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: $2,826 in Keflavik versus $3,824 in Reykjavik.

Estimated couple costs with rent: $4,368 in Keflavik versus $5,556 in Reykjavik.

Monthly costs for a family of three with rent: $5,910 in Keflavik versus $7,289 in Reykjavik.

Living in Keflavik costs roughly 26% less than in Reykjavik, driven mainly by Eating Out.

Both cities are pricier than the global median: Keflavik 110% above, Reykjavik 184% above.

Meal at Budget Restaurant

$24.41 ISK 3,039

$27.13 ISK 3,378

-10.03%

Three-Course Dinner for Two, Mid-Range

$147 ISK 18.2K

$147 ISK 18.3K

-0.37%

Fast Food Meal (McDonalds, etc)

$20.33 ISK 2,531

$22.15 ISK 2,757

-8.22%

Cappuccino

$3.94 ISK 491

$6.08 ISK 756

-35.20%

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

$3.13 ISK 390

$3.24 ISK 404

-3.40%

Water (0.33 liter bottle)

$2.53 ISK 314

$2.60 ISK 324

-2.69%

Local Beer (0.5 liter draught)

$8.12 ISK 1,011

$13.07 ISK 1,627

-37.87%

Imported Beer (0.33 liter bottle)

$8.23 ISK 1,024

$11.14 ISK 1,387

-26.12%

Milk (1 liter)

$1.93 ISK 241

$1.86 ISK 231

3.76%

White Bread (500g)

$4.15 ISK 517

$4.34 ISK 541

-4.38%

Rice (white) (1kg)

$2.35 ISK 293

$3.63 ISK 451

-35.26%

Eggs

$6.18 ISK 769

$6.31 ISK 786

-2.06%

Local Cheese (1kg)

$18.22 ISK 2,268

$18.05 ISK 2,247

0.94%

Chicken Fillets (1kg)

$23.63 ISK 2,942

$24.02 ISK 2,990

-1.62%

Beef Round Steak (1kg)

$43.19 ISK 5,377

$43.15 ISK 5,372

0.09%

Apples (1kg)

$2.36 ISK 293

$3.26 ISK 406

-27.61%

Banana (1kg)

$2.43 ISK 303

$2.45 ISK 304

-0.82%

Oranges (1kg)

$2.39 ISK 298

$3.11 ISK 387

-23.15%

Tomato (1kg)

$4.04 ISK 503

$4.87 ISK 606

-17.04%

Potato (1kg)

$3.04 ISK 378

$3.68 ISK 459

-17.39%

Onion (1kg)

$2.04 ISK 254

$2.34 ISK 291

-12.82%

Lettuce (1 head)

$3.14 ISK 391

$3.04 ISK 379

3.29%

Water (1.5 liter bottle)

$1.95 ISK 243

$1.92 ISK 239

1.56%

Cigarettes 20 Pack (Marlboro, Camel)

$13.53 ISK 1,685

$13.59 ISK 1,692

-0.44%

Wine (Bottle)

$15.82 ISK 1,970

$23.29 ISK 2,900

-32.07%

Local Beer (0.5 liter bottle)

$3.75 ISK 466

$3.71 ISK 462

1.08%

Imported Beer (0.33 liter bottle)

$2.74 ISK 341

$3.30 ISK 411

-16.97%

One-way Ticket (Public Transport)

$3.57 ISK 444

$5.08 ISK 633

-29.72%

Public Transport Monthly Pass (Regular Price)

$75.1 ISK 9,355

$88.4 ISK 11.0K

-15.00%

Taxi Start (Normal Tariff)

$6.45 ISK 804

$6.30 ISK 784

2.38%

Taxi (Normal Tariff) (1km)

$2.30 ISK 286

$2.64 ISK 328

-12.88%

Taxi 1hour Waiting (Normal Tariff)

$85.4 ISK 10.6K

$86.7 ISK 10.8K

-1.45%

Gasoline (1 liter)

$2.47 ISK 308

$2.48 ISK 308

-0.40%

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

$47.1K ISK 5.9M

$46.4K ISK 5.8M

1.59%

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

$52.8K ISK 6.6M

$52.0K ISK 6.5M

1.49%

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

$86.3 ISK 10.7K

$89.0 ISK 11.1K

-3.03%

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

$27.46 ISK 3,418

$27.11 ISK 3,376

1.29%

Internet (50+ Mbps, Unlimited Data)

$85.8 ISK 10.7K

$83.7 ISK 10.4K

2.50%

Gym Membership (Monthly)

$83.2 ISK 10.4K

Tennis Court (1 Hour on Weekend)

$37.19 ISK 4,630

Cinema Ticket

$17.45 ISK 2,173

$17.41 ISK 2,167

0.23%

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

$318 ISK 39.5K

$319 ISK 39.7K

-0.48%

International Primary School, 1 Child (Yearly)

$30.2K ISK 3.8M

$29.8K ISK 3.7M

1.26%

Jeans (Levis 501 Or Similar)

$140 ISK 17.4K

$138 ISK 17.1K

1.45%

Summer Dress (H&M, Zara, etc)

$62.6 ISK 7,790

$60.8 ISK 7,569

2.93%

Sport Shoes (Adidas, Nike)

$185 ISK 23.1K

$181 ISK 22.5K

2.36%

Men's Leather Business Shoes

$184 ISK 22.9K

$269 ISK 33.5K

-31.73%

1-bedroom Apartment, City Center (Monthly)

$1,877 ISK 233.6K

$2,246 ISK 279.6K

-16.43%

1-bedroom Apartment, Outside City Center (Monthly)

$1,344 ISK 167.3K

$2,025 ISK 252.1K

-33.64%

3-bedroom Apartment, City Center (Monthly)

$2,475 ISK 308.2K

$3,220 ISK 400.9K

-23.14%

3-bedroom Apartment, Outside City Center (Monthly)

$2,042 ISK 254.2K

$2,728 ISK 339.6K

-25.14%

Buy Apartment in City Center (m2)

$7,686 ISK 957.0K

Buy Apartment Outside City Center (m2)

$6,267 ISK 780.3K

Average Monthly Net Salary (After Tax)

$3,650 ISK 454.4K

$4,442 ISK 553.0K

-17.83%

20-Year Fixed Mortgage Interest Rate (Annual %)

9.63

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

Last update for Keflavik: June 8, 2026

Last update for Reykjavik: June 8, 2026

Cost Breakdown

A one-bedroom apartment in the center runs $1,877 in Keflavik and $2,246 in Reykjavik. Housing cost is often the main lever when comparing two cities.

Reykjavik pays 22% 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: $147 in Keflavik vs $147 in Reykjavik for a mid-range dinner for two. Groceries echo the gap at $559 vs $596 per month, with Keflavik cheaper across the board.

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 35% 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, Reykjavik earns 22% less. 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: $1,877 in Keflavik versus $2,246 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 18% less than in Reykjavik. Both cities have functional networks, but the price difference matters if you're watching your budget.

Childcare runs $318 in Keflavik versus $319 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 $2,826 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 35% less than in Reykjavik. Beyond cost, consider language, visa policies, and how big the international community is in each city.