Cost of Living Comparison Between Reykjavik and Bakkafjordur Cost of Living Comparison Between Reykjavik and Bakkafjordur

Monthly Cost of Living

A single person spends $3,869 per month in Reykjavik vs $251 in Bakkafjordur, rent included.

A couple spends around $5,475 per month in Reykjavik vs $427 in Bakkafjordur, rent included.

A family of three spends $7,081 per month in Reykjavik vs $602 in Bakkafjordur, rent included.

Reykjavik costs about 1443% more than Bakkafjordur, driven mainly by Eating Out.

Reykjavik sits 190% above the global median, while Bakkafjordur is 81% below – they fall on opposite sides of the world average.

Meal at Budget Restaurant

$27.43 ISK 3,418

Three-Course Dinner for Two, Mid-Range

$142 ISK 17.7K

Fast Food Meal (McDonalds, etc)

$22.54 ISK 2,809

Cappuccino

$6.05 ISK 754

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

$3.22 ISK 402

Water (0.33 liter bottle)

$2.52 ISK 314

Local Beer (0.5 liter draught)

$12.93 ISK 1,611

Imported Beer (0.33 liter bottle)

$11.39 ISK 1,420

Milk (1 liter)

$1.89 ISK 235

White Bread (500g)

$4.19 ISK 522

$2.24 ISK 280

87.05%

Rice (white) (1kg)

$3.54 ISK 441

$2.15 ISK 268

64.65%

Eggs

$6.31 ISK 786

$4.83 ISK 602

30.64%

Local Cheese (1kg)

$18.00 ISK 2,243

$9.01 ISK 1,122

99.78%

Chicken Fillets (1kg)

$24.46 ISK 3,048

$11.19 ISK 1,395

118.59%

Beef Round Steak (1kg)

$41.94 ISK 5,226

$10.86 ISK 1,353

286.19%

Apples (1kg)

$3.33 ISK 415

$2.25 ISK 280

48.00%

Banana (1kg)

$2.40 ISK 300

$2.18 ISK 271

10.09%

Oranges (1kg)

$3.03 ISK 377

$2.14 ISK 267

41.59%

Tomato (1kg)

$5.13 ISK 639

$2.23 ISK 278

130.04%

Potato (1kg)

$3.66 ISK 455

$2.19 ISK 273

67.12%

Onion (1kg)

$2.42 ISK 302

$2.24 ISK 280

8.04%

Lettuce (1 head)

$3.17 ISK 394

$1.02 ISK 127

210.78%

Water (1.5 liter bottle)

$1.93 ISK 241

$2.02 ISK 252

-4.46%

Cigarettes 20 Pack (Marlboro, Camel)

$13.76 ISK 1,714

Wine (Bottle)

$22.67 ISK 2,825

Local Beer (0.5 liter bottle)

$3.75 ISK 467

Imported Beer (0.33 liter bottle)

$3.26 ISK 406

One-way Ticket (Public Transport)

$5.30 ISK 661

Public Transport Monthly Pass (Regular Price)

$88.2 ISK 11.0K

Taxi Start (Normal Tariff)

$6.51 ISK 811

Taxi (Normal Tariff) (1km)

$2.57 ISK 321

Taxi 1hour Waiting (Normal Tariff)

$86.4 ISK 10.8K

Gasoline (1 liter)

$2.52 ISK 314

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

$47.7K ISK 5.9M

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

$51.8K ISK 6.5M

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

$87.1 ISK 10.9K

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

$27.13 ISK 3,380

Internet (50+ Mbps, Unlimited Data)

$85.4 ISK 10.6K

Gym Membership (Monthly)

$84.0 ISK 10.5K

Tennis Court (1 Hour on Weekend)

$38.12 ISK 4,750

Cinema Ticket

$17.35 ISK 2,162

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

$319 ISK 39.8K

International Primary School, 1 Child (Yearly)

$30.7K ISK 3.8M

Jeans (Levis 501 Or Similar)

$138 ISK 17.1K

Summer Dress (H&M, Zara, etc)

$62.8 ISK 7,821

Sport Shoes (Adidas, Nike)

$182 ISK 22.7K

Men's Leather Business Shoes

$269 ISK 33.5K

1-bedroom Apartment, City Center (Monthly)

$2,254 ISK 280.8K

1-bedroom Apartment, Outside City Center (Monthly)

$2,008 ISK 250.2K

3-bedroom Apartment, City Center (Monthly)

$3,231 ISK 402.6K

3-bedroom Apartment, Outside City Center (Monthly)

$2,756 ISK 343.4K

Buy Apartment in City Center (m2)

$7,955 ISK 991.2K

Buy Apartment Outside City Center (m2)

$6,156 ISK 767.1K

Average Monthly Net Salary (After Tax)

$4,438 ISK 553.0K

$5,788 ISK 721.1K

-23.31%

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 Reykjavik: July 11, 2026

Last update for Bakkafjordur: July 13, 2026

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.

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 1443% more than Bakkafjordur, with the gap driven mainly by 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 $5,803 per month in Reykjavik and $376 in Bakkafjordur. That covers rent, food, utilities, transport, and enough left over to feel settled – not just surviving.

Monthly expenses with rent come to $3,869 in Reykjavik and $251 in Bakkafjordur. The difference isn't just one category – it shows up across housing, food, transport, and services.

Groceries cost about 138% 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 $251, than in Reykjavik at $3,869. 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 $251 versus $3,869 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.