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

Monthly Cost of Living

A single person spends $4,048 per month in Reykjavik vs $245 in Bakkafjordur, rent included.

A couple spends around $5,736 per month in Reykjavik vs $417 in Bakkafjordur, rent included.

A family of three spends $7,424 per month in Reykjavik vs $590 in Bakkafjordur, rent included.

Reykjavik costs about 1555% more than Bakkafjordur, driven mainly by Eating Out.

Reykjavik sits 195% above the global median, while Bakkafjordur is 82% below – they fall on opposite sides of the world average.

Meal at Budget Restaurant

$30.26 ISK 3,667

Three-Course Dinner for Two, Mid-Range

$135 ISK 16.4K

Fast Food Meal (McDonalds, etc)

$26.29 ISK 3,186

Cappuccino

$6.95 ISK 842

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

$3.30 ISK 400

Water (0.33 liter bottle)

$3.35 ISK 406

Local Beer (0.5 liter draught)

$14.06 ISK 1,704

Imported Beer (0.33 liter bottle)

$12.60 ISK 1,527

Milk (1 liter)

$2.10 ISK 254

White Bread (500g)

$4.47 ISK 542

$2.26 ISK 273

97.79%

Rice (white) (1kg)

$3.59 ISK 436

$2.25 ISK 273

59.56%

Eggs

$7.13 ISK 865

$4.90 ISK 593

45.51%

Local Cheese (1kg)

$21.34 ISK 2,586

$8.69 ISK 1,053

145.57%

Chicken Fillets (1kg)

$24.37 ISK 2,953

$11.23 ISK 1,360

117.01%

Beef Round Steak (1kg)

$42.10 ISK 5,102

$10.92 ISK 1,323

285.53%

Apples (1kg)

$3.35 ISK 406

$2.23 ISK 270

50.22%

Banana (1kg)

$2.82 ISK 341

$2.22 ISK 269

27.03%

Oranges (1kg)

$3.21 ISK 389

$2.25 ISK 273

42.67%

Tomato (1kg)

$6.24 ISK 756

$2.16 ISK 262

188.89%

Potato (1kg)

$4.01 ISK 487

$2.25 ISK 273

78.22%

Onion (1kg)

$1.70 ISK 206

$2.25 ISK 273

-24.44%

Lettuce (1 head)

$3.83 ISK 464

$1.01 ISK 122

279.21%

Water (1.5 liter bottle)

$1.78 ISK 216

$1.99 ISK 241

-10.55%

Cigarettes 20 Pack (Marlboro, Camel)

$13.75 ISK 1,666

Wine (Bottle)

$24.28 ISK 2,942

Local Beer (0.5 liter bottle)

$3.79 ISK 460

Imported Beer (0.33 liter bottle)

$3.45 ISK 418

One-way Ticket (Public Transport)

$5.81 ISK 704

Public Transport Monthly Pass (Regular Price)

$92.7 ISK 11.2K

Taxi Start (Normal Tariff)

$6.84 ISK 829

Taxi (Normal Tariff) (1km)

$2.90 ISK 352

Taxi 1hour Waiting (Normal Tariff)

$74.5 ISK 9,033

Gasoline (1 liter)

$2.00 ISK 242

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

$50.6K ISK 6.1M

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

$53.4K ISK 6.5M

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

$89.6 ISK 10.9K

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

$33.11 ISK 4,013

Internet (50+ Mbps, Unlimited Data)

$85.1 ISK 10.3K

Gym Membership (Monthly)

$99.0 ISK 12.0K

Tennis Court (1 Hour on Weekend)

$50.3 ISK 6,100

Cinema Ticket

$19.43 ISK 2,354

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

$1,173 ISK 142.1K

International Primary School, 1 Child (Yearly)

$31.2K ISK 3.8M

Jeans (Levis 501 Or Similar)

$161 ISK 19.5K

Summer Dress (H&M, Zara, etc)

$65.1 ISK 7,890

Sport Shoes (Adidas, Nike)

$183 ISK 22.2K

Men's Leather Business Shoes

$249 ISK 30.2K

1-bedroom Apartment, City Center (Monthly)

$2,506 ISK 303.7K

1-bedroom Apartment, Outside City Center (Monthly)

$2,092 ISK 253.5K

3-bedroom Apartment, City Center (Monthly)

$3,408 ISK 413.0K

3-bedroom Apartment, Outside City Center (Monthly)

$2,752 ISK 333.5K

Buy Apartment in City Center (m2)

$7,972 ISK 966.1K

Buy Apartment Outside City Center (m2)

$6,354 ISK 770.0K

Average Monthly Net Salary (After Tax)

$4,606 ISK 558.1K

$5,847 ISK 708.6K

-21.23%

20-Year Fixed Mortgage Interest Rate (Annual %)

8.88

CityCost data is based on AI and user input – minor inaccuracies may occur.

Last update for Reykjavik: August 29, 2026

Last update for Bakkafjordur: August 30, 2026

Cost Breakdown

Salaries run about 27% 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 1555% 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 $6,073 per month in Reykjavik and $367 in Bakkafjordur. That covers rent, food, utilities, transport, and enough left over to feel settled – not just surviving.

Monthly expenses with rent come to $4,048 in Reykjavik and $245 in Bakkafjordur. The difference isn't just one category – it shows up across housing, food, transport, and services.

Groceries cost about 150% 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 $245, than in Reykjavik at $4,048. 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 $245 versus $4,048 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.