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: $2,873 in Keflavik versus $3,789 in Reykjavik.

Estimated couple costs with rent: $4,433 in Keflavik versus $5,477 in Reykjavik.

Monthly costs for a family of three with rent: $5,992 in Keflavik versus $7,165 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 115% above, Reykjavik 183% above.

Meal at Budget Restaurant

$23.97 ISK 2,936

$26.55 ISK 3,252

-9.72%

Three-Course Dinner for Two, Mid-Range

$147 ISK 18.0K

$144 ISK 17.6K

2.17%

Fast Food Meal (McDonalds, etc)

$19.75 ISK 2,419

$22.87 ISK 2,801

-13.64%

Cappuccino

$4.11 ISK 504

$5.98 ISK 732

-31.27%

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

$3.12 ISK 382

$3.23 ISK 396

-3.41%

Water (0.33 liter bottle)

$2.50 ISK 307

$2.55 ISK 312

-1.96%

Local Beer (0.5 liter draught)

$8.16 ISK 999

$13.06 ISK 1,599

-37.52%

Imported Beer (0.33 liter bottle)

$8.16 ISK 999

$11.07 ISK 1,356

-26.29%

Milk (1 liter)

$1.96 ISK 240

$1.87 ISK 229

4.81%

White Bread (500g)

$4.14 ISK 508

$4.33 ISK 530

-4.39%

Rice (white) (1kg)

$2.48 ISK 303

$3.63 ISK 444

-31.68%

Eggs

$6.35 ISK 778

$6.51 ISK 797

-2.46%

Local Cheese (1kg)

$18.44 ISK 2,259

$18.39 ISK 2,252

0.27%

Chicken Fillets (1kg)

$23.91 ISK 2,929

$24.53 ISK 3,005

-2.53%

Beef Round Steak (1kg)

$42.20 ISK 5,168

$43.02 ISK 5,269

-1.91%

Apples (1kg)

$2.35 ISK 287

$3.26 ISK 399

-27.91%

Banana (1kg)

$2.48 ISK 304

$2.42 ISK 297

2.48%

Oranges (1kg)

$2.43 ISK 298

$3.04 ISK 372

-20.07%

Tomato (1kg)

$3.95 ISK 483

$5.08 ISK 622

-22.24%

Potato (1kg)

$3.21 ISK 393

$3.57 ISK 438

-10.08%

Onion (1kg)

$2.03 ISK 248

$2.40 ISK 294

-15.42%

Lettuce (1 head)

$3.08 ISK 377

$3.10 ISK 379

-0.65%

Water (1.5 liter bottle)

$1.94 ISK 238

$2.00 ISK 245

-3.00%

Cigarettes 20 Pack (Marlboro, Camel)

$13.45 ISK 1,647

$13.44 ISK 1,646

0.07%

Wine (Bottle)

$16.12 ISK 1,974

$23.20 ISK 2,842

-30.52%

Local Beer (0.5 liter bottle)

$3.71 ISK 454

$3.73 ISK 456

-0.54%

Imported Beer (0.33 liter bottle)

$2.80 ISK 343

$3.37 ISK 413

-16.91%

One-way Ticket (Public Transport)

$3.52 ISK 432

$5.34 ISK 654

-34.08%

Public Transport Monthly Pass (Regular Price)

$74.8 ISK 9,166

$87.5 ISK 10.7K

-14.50%

Taxi Start (Normal Tariff)

$6.24 ISK 765

$6.27 ISK 768

-0.48%

Taxi (Normal Tariff) (1km)

$2.30 ISK 281

$2.56 ISK 313

-10.16%

Taxi 1hour Waiting (Normal Tariff)

$85.2 ISK 10.4K

$87.5 ISK 10.7K

-2.59%

Gasoline (1 liter)

$2.56 ISK 313

$2.48 ISK 303

3.23%

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

$47.2K ISK 5.8M

$47.6K ISK 5.8M

-0.93%

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

$52.6K ISK 6.4M

$51.8K ISK 6.3M

1.55%

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

$87.5 ISK 10.7K

$88.4 ISK 10.8K

-1.02%

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

$27.94 ISK 3,422

$27.80 ISK 3,405

0.50%

Internet (50+ Mbps, Unlimited Data)

$86.2 ISK 10.6K

$85.6 ISK 10.5K

0.65%

Gym Membership (Monthly)

$83.2 ISK 10.2K

Tennis Court (1 Hour on Weekend)

$37.45 ISK 4,587

Cinema Ticket

$17.88 ISK 2,190

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

$319 ISK 39.1K

$322 ISK 39.5K

-0.99%

International Primary School, 1 Child (Yearly)

$30.3K ISK 3.7M

$30.5K ISK 3.7M

-0.63%

Jeans (Levis 501 Or Similar)

$137 ISK 16.7K

$141 ISK 17.2K

-3.05%

Summer Dress (H&M, Zara, etc)

$61.4 ISK 7,515

$62.2 ISK 7,612

-1.29%

Sport Shoes (Adidas, Nike)

$179 ISK 21.9K

$179 ISK 22.0K

-0.42%

Men's Leather Business Shoes

$187 ISK 22.9K

$261 ISK 31.9K

-28.41%

1-bedroom Apartment, City Center (Monthly)

$1,826 ISK 223.6K

$2,244 ISK 274.8K

-18.63%

1-bedroom Apartment, Outside City Center (Monthly)

$1,331 ISK 163.1K

$2,065 ISK 252.9K

-35.52%

3-bedroom Apartment, City Center (Monthly)

$2,481 ISK 303.9K

$3,173 ISK 388.6K

-21.79%

3-bedroom Apartment, Outside City Center (Monthly)

$2,009 ISK 246.0K

$2,734 ISK 334.9K

-26.53%

Buy Apartment in City Center (m2)

$7,787 ISK 953.7K

Buy Apartment Outside City Center (m2)

$6,505 ISK 796.7K

Average Monthly Net Salary (After Tax)

$3,701 ISK 453.3K

$4,496 ISK 550.6K

-17.68%

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: April 26, 2026

Last update for Reykjavik: April 26, 2026

Cost Breakdown

A one-bedroom apartment in the center runs $1,826 in Keflavik and $2,244 in Reykjavik. Housing cost is often the main lever when comparing two cities.

Reykjavik pays 21% 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 $144 in Reykjavik. Groceries flip the comparison at $560 vs $601, 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, Reykjavik earns 21% 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: $1,826 in Keflavik versus $2,244 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 $319 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 $2,873 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.