Last update: Oct 2026

Cost of Living Comparison Between Reykjavik and Bakkafjordur

For one person, living is cheaper in Bakkafjordur: $250 a month against $4,002 in Reykjavik, rent and utilities included – about $45,000 less a year. Rent and utilities account for most of the difference.

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Cost of Living Index in Reykjavik
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Reykjavik Living Index

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Reykjavik

🇮🇸 Iceland

$4,002

/mo nomad

Bakkafjordur

🇮🇸 Iceland

$250

/mo nomad

Monthly Cost of Living

How much you'll spend in Reykjavik and in Bakkafjordur

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

A single person spends $4,002 per month in Reykjavik vs $250 in Bakkafjordur, rent included.

Reykjavik $4,002
Bakkafjordur $250

A couple spends around $5,705 per month in Reykjavik vs $427 in Bakkafjordur, rent included.

Reykjavik $5,705
Bakkafjordur $427

A family of three spends $7,407 per month in Reykjavik vs $604 in Bakkafjordur, rent included.

Reykjavik $7,407
Bakkafjordur $604

Reykjavik costs about 1500% more than Bakkafjordur, and outside of rent the biggest gap is in eating out.

Reykjavik sits 196% above the global median, while Bakkafjordur is 81% below – they fall on opposite sides of the world average.

Meal at Budget Restaurant

$31.56 ISK 3,828

Three-Course Dinner for Two, Mid-Range

$122 ISK 14.8K

Fast Food Meal (McDonalds, etc)

$26.86 ISK 3,258

Cappuccino

$6.81 ISK 827

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

$3.39 ISK 411

Water (0.33 liter bottle)

$3.20 ISK 388

Local Beer (0.5 liter draught)

$14.14 ISK 1,715

Imported Beer (0.33 liter bottle)

$12.31 ISK 1,493

Milk (1 liter)

$2.10 ISK 255

White Bread (500g)

$4.19 ISK 508

$2.26 ISK 275

85.40%

Rice (white) (1kg)

$3.72 ISK 451

$2.17 ISK 263

71.43%

Eggs

$7.05 ISK 856

$4.88 ISK 591

44.47%

Local Cheese (1kg)

$21.56 ISK 2,615

$8.91 ISK 1,081

141.98%

Chicken Fillets (1kg)

$24.68 ISK 2,993

$11.17 ISK 1,355

120.95%

Beef Round Steak (1kg)

$42.19 ISK 5,117

$11.19 ISK 1,357

277.03%

Apples (1kg)

$3.23 ISK 392

$2.22 ISK 269

45.50%

Banana (1kg)

$2.73 ISK 331

$2.25 ISK 273

21.33%

Oranges (1kg)

$3.17 ISK 384

$2.22 ISK 269

42.79%

Tomato (1kg)

$6.61 ISK 802

$2.19 ISK 265

201.83%

Potato (1kg)

$3.85 ISK 467

$2.18 ISK 264

76.61%

Onion (1kg)

$1.66 ISK 201

$2.24 ISK 272

-25.89%

Lettuce (1 head)

$3.80 ISK 461

$1.02 ISK 124

272.55%

Water (1.5 liter bottle)

$1.75 ISK 212

$1.97 ISK 238

-11.17%

Cigarettes 20 Pack (Marlboro, Camel)

$13.71 ISK 1,662

Wine (Bottle)

$24.21 ISK 2,937

Local Beer (0.5 liter bottle)

$3.53 ISK 428

Imported Beer (0.33 liter bottle)

$3.32 ISK 402

One-way Ticket (Public Transport)

$5.75 ISK 697

Public Transport Monthly Pass (Regular Price)

$93.8 ISK 11.4K

Taxi Start (Normal Tariff)

$6.61 ISK 802

Taxi (Normal Tariff) (1km)

$2.90 ISK 352

Taxi 1hour Waiting (Normal Tariff)

$79.2 ISK 9,602

Gasoline (1 liter)

$2.09 ISK 253

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

$51.0K ISK 6.2M

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

$53.3K ISK 6.5M

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

$95.3 ISK 11.6K

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

$32.35 ISK 3,923

Internet (50+ Mbps, Unlimited Data)

$87.5 ISK 10.6K

Gym Membership (Monthly)

$102 ISK 12.4K

Tennis Court (1 Hour on Weekend)

$50.1 ISK 6,074

Cinema Ticket

$19.88 ISK 2,412

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

$1,194 ISK 144.8K

International Primary School, 1 Child (Yearly)

$25.4K ISK 3.1M

Jeans (Levis 501 Or Similar)

$149 ISK 18.1K

Summer Dress (H&M, Zara, etc)

$66.6 ISK 8,080

Sport Shoes (Adidas, Nike)

$180 ISK 21.8K

Men's Leather Business Shoes

$253 ISK 30.7K

1-bedroom Apartment, City Center (Monthly)

$2,549 ISK 309.2K

1-bedroom Apartment, Outside City Center (Monthly)

$2,056 ISK 249.4K

3-bedroom Apartment, City Center (Monthly)

$3,498 ISK 424.2K

3-bedroom Apartment, Outside City Center (Monthly)

$2,764 ISK 335.2K

Buy Apartment in City Center (m2)

$8,120 ISK 984.9K

Buy Apartment Outside City Center (m2)

$6,254 ISK 758.5K

Average Monthly Net Salary (After Tax)

$4,573 ISK 554.6K

$5,928 ISK 719.0K

-22.86%

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 Reykjavik: October 12, 2026

Last update for Bakkafjordur: October 11, 2026

Monthly budget structure

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

Accommodation & Living

Reykjavik

$2.1K 51.4%

Bakkafjordur

–

Groceries & Markets

Reykjavik

$623 15.6%

Bakkafjordur

–

Eating Out

Reykjavik

$536 13.4%

Bakkafjordur

–

Clothing & Footwear

Reykjavik

$292 7.3%

Bakkafjordur

–

Monthly Utilities & Internet

Reykjavik

$215 5.4%

Bakkafjordur

–

Sport & Entertainment

Reykjavik

$142 3.5%

Bakkafjordur

–

Getting Around

Reykjavik

$138 3.5%

Bakkafjordur

–

Cost Breakdown

Salaries run about 30% higher in Bakkafjordur, which reinforces the cost advantage – you earn more and spend less. Purchasing power leans clearly in its favor.

Good to know

🇮🇸 Reykjavik

🇮🇸 Bakkafjordur

🕒 Local time

20:20 8:20 PM

Same time as Reykjavik

🌤 Weather

👥 Population

136,894 Capital

100

💱 Currency

Icelandic Króna ISK kr

📈 Exchange rate

1,000 ISK = 8.24 USD

1,000 ISK = 7.33 EUR

1,000 ISK = 8.24 USD

1,000 ISK = 7.33 EUR

Exchange rates and currency converter

On the map

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Between locations

Reykjavik Bakkafjordur 390 km

From you

Reykjavik
Bakkafjordur

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

Reykjavik vs Bakkafjordur: Cost of Living - Frequently Asked Questions

Reykjavik costs about 1500% more than Bakkafjordur, and outside of rent the gap comes mainly from eating out. That's enough to noticeably affect everyday spending and lifestyle for anyone choosing between the two.

For a comfortable life, plan on about $6,003 per month in Reykjavik and $375 in Bakkafjordur. That covers rent, food, utilities, transport, and enough left over to feel settled – not just surviving.

Monthly expenses with rent come to $4,002 in Reykjavik and $250 in Bakkafjordur. That's a gap of about 1500%.

Groceries cost about 149% more in Reykjavik, though it depends on what you buy. Local produce may be comparable; imported and premium items show the biggest price gap.

A $1,000 monthly budget goes further in Bakkafjordur, where all-in costs run around $250, than in Reykjavik at $4,002. In Bakkafjordur it covers expenses comfortably, while in Reykjavik it requires careful planning or may not stretch far enough.

For digital nomads, it depends on budget. Bakkafjordur costs $250 versus $4,002 in Reykjavik. Both have workable remote work infrastructure, but the cost gap matters when income varies month to month.

Both have safer and rougher neighborhoods, but overall safety is comparable to other large cities. Neighborhood choice matters more than the city-level comparison – central, well-trafficked areas feel secure in both.

If budget matters most, go with Bakkafjordur. If higher salaries, better infrastructure, or specific career opportunities are the priority, Reykjavik makes more sense. Both are solid long-term options with distinct trade-offs.