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: $2,853 in Keflavik versus $3,849 in Reykjavik.

Estimated couple costs with rent: $4,401 in Keflavik versus $5,457 in Reykjavik.

Monthly costs for a family of three with rent: $5,949 in Keflavik versus $7,065 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 114% above, Reykjavik 189% above.

Meal at Budget Restaurant

$23.97 ISK 2,981

$26.85 ISK 3,340

-10.73%

Three-Course Dinner for Two, Mid-Range

$143 ISK 17.8K

$142 ISK 17.7K

0.57%

Fast Food Meal (McDonalds, etc)

$20.29 ISK 2,524

$22.18 ISK 2,759

-8.52%

Cappuccino

$3.95 ISK 491

$6.17 ISK 768

-35.98%

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

$3.18 ISK 396

$3.24 ISK 403

-1.85%

Water (0.33 liter bottle)

$2.52 ISK 314

$2.62 ISK 326

-3.82%

Local Beer (0.5 liter draught)

$7.95 ISK 989

$12.69 ISK 1,579

-37.35%

Imported Beer (0.33 liter bottle)

$8.18 ISK 1,018

$11.39 ISK 1,417

-28.18%

Milk (1 liter)

$1.87 ISK 233

$1.87 ISK 232

White Bread (500g)

$4.18 ISK 520

$4.30 ISK 535

-2.79%

Rice (white) (1kg)

$2.37 ISK 295

$3.56 ISK 443

-33.43%

Eggs

$6.43 ISK 800

$6.28 ISK 782

2.39%

Local Cheese (1kg)

$18.22 ISK 2,266

$18.25 ISK 2,270

-0.16%

Chicken Fillets (1kg)

$24.11 ISK 2,999

$23.69 ISK 2,947

1.77%

Beef Round Steak (1kg)

$42.82 ISK 5,326

$42.14 ISK 5,242

1.61%

Apples (1kg)

$2.35 ISK 292

$3.33 ISK 415

-29.43%

Banana (1kg)

$2.44 ISK 304

$2.41 ISK 299

1.24%

Oranges (1kg)

$2.36 ISK 293

$3.00 ISK 373

-21.33%

Tomato (1kg)

$4.00 ISK 497

$5.12 ISK 637

-21.88%

Potato (1kg)

$3.06 ISK 380

$3.58 ISK 445

-14.53%

Onion (1kg)

$2.01 ISK 251

$2.36 ISK 294

-14.83%

Lettuce (1 head)

$3.17 ISK 394

$3.14 ISK 390

0.96%

Water (1.5 liter bottle)

$1.93 ISK 240

$2.03 ISK 252

-4.93%

Cigarettes 20 Pack (Marlboro, Camel)

$13.80 ISK 1,717

$13.89 ISK 1,728

-0.65%

Wine (Bottle)

$15.90 ISK 1,977

$23.38 ISK 2,909

-31.99%

Local Beer (0.5 liter bottle)

$3.74 ISK 465

$3.58 ISK 445

4.47%

Imported Beer (0.33 liter bottle)

$2.82 ISK 351

$3.21 ISK 400

-12.15%

One-way Ticket (Public Transport)

$3.67 ISK 456

$5.09 ISK 633

-27.90%

Public Transport Monthly Pass (Regular Price)

$74.3 ISK 9,242

$86.7 ISK 10.8K

-14.33%

Taxi Start (Normal Tariff)

$6.37 ISK 792

Taxi (Normal Tariff) (1km)

$2.26 ISK 281

$2.56 ISK 318

-11.72%

Taxi 1hour Waiting (Normal Tariff)

$86.4 ISK 10.7K

$86.9 ISK 10.8K

-0.64%

Gasoline (1 liter)

$2.43 ISK 302

$2.45 ISK 305

-0.82%

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

$47.5K ISK 5.9M

$48.1K ISK 6.0M

-1.29%

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

$52.0K ISK 6.5M

$52.6K ISK 6.5M

-1.06%

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

$86.6 ISK 10.8K

$87.4 ISK 10.9K

-0.93%

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

$27.84 ISK 3,463

$27.40 ISK 3,408

1.61%

Internet (50+ Mbps, Unlimited Data)

$86.2 ISK 10.7K

$86.5 ISK 10.8K

-0.32%

Gym Membership (Monthly)

$83.6 ISK 10.4K

Tennis Court (1 Hour on Weekend)

$37.79 ISK 4,701

Cinema Ticket

$17.61 ISK 2,191

$17.41 ISK 2,166

1.15%

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

$318 ISK 39.6K

$322 ISK 40.1K

-1.27%

International Primary School, 1 Child (Yearly)

$29.7K ISK 3.7M

$30.1K ISK 3.7M

-1.20%

Jeans (Levis 501 Or Similar)

$141 ISK 17.6K

$137 ISK 17.0K

3.33%

Summer Dress (H&M, Zara, etc)

$62.8 ISK 7,816

$61.0 ISK 7,584

3.05%

Sport Shoes (Adidas, Nike)

$180 ISK 22.4K

$181 ISK 22.6K

-0.69%

Men's Leather Business Shoes

$188 ISK 23.4K

$271 ISK 33.7K

-30.67%

1-bedroom Apartment, City Center (Monthly)

$1,829 ISK 227.5K

$2,228 ISK 277.1K

-17.91%

1-bedroom Apartment, Outside City Center (Monthly)

$1,350 ISK 167.9K

$2,035 ISK 253.1K

-33.69%

3-bedroom Apartment, City Center (Monthly)

$2,442 ISK 303.7K

$3,171 ISK 394.5K

-23.01%

3-bedroom Apartment, Outside City Center (Monthly)

$2,007 ISK 249.6K

$2,699 ISK 335.7K

-25.65%

Buy Apartment in City Center (m2)

$7,931 ISK 986.5K

Buy Apartment Outside City Center (m2)

$6,333 ISK 787.8K

Average Monthly Net Salary (After Tax)

$3,712 ISK 461.8K

$4,563 ISK 567.6K

-18.65%

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: July 26, 2026

Last update for Reykjavik: July 28, 2026

Cost Breakdown

A one-bedroom apartment in the center runs $1,829 in Keflavik and $2,228 in Reykjavik. Housing cost is often the main lever when comparing two cities.

Reykjavik pays 23% 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: $143 in Keflavik vs $142 in Reykjavik. Groceries flip the comparison at $560 vs $593, 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 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, salaries run 23% 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: $1,829 in Keflavik versus $2,228 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 17% 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 $322 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 $2,853 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.