $2,462

A couple spends around $5,533 per month in Iceland vs $3,600 in the United Kingdom, rent included.

Iceland $5,533
United Kingdom $3,600

A family of three spends $7,168 per month in Iceland vs $4,738 in the United Kingdom, rent included.

Iceland $7,168
United Kingdom $4,738

Cost ranges are similar: Iceland spans $179–$4,040, the United Kingdom $1,126–$4,646. City choice affects budget similarly in either country.

The cost of living in Iceland is about 58% higher than in the United Kingdom on average.

Both Iceland and the United Kingdom are pricier than the global median – Iceland by 186%, the United Kingdom by 81%.

Meal at Budget Restaurant

$28.48 ISK 3,457

$21.48 £16.04

32.59%

Three-Course Dinner for Two, Mid-Range

$123 ISK 14.9K

$85.7 £64.0

43.50%

Fast Food Meal (McDonalds, etc)

$23.70 ISK 2,877

$10.61 £7.92

123.37%

Cappuccino

$6.09 ISK 740

$4.91 £3.67

24.03%

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

$3.11 ISK 378

$2.66 £1.99

16.92%

Water (0.33 liter bottle)

$2.95 ISK 358

$1.87 £1.39

57.75%

Local Beer (0.5 liter draught)

$12.19 ISK 1,479

$6.63 £4.95

83.86%

Imported Beer (0.33 liter bottle)

$12.42 ISK 1,508

$6.84 £5.11

81.58%

Milk (1 liter)

$2.03 ISK 246

$1.68 £1.25

20.83%

White Bread (500g)

$3.99 ISK 484

$1.72 £1.28

131.98%

Rice (white) (1kg)

$3.45 ISK 419

$2.17 £1.62

58.99%

Eggs

$7.17 ISK 870

$4.00 £2.99

79.25%

Local Cheese (1kg)

$20.65 ISK 2,507

$9.42 £7.03

119.21%

Chicken Fillets (1kg)

$24.78 ISK 3,008

$9.19 £6.86

169.64%

Beef Round Steak (1kg)

$42.17 ISK 5,119

$14.77 £11.03

185.51%

Apples (1kg)

$3.01 ISK 366

$2.97 £2.21

1.35%

Banana (1kg)

$2.67 ISK 325

$1.62 £1.21

64.81%

Oranges (1kg)

$3.15 ISK 382

$2.85 £2.13

10.53%

Tomato (1kg)

$5.93 ISK 719

$3.52 £2.63

68.47%

Potato (1kg)

$3.86 ISK 469

$1.83 £1.37

110.93%

Onion (1kg)

$1.85 ISK 225

$1.61 £1.20

14.91%

Lettuce (1 head)

$3.59 ISK 436

$1.25 £0.93

187.20%

Water (1.5 liter bottle)

$1.89 ISK 229

$1.66 £1.24

13.86%

Cigarettes 20 Pack (Marlboro, Camel)

$14.17 ISK 1,721

$23.65 £17.66

-40.08%

Wine (Bottle)

$22.52 ISK 2,734

$10.50 £7.84

114.48%

Local Beer (0.5 liter bottle)

$3.65 ISK 443

$2.98 £2.23

22.48%

Imported Beer (0.33 liter bottle)

$3.33 ISK 405

$3.51 £2.62

-5.13%

One-way Ticket (Public Transport)

$5.51 ISK 669

$3.98 £2.97

38.44%

Public Transport Monthly Pass (Regular Price)

$94.7 ISK 11.5K

$107 £80.2

-11.84%

Taxi Start (Normal Tariff)

$6.77 ISK 822

$5.18 £3.87

30.69%

Taxi (Normal Tariff) (1km)

$2.87 ISK 349

$2.35 £1.75

22.13%

Taxi 1hour Waiting (Normal Tariff)

$79.3 ISK 9,631

$26.84 £20.04

195.57%

Gasoline (1 liter)

$2.35 ISK 285

$1.99 £1.48

18.09%

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

$69.7K ISK 8.5M

$39.4K £29.5K

76.68%

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

$56.0K ISK 6.8M

$40.5K £30.2K

38.38%

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

$103 ISK 12.5K

$327 £244

-68.50%

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

$32.44 ISK 3,939

$18.21 £13.60

78.14%

Internet (50+ Mbps, Unlimited Data)

$87.9 ISK 10.7K

$43.60 £32.56

101.51%

Gym Membership (Monthly)

$92.3 ISK 11.2K

$42.36 £31.63

117.89%

Tennis Court (1 Hour on Weekend)

$52.4 ISK 6,359

$18.22 £13.60

187.49%

Cinema Ticket

$19.09 ISK 2,317

$13.85 £10.34

37.83%

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

$947 ISK 115.0K

$1,868 £1,395

-49.30%

International Primary School, 1 Child (Yearly)

$26.4K ISK 3.2M

$22.6K £16.9K

16.59%

Jeans (Levis 501 Or Similar)

$149 ISK 18.1K

$92.9 £69.4

60.37%

Summer Dress (H&M, Zara, etc)

$47.82 ISK 5,806

$45.92 £34.29

4.14%

Sport Shoes (Adidas, Nike)

$172 ISK 20.9K

$102 £75.9

69.13%

Men's Leather Business Shoes

$234 ISK 28.4K

$102 £76.3

129.03%

1-bedroom Apartment, City Center (Monthly)

$2,575 ISK 312.7K

$1,342 £1,002

91.85%

1-bedroom Apartment, Outside City Center (Monthly)

$2,041 ISK 247.8K

$1,073 £801

90.16%

3-bedroom Apartment, City Center (Monthly)

$3,504 ISK 425.4K

$2,231 £1,666

57.02%

3-bedroom Apartment, Outside City Center (Monthly)

$2,712 ISK 329.2K

$1,742 £1,301

55.68%

Buy Apartment in City Center (m2)

$7,617 ISK 924.7K

$5,601 £4,182

35.99%

Buy Apartment Outside City Center (m2)

$6,338 ISK 769.4K

$4,265 £3,185

48.60%

Average Monthly Net Salary (After Tax)

$4,789 ISK 581.4K

$3,349 £2,501

42.99%

20-Year Fixed Mortgage Interest Rate (Annual %)

9.29

5.32

74.62%

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

Last update for Iceland: October 25, 2026

Last update for the United Kingdom: October 26, 2026

Monthly budget structure

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

Accommodation & Living

Iceland

$2K 52.4%

United Kingdom

$1.1K 43.6% 47.4% $968

Groceries & Markets

Iceland

$611 15.7%

United Kingdom

$307 12.5% 49.7% $303

Eating Out

Iceland

$482 12.4%

United Kingdom

$328 13.3% 32% $154

Clothing & Footwear

Iceland

$271 7%

United Kingdom

$154 6.3% 43.2% $117

Monthly Utilities & Internet

Iceland

$223 5.7%

United Kingdom

$389 15.8% 74.2% $166

Getting Around

Iceland

$138 3.5%

United Kingdom

$140 5.7% 1.7% $2.4

Sport & Entertainment

Iceland

$130 3.4%

United Kingdom

$70 2.9% 46.3% $60

Cost Breakdown

Average rent: $2,368 in Iceland vs $1,287 in the United Kingdom. For reference, capital cities sit at $2,585 in Reykjavik and $2,811 in London.

Average salary: $4,949 in Iceland vs $3,251 in the United Kingdom. The income gap affects purchasing power and how far your budget stretches in each country.

Cost Highlights

Rent is 84% higher in Iceland.

Dining out costs 43% more in Iceland.

Public transport is 25% more expensive in the United Kingdom.

Salaries are 52% higher in Iceland.

Good to know

🇮🇸 Iceland

🇬🇧 United Kingdom

🕒 Local time

11:58 11:58 AM

Same time as Iceland

🌤 Weather

👥 Population

364,260

67,326,569

💱 Currency

Icelandic Króna ISK kr

British Pound GBP £

📈 Exchange rate

1,000 ISK = 8.24 USD

1,000 ISK = 7.38 EUR

1 GBP = 1.34 USD

1 GBP = 1.2 EUR

Exchange rates and currency converter

GBP, USD, EUR to ISK – Icelandic Króna Converter

🇺🇸 United States Dollar ($)

🇮🇸 Icelandic Króna (kr)

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

British Pound exchange rates as of November 1, 2026: 1 USD = 0.747 GBP (1 GBP = 1.34 USD). 1 EUR = 0.834 GBP (1 GBP = 1.2 EUR).

USD to ISK in detail →

On the map

Lowest

Highest

Between locations

Iceland United Kingdom 1,890 km ≈ 2 h 45 min nonstop flight

From you

Iceland
United Kingdom

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

Iceland vs United Kingdom: Cost of Living - Frequently Asked Questions

The United Kingdom is the cheaper option – living costs run roughly 37% lower on average.

Housing costs more in Iceland: a central one-bedroom averages $2,368 versus $1,287 in the United Kingdom.

$4,000 buys a comfortable lifestyle in the United Kingdom, but in Iceland it only works with careful planning outside the capital. Same money, very different lives.

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