Cost of Living Comparison Between Reykjavik and Keflavik Cost of Living Comparison Between Reykjavik and Keflavik

Monthly Cost of Living

Monthly costs for one person with rent: $3,789 in Reykjavik versus $2,873 in Keflavik.

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

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

Living in Reykjavik is roughly 32% more expensive than Keflavik, driven mainly by Eating Out.

Both cities are pricier than the global median: Reykjavik 183% above, Keflavik 115% above.

Meal at Budget Restaurant

$26.55 ISK 3,252

$23.97 ISK 2,936

10.76%

Three-Course Dinner for Two, Mid-Range

$144 ISK 17.6K

$147 ISK 18.0K

-2.12%

Fast Food Meal (McDonalds, etc)

$22.87 ISK 2,801

$19.75 ISK 2,419

15.80%

Cappuccino

$5.98 ISK 732

$4.11 ISK 504

45.50%

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

$3.23 ISK 396

$3.12 ISK 382

3.53%

Water (0.33 liter bottle)

$2.55 ISK 312

$2.50 ISK 307

2.00%

Local Beer (0.5 liter draught)

$13.06 ISK 1,599

$8.16 ISK 999

60.05%

Imported Beer (0.33 liter bottle)

$11.07 ISK 1,356

$8.16 ISK 999

35.66%

Milk (1 liter)

$1.87 ISK 229

$1.96 ISK 240

-4.59%

White Bread (500g)

$4.33 ISK 530

$4.14 ISK 508

4.59%

Rice (white) (1kg)

$3.63 ISK 444

$2.48 ISK 303

46.37%

Eggs

$6.51 ISK 797

$6.35 ISK 778

2.52%

Local Cheese (1kg)

$18.39 ISK 2,252

$18.44 ISK 2,259

-0.27%

Chicken Fillets (1kg)

$24.53 ISK 3,005

$23.91 ISK 2,929

2.59%

Beef Round Steak (1kg)

$43.02 ISK 5,269

$42.20 ISK 5,168

1.94%

Apples (1kg)

$3.26 ISK 399

$2.35 ISK 287

38.72%

Banana (1kg)

$2.42 ISK 297

$2.48 ISK 304

-2.42%

Oranges (1kg)

$3.04 ISK 372

$2.43 ISK 298

25.10%

Tomato (1kg)

$5.08 ISK 622

$3.95 ISK 483

28.61%

Potato (1kg)

$3.57 ISK 438

$3.21 ISK 393

11.21%

Onion (1kg)

$2.40 ISK 294

$2.03 ISK 248

18.23%

Lettuce (1 head)

$3.10 ISK 379

$3.08 ISK 377

0.65%

Water (1.5 liter bottle)

$2.00 ISK 245

$1.94 ISK 238

3.09%

Cigarettes 20 Pack (Marlboro, Camel)

$13.44 ISK 1,646

$13.45 ISK 1,647

-0.07%

Wine (Bottle)

$23.20 ISK 2,842

$16.12 ISK 1,974

43.92%

Local Beer (0.5 liter bottle)

$3.73 ISK 456

$3.71 ISK 454

0.54%

Imported Beer (0.33 liter bottle)

$3.37 ISK 413

$2.80 ISK 343

20.36%

One-way Ticket (Public Transport)

$5.34 ISK 654

$3.52 ISK 432

51.70%

Public Transport Monthly Pass (Regular Price)

$87.5 ISK 10.7K

$74.8 ISK 9,166

16.96%

Taxi Start (Normal Tariff)

$6.27 ISK 768

$6.24 ISK 765

0.48%

Taxi (Normal Tariff) (1km)

$2.56 ISK 313

$2.30 ISK 281

11.30%

Taxi 1hour Waiting (Normal Tariff)

$87.5 ISK 10.7K

$85.2 ISK 10.4K

2.66%

Gasoline (1 liter)

$2.48 ISK 303

$2.56 ISK 313

-3.13%

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

$47.6K ISK 5.8M

$47.2K ISK 5.8M

0.94%

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

$51.8K ISK 6.3M

$52.6K ISK 6.4M

-1.52%

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

$88.4 ISK 10.8K

$87.5 ISK 10.7K

1.03%

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

$27.80 ISK 3,405

$27.94 ISK 3,422

-0.50%

Internet (50+ Mbps, Unlimited Data)

$85.6 ISK 10.5K

$86.2 ISK 10.6K

-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)

$322 ISK 39.5K

$319 ISK 39.1K

1.00%

International Primary School, 1 Child (Yearly)

$30.5K ISK 3.7M

$30.3K ISK 3.7M

0.64%

Jeans (Levis 501 Or Similar)

$141 ISK 17.2K

$137 ISK 16.7K

3.14%

Summer Dress (H&M, Zara, etc)

$62.2 ISK 7,612

$61.4 ISK 7,515

1.30%

Sport Shoes (Adidas, Nike)

$179 ISK 22.0K

$179 ISK 21.9K

0.42%

Men's Leather Business Shoes

$261 ISK 31.9K

$187 ISK 22.9K

39.69%

1-bedroom Apartment, City Center (Monthly)

$2,244 ISK 274.8K

$1,826 ISK 223.6K

22.89%

1-bedroom Apartment, Outside City Center (Monthly)

$2,065 ISK 252.9K

$1,331 ISK 163.1K

55.09%

3-bedroom Apartment, City Center (Monthly)

$3,173 ISK 388.6K

$2,481 ISK 303.9K

27.87%

3-bedroom Apartment, Outside City Center (Monthly)

$2,734 ISK 334.9K

$2,009 ISK 246.0K

36.10%

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)

$4,496 ISK 550.6K

$3,701 ISK 453.3K

21.47%

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: April 26, 2026

Last update for Keflavik: April 26, 2026

Cost Breakdown

A one-bedroom apartment in the center runs $2,244 in Reykjavik and $1,826 in Keflavik. 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: $144 in Reykjavik vs $147 in Keflavik. Groceries flip the comparison at $601 vs $560, 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

Reykjavik vs Keflavik: 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.

Reykjavik pays 21% more on average, which matters when comparing affordability. Whether that higher income actually nets you more depends on your spending habits and housing choices.

Rent for a central apartment: $2,244 in Reykjavik versus $1,826 in Keflavik. 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 $322 in Reykjavik versus $319 in Keflavik. 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, Reykjavik and Keflavik 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.