Last update: Oct 2026

Cost of Living Comparison Between Keflavik and Reykjavik

For one person, living is cheaper in Keflavik: $3,018 a month against $4,040 in Reykjavik, rent and utilities included – about $12,300 less a year. Rent and utilities account for most of the difference.

145

Cost of Living Index in Keflavik
Learn more

Keflavik Living Index
194

Cost of Living Index in Reykjavik
Learn more

Reykjavik Living Index

Jump to prices

Keflavik

🇮🇸 Iceland

$3,018

/mo nomad

Reykjavik

🇮🇸 Iceland

$4,040

/mo nomad

Monthly Cost of Living

How much you'll spend in Keflavik and in Reykjavik

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

Monthly costs for one person with rent: $3,018 in Keflavik versus $4,040 in Reykjavik.

Keflavik $3,018
Reykjavik $4,040

Estimated couple costs with rent: $4,529 in Keflavik versus $5,742 in Reykjavik.

Keflavik $4,529
Reykjavik $5,742

Monthly costs for a family of three with rent: $6,041 in Keflavik versus $7,445 in Reykjavik.

Keflavik $6,041
Reykjavik $7,445

Living in Keflavik costs roughly 25% less than in Reykjavik, and outside of rent the biggest gap is in eating out.

Both cities are pricier than the global median: Keflavik 122% above, Reykjavik 197% above.

Meal at Budget Restaurant

$24.11 ISK 2,927

$31.42 ISK 3,815

-23.27%

Three-Course Dinner for Two, Mid-Range

$121 ISK 14.7K

$125 ISK 15.2K

-3.12%

Fast Food Meal (McDonalds, etc)

$20.25 ISK 2,458

$27.18 ISK 3,300

-25.50%

Cappuccino

$4.22 ISK 513

$6.65 ISK 807

-36.54%

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

$3.36 ISK 408

$3.41 ISK 414

-1.47%

Water (0.33 liter bottle)

$3.03 ISK 368

$3.04 ISK 369

-0.33%

Local Beer (0.5 liter draught)

$8.25 ISK 1,001

$14.18 ISK 1,721

-41.82%

Imported Beer (0.33 liter bottle)

$8.15 ISK 990

$12.16 ISK 1,477

-32.98%

Milk (1 liter)

$2.11 ISK 256

$2.10 ISK 255

0.48%

White Bread (500g)

$4.21 ISK 512

$4.14 ISK 502

1.69%

Rice (white) (1kg)

$2.50 ISK 303

$3.69 ISK 447

-32.25%

Eggs

$6.55 ISK 796

$7.09 ISK 860

-7.62%

Local Cheese (1kg)

$19.70 ISK 2,391

$22.32 ISK 2,709

-11.74%

Chicken Fillets (1kg)

$23.90 ISK 2,902

$24.78 ISK 3,008

-3.55%

Beef Round Steak (1kg)

$41.71 ISK 5,063

$42.67 ISK 5,181

-2.25%

Apples (1kg)

$2.44 ISK 296

$3.29 ISK 400

-25.84%

Banana (1kg)

$2.41 ISK 292

$2.88 ISK 350

-16.32%

Oranges (1kg)

$2.50 ISK 303

$3.27 ISK 397

-23.55%

Tomato (1kg)

$4.16 ISK 504

$6.37 ISK 773

-34.69%

Potato (1kg)

$3.12 ISK 378

$3.96 ISK 481

-21.21%

Onion (1kg)

$1.64 ISK 199

$1.62 ISK 197

1.23%

Lettuce (1 head)

$3.62 ISK 440

$3.70 ISK 449

-2.16%

Water (1.5 liter bottle)

$1.81 ISK 219

$1.77 ISK 215

2.26%

Cigarettes 20 Pack (Marlboro, Camel)

$13.85 ISK 1,681

$13.66 ISK 1,658

1.39%

Wine (Bottle)

$16.32 ISK 1,981

$24.16 ISK 2,933

-32.45%

Local Beer (0.5 liter bottle)

$3.73 ISK 453

$3.66 ISK 444

1.91%

Imported Beer (0.33 liter bottle)

$2.81 ISK 341

$3.43 ISK 416

-18.08%

One-way Ticket (Public Transport)

$3.68 ISK 447

$5.49 ISK 666

-32.97%

Public Transport Monthly Pass (Regular Price)

$77.2 ISK 9,366

$96.1 ISK 11.7K

-19.74%

Taxi Start (Normal Tariff)

$6.35 ISK 771

$6.85 ISK 831

-7.30%

Taxi (Normal Tariff) (1km)

$2.59 ISK 314

$2.90 ISK 352

-10.69%

Taxi 1hour Waiting (Normal Tariff)

$80.2 ISK 9,738

$81.8 ISK 9,935

-1.98%

Gasoline (1 liter)

$2.00 ISK 243

$2.02 ISK 245

-0.99%

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

$68.2K ISK 8.3M

0.02%

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

$55.2K ISK 6.7M

$56.3K ISK 6.8M

-1.97%

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

$95.8 ISK 11.6K

$95.9 ISK 11.6K

-0.18%

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

$32.13 ISK 3,900

$32.16 ISK 3,904

-0.09%

Internet (50+ Mbps, Unlimited Data)

$84.5 ISK 10.3K

$86.4 ISK 10.5K

-2.21%

Gym Membership (Monthly)

$76.7 ISK 9,316

$96.9 ISK 11.8K

-20.77%

Tennis Court (1 Hour on Weekend)

$51.2 ISK 6,216

Cinema Ticket

$19.58 ISK 2,377

$19.28 ISK 2,340

1.56%

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

$406 ISK 49.3K

$1,178 ISK 143.0K

-65.55%

International Primary School, 1 Child (Yearly)

$26.4K ISK 3.2M

$25.8K ISK 3.1M

2.51%

Jeans (Levis 501 Or Similar)

$148 ISK 18.0K

$152 ISK 18.5K

-2.61%

Summer Dress (H&M, Zara, etc)

$66.8 ISK 8,104

$66.5 ISK 8,076

0.36%

Sport Shoes (Adidas, Nike)

$184 ISK 22.4K

$183 ISK 22.3K

0.64%

Men's Leather Business Shoes

$190 ISK 23.1K

$246 ISK 29.8K

-22.74%

1-bedroom Apartment, City Center (Monthly)

$1,862 ISK 226.0K

$2,585 ISK 313.8K

-27.96%

1-bedroom Apartment, Outside City Center (Monthly)

$1,359 ISK 165.0K

$2,098 ISK 254.7K

-35.22%

3-bedroom Apartment, City Center (Monthly)

$2,527 ISK 306.7K

$3,513 ISK 426.5K

-28.08%

3-bedroom Apartment, Outside City Center (Monthly)

$2,040 ISK 247.7K

$2,792 ISK 338.9K

-26.92%

Buy Apartment in City Center (m2)

$8,038 ISK 975.8K

Buy Apartment Outside City Center (m2)

$6,305 ISK 765.5K

Average Monthly Net Salary (After Tax)

$3,819 ISK 463.6K

$4,549 ISK 552.3K

-16.05%

20-Year Fixed Mortgage Interest Rate (Annual %)

8.81

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

Last update for Keflavik: October 26, 2026

Last update for Reykjavik: October 25, 2026

Monthly budget structure

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

Accommodation & Living

Keflavik

$1.4K 45%

Reykjavik

$2.1K 51.9% 54.4% $739

Groceries & Markets

Keflavik

$566 18.8%

Reykjavik

$628 15.5% 10.8% $61

Eating Out

Keflavik

$387 12.8%

Reykjavik

$534 13.2% 37.8% $146

Clothing & Footwear

Keflavik

$265 8.8%

Reykjavik

$291 7.2% 9.9% $26

Monthly Utilities & Internet

Keflavik

$212 7%

Reykjavik

$215 5.3% 1% $2.1

Sport & Entertainment

Keflavik

$116 3.8%

Reykjavik

$135 3.4% 16.8% $20

Getting Around

Keflavik

$111 3.7%

Reykjavik

$139 3.5% 25.4% $28

Cost Breakdown

A one-bedroom apartment in the center runs $1,862 in Keflavik and $2,585 in Reykjavik. Housing cost is often the main lever when comparing two cities.

Reykjavik pays 19% 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: $121 in Keflavik vs $125 in Reykjavik for a mid-range dinner for two. Groceries echo the gap at $566 vs $628 per month, with Keflavik cheaper across the board.

Good to know

🇮🇸 Keflavik

🇮🇸 Reykjavik

🕒 Local time

19:52 7:52 PM

Same time as Keflavik

🌤 Weather

👥 Population

15,000

136,894 Capital

💱 Currency

Icelandic Króna ISK kr

📈 Exchange rate

1,000 ISK = 8.24 USD

1,000 ISK = 7.38 EUR

1,000 ISK = 8.24 USD

1,000 ISK = 7.38 EUR

Exchange rates and currency converter

On the map

Lowest

Highest

Between locations

Keflavik Reykjavik 34 km

From you

Keflavik
Reykjavik

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

Keflavik vs Reykjavik: Cost of Living - Frequently Asked Questions

Keflavik wins on cost – living expenses run 25% 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 16% lower in Keflavik. 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: $1,862 in Keflavik versus $2,585 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 20% less than in Reykjavik. The price difference matters if you commute daily and watch your budget.

Childcare runs $406 in Keflavik versus $1,178 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 cities offer a good standard of living with different trade-offs. Neither is objectively better – the right pick depends on what matters most: affordability, career, cultural scene, or climate.

Safety-wise, Keflavik and Reykjavik are both considered safe, so it’s unlikely to be the deciding factor between them.

Expats usually find Keflavik gentler on the wallet – expenses run 25% less than in Reykjavik. Beyond cost, consider language, visa policies, and how big the international community is in each city.