Cost of Living Comparison Between Keflavik and Reykjavik Cost of Living Comparison Between Keflavik and Reykjavik

Monthly Cost of Living

Monthly costs for one person with rent: $3,069 in Keflavik versus $4,054 in Reykjavik.

Estimated couple costs with rent: $4,595 in Keflavik versus $5,691 in Reykjavik.

Monthly costs for a family of three with rent: $6,122 in Keflavik versus $7,329 in Reykjavik.

Living in Keflavik costs roughly 24% less than in Reykjavik, driven mainly by Eating Out.

Both cities are pricier than the global median: Keflavik 124% above, Reykjavik 196% above.

Meal at Budget Restaurant

$24.41 ISK 2,974

$30.01 ISK 3,655

-18.66%

Three-Course Dinner for Two, Mid-Range

$137 ISK 16.7K

$134 ISK 16.3K

2.42%

Fast Food Meal (McDonalds, etc)

$20.50 ISK 2,497

$27.02 ISK 3,292

-24.13%

Cappuccino

$4.01 ISK 489

$7.03 ISK 857

-42.96%

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

$3.22 ISK 392

$3.36 ISK 410

-4.17%

Water (0.33 liter bottle)

$3.35 ISK 408

Local Beer (0.5 liter draught)

$8.49 ISK 1,035

$13.80 ISK 1,681

-38.48%

Imported Beer (0.33 liter bottle)

$8.34 ISK 1,016

$12.17 ISK 1,482

-31.47%

Milk (1 liter)

$2.02 ISK 246

$2.03 ISK 248

-0.49%

White Bread (500g)

$4.32 ISK 526

$4.29 ISK 522

0.70%

Rice (white) (1kg)

$2.40 ISK 292

$3.51 ISK 428

-31.62%

Eggs

$6.45 ISK 785

$7.13 ISK 869

-9.54%

Local Cheese (1kg)

$19.18 ISK 2,336

$21.15 ISK 2,576

-9.31%

Chicken Fillets (1kg)

$23.88 ISK 2,909

$25.14 ISK 3,062

-5.01%

Beef Round Steak (1kg)

$42.74 ISK 5,206

$42.98 ISK 5,234

-0.56%

Apples (1kg)

$2.44 ISK 297

$3.38 ISK 412

-27.81%

Banana (1kg)

$2.41 ISK 293

$2.85 ISK 347

-15.44%

Oranges (1kg)

$2.44 ISK 297

$3.33 ISK 406

-26.73%

Tomato (1kg)

$4.23 ISK 515

$6.30 ISK 767

-32.86%

Potato (1kg)

$3.18 ISK 387

$4.08 ISK 497

-22.06%

Onion (1kg)

$1.67 ISK 203

$1.66 ISK 202

0.60%

Lettuce (1 head)

$3.84 ISK 468

$3.66 ISK 446

4.92%

Water (1.5 liter bottle)

$1.84 ISK 224

$1.76 ISK 215

4.55%

Cigarettes 20 Pack (Marlboro, Camel)

$14.27 ISK 1,738

$13.96 ISK 1,700

2.22%

Wine (Bottle)

$16.28 ISK 1,983

$23.46 ISK 2,858

-30.61%

Local Beer (0.5 liter bottle)

$3.83 ISK 467

$3.73 ISK 455

2.68%

Imported Beer (0.33 liter bottle)

$2.83 ISK 345

$3.49 ISK 425

-18.91%

One-way Ticket (Public Transport)

$3.60 ISK 439

$5.55 ISK 676

-35.14%

Public Transport Monthly Pass (Regular Price)

$77.8 ISK 9,470

$94.3 ISK 11.5K

-17.57%

Taxi Start (Normal Tariff)

$6.53 ISK 796

$6.56 ISK 799

-0.46%

Taxi (Normal Tariff) (1km)

$2.71 ISK 330

$2.89 ISK 351

-6.23%

Taxi 1hour Waiting (Normal Tariff)

$75.5 ISK 9,196

$73.8 ISK 8,985

2.35%

Gasoline (1 liter)

$1.92 ISK 234

$2.00 ISK 243

-4.00%

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

$51.7K ISK 6.3M

$50.6K ISK 6.2M

2.18%

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

$54.7K ISK 6.7M

$54.2K ISK 6.6M

0.94%

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

$87.5 ISK 10.7K

$88.8 ISK 10.8K

-1.51%

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

$33.19 ISK 4,043

$32.93 ISK 4,011

0.79%

Internet (50+ Mbps, Unlimited Data)

$84.8 ISK 10.3K

$83.1 ISK 10.1K

2.09%

Gym Membership (Monthly)

$79.0 ISK 9,620

$96.3 ISK 11.7K

-17.99%

Tennis Court (1 Hour on Weekend)

$49.54 ISK 6,034

Cinema Ticket

$19.65 ISK 2,393

$19.82 ISK 2,414

-0.86%

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

$415 ISK 50.5K

$1,213 ISK 147.7K

-65.81%

International Primary School, 1 Child (Yearly)

$30.8K ISK 3.8M

$31.2K ISK 3.8M

-1.08%

Jeans (Levis 501 Or Similar)

$158 ISK 19.3K

$156 ISK 19.0K

1.41%

Summer Dress (H&M, Zara, etc)

$66.0 ISK 8,042

$66.3 ISK 8,076

-0.42%

Sport Shoes (Adidas, Nike)

$177 ISK 21.5K

$178 ISK 21.7K

-1.08%

Men's Leather Business Shoes

$191 ISK 23.2K

$247 ISK 30.1K

-22.71%

1-bedroom Apartment, City Center (Monthly)

$1,875 ISK 228.3K

$2,466 ISK 300.3K

-23.97%

1-bedroom Apartment, Outside City Center (Monthly)

$1,340 ISK 163.2K

$2,078 ISK 253.1K

-35.53%

3-bedroom Apartment, City Center (Monthly)

$2,501 ISK 304.7K

$3,438 ISK 418.8K

-27.25%

3-bedroom Apartment, Outside City Center (Monthly)

$2,096 ISK 255.3K

$2,764 ISK 336.6K

-24.16%

Buy Apartment in City Center (m2)

$8,085 ISK 984.8K

Buy Apartment Outside City Center (m2)

$6,258 ISK 762.2K

Average Monthly Net Salary (After Tax)

$3,786 ISK 461.1K

$4,745 ISK 577.9K

-20.20%

20-Year Fixed Mortgage Interest Rate (Annual %)

8.88

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

Last update for Keflavik: September 14, 2026

Last update for Reykjavik: September 13, 2026

Cost Breakdown

A one-bedroom apartment in the center runs $1,875 in Keflavik and $2,466 in Reykjavik. Housing cost is often the main lever when comparing two cities.

Reykjavik pays 25% more on average. The extra income cushions the higher costs, though housing choices and lifestyle decide how much of the gap is truly closed.

Dining out: $137 in Keflavik vs $134 in Reykjavik. Groceries flip the comparison at $569 vs $627, with Keflavik cheaper for home cooking.

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

Keflavik vs Reykjavik: Cost of Living - Frequently Asked Questions

Keflavik wins on cost – living expenses run 32% lower than in Reykjavik. Housing and daily spending are where you'll feel the difference most, making Keflavik the obvious pick if budget is a priority.

On paper, salaries run 25% lower in Reykjavik. That's worth factoring in alongside costs, though remote workers earning in a stronger currency may not notice the difference at all.

Rent for a central apartment: $1,875 in Keflavik versus $2,466 in Reykjavik. Housing is usually the single largest factor when comparing overall living costs between the two.

A monthly transit pass in Keflavik runs roughly 21% less than in Reykjavik. Both cities have functional networks, but the price difference matters if you're watching your budget.

Childcare runs $415 in Keflavik versus $1,213 in Reykjavik. Over years of preschool, even a modest monthly gap compounds into a major financial factor for families.

Both cities are expensive relative to $2,000. Keflavik is the more realistic option, but even there you'll need to be disciplined with housing, food, and fun money.

Both work as nomad bases, but Keflavik delivers better value – similar infrastructure at $3,069 monthly. If stretching your runway or maximizing savings is the goal, the price difference makes Keflavik hard to pass up.

Safety-wise, Keflavik and Reykjavik are on par. Petty crime is typical for cities this size, and most residents feel comfortable going about their daily routines in either place.

Expats usually find Keflavik gentler on the wallet – expenses run 32% less than in Reykjavik. Beyond cost, consider language, visa policies, and how big the international community is in each city.