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

Monthly Cost of Living

A single person spends $3,883 per month in Reykjavik vs $243 in Bakkafjordur, rent included.

A couple spends around $5,535 per month in Reykjavik vs $415 in Bakkafjordur, rent included.

A family of three spends $7,188 per month in Reykjavik vs $587 in Bakkafjordur, rent included.

Reykjavik costs about 1497% more than Bakkafjordur, driven mainly by Eating Out.

Reykjavik sits 190% above the global median, while Bakkafjordur is 82% below – they fall on opposite sides of the world average.

Meal at Budget Restaurant

$27.17 ISK 3,346

Three-Course Dinner for Two, Mid-Range

$144 ISK 17.7K

Fast Food Meal (McDonalds, etc)

$22.42 ISK 2,761

Cappuccino

$6.19 ISK 763

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

$3.28 ISK 405

Water (0.33 liter bottle)

$2.53 ISK 311

Local Beer (0.5 liter draught)

$13.11 ISK 1,615

Imported Beer (0.33 liter bottle)

$11.43 ISK 1,408

Milk (1 liter)

$1.94 ISK 239

White Bread (500g)

$4.29 ISK 528

$2.18 ISK 269

96.79%

Rice (white) (1kg)

$3.72 ISK 458

$2.22 ISK 273

67.57%

Eggs

$6.53 ISK 804

$4.67 ISK 575

39.83%

Local Cheese (1kg)

$17.88 ISK 2,202

$8.77 ISK 1,080

103.88%

Chicken Fillets (1kg)

$24.10 ISK 2,968

$11.20 ISK 1,379

115.18%

Beef Round Steak (1kg)

$42.88 ISK 5,281

$10.98 ISK 1,353

290.53%

Apples (1kg)

$3.35 ISK 412

$2.17 ISK 267

54.38%

Banana (1kg)

$2.51 ISK 309

$2.26 ISK 278

11.06%

Oranges (1kg)

$3.13 ISK 385

$2.16 ISK 266

44.91%

Tomato (1kg)

$4.89 ISK 602

$2.16 ISK 266

126.39%

Potato (1kg)

$3.71 ISK 457

$2.23 ISK 275

66.37%

Onion (1kg)

$2.32 ISK 285

$2.18 ISK 269

6.42%

Lettuce (1 head)

$3.07 ISK 378

$1.01 ISK 125

203.96%

Water (1.5 liter bottle)

$1.99 ISK 246

$1.98 ISK 244

0.51%

Cigarettes 20 Pack (Marlboro, Camel)

$13.85 ISK 1,705

Wine (Bottle)

$23.47 ISK 2,891

Local Beer (0.5 liter bottle)

$3.62 ISK 446

Imported Beer (0.33 liter bottle)

$3.38 ISK 416

One-way Ticket (Public Transport)

$5.10 ISK 628

Public Transport Monthly Pass (Regular Price)

$85.4 ISK 10.5K

Taxi Start (Normal Tariff)

$6.28 ISK 773

Taxi (Normal Tariff) (1km)

$2.57 ISK 317

Taxi 1hour Waiting (Normal Tariff)

$85.8 ISK 10.6K

Gasoline (1 liter)

$2.52 ISK 310

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

$47.2K ISK 5.8M

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

$51.8K ISK 6.4M

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

$86.9 ISK 10.7K

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

$26.94 ISK 3,317

Internet (50+ Mbps, Unlimited Data)

$85.9 ISK 10.6K

Gym Membership (Monthly)

$83.4 ISK 10.3K

Tennis Court (1 Hour on Weekend)

$37.54 ISK 4,623

Cinema Ticket

$17.53 ISK 2,159

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

$321 ISK 39.5K

International Primary School, 1 Child (Yearly)

$30.2K ISK 3.7M

Jeans (Levis 501 Or Similar)

$140 ISK 17.2K

Summer Dress (H&M, Zara, etc)

$60.6 ISK 7,456

Sport Shoes (Adidas, Nike)

$181 ISK 22.3K

Men's Leather Business Shoes

$263 ISK 32.4K

1-bedroom Apartment, City Center (Monthly)

$2,175 ISK 267.8K

1-bedroom Apartment, Outside City Center (Monthly)

$2,023 ISK 249.2K

3-bedroom Apartment, City Center (Monthly)

$3,139 ISK 386.6K

3-bedroom Apartment, Outside City Center (Monthly)

$2,738 ISK 337.1K

Buy Apartment in City Center (m2)

$8,022 ISK 987.9K

Buy Apartment Outside City Center (m2)

$6,223 ISK 766.3K

Average Monthly Net Salary (After Tax)

$4,441 ISK 546.9K

$5,902 ISK 726.8K

-24.75%

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: May 30, 2026

Last update for Bakkafjordur: June 2, 2026

Cost Breakdown

Salaries run about 33% 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 1497% 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 $5,824 per month in Reykjavik and $365 in Bakkafjordur. That covers rent, food, utilities, transport, and enough left over to feel settled – not just surviving.

Monthly expenses with rent come to $3,883 in Reykjavik and $243 in Bakkafjordur. The difference isn't just one category – it shows up across housing, food, transport, and services.

Groceries cost about 142% 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 $243, than in Reykjavik at $3,883. 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 $243 versus $3,883 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.