Last update: Oct 2026

Cost of Living Comparison Between Reykjavik and Keflavik

For one person, living is cheaper in Keflavik: $3,018 a month against $4,040 in Reykjavik, rent and utilities included – about $12,300 less a year. Rent and utilities account for most of the difference.

194

Cost of Living Index in Reykjavik
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Reykjavik Living Index
145

Cost of Living Index in Keflavik
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Keflavik Living Index

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Reykjavik

🇮🇸 Iceland

$4,040

/mo nomad

Keflavik

🇮🇸 Iceland

$3,018

/mo nomad

Monthly Cost of Living

How much you'll spend in Reykjavik and in Keflavik

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 Keflavik actually costs, broken down by who's living it.

Monthly costs for one person with rent: $4,040 in Reykjavik versus $3,018 in Keflavik.

Reykjavik $4,040
Keflavik $3,018

Estimated couple costs with rent: $5,742 in Reykjavik versus $4,529 in Keflavik.

Reykjavik $5,742
Keflavik $4,529

Monthly costs for a family of three with rent: $7,445 in Reykjavik versus $6,041 in Keflavik.

Reykjavik $7,445
Keflavik $6,041

Living in Reykjavik is roughly 34% more expensive than in Keflavik, and outside of rent the biggest gap is in eating out.

Both cities are pricier than the global median: Reykjavik 197% above, Keflavik 122% above.

Meal at Budget Restaurant

$31.42 ISK 3,815

$24.11 ISK 2,927

30.32%

Three-Course Dinner for Two, Mid-Range

$125 ISK 15.2K

$121 ISK 14.7K

3.22%

Fast Food Meal (McDonalds, etc)

$27.18 ISK 3,300

$20.25 ISK 2,458

34.22%

Cappuccino

$6.65 ISK 807

$4.22 ISK 513

57.58%

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

$3.41 ISK 414

$3.36 ISK 408

1.49%

Water (0.33 liter bottle)

$3.04 ISK 369

$3.03 ISK 368

0.33%

Local Beer (0.5 liter draught)

$14.18 ISK 1,721

$8.25 ISK 1,001

71.88%

Imported Beer (0.33 liter bottle)

$12.16 ISK 1,477

$8.15 ISK 990

49.20%

Milk (1 liter)

$2.10 ISK 255

$2.11 ISK 256

-0.47%

White Bread (500g)

$4.14 ISK 502

$4.21 ISK 512

-1.66%

Rice (white) (1kg)

$3.69 ISK 447

$2.50 ISK 303

47.60%

Eggs

$7.09 ISK 860

$6.55 ISK 796

8.24%

Local Cheese (1kg)

$22.32 ISK 2,709

$19.70 ISK 2,391

13.30%

Chicken Fillets (1kg)

$24.78 ISK 3,008

$23.90 ISK 2,902

3.68%

Beef Round Steak (1kg)

$42.67 ISK 5,181

$41.71 ISK 5,063

2.30%

Apples (1kg)

$3.29 ISK 400

$2.44 ISK 296

34.84%

Banana (1kg)

$2.88 ISK 350

$2.41 ISK 292

19.50%

Oranges (1kg)

$3.27 ISK 397

$2.50 ISK 303

30.80%

Tomato (1kg)

$6.37 ISK 773

$4.16 ISK 504

53.13%

Potato (1kg)

$3.96 ISK 481

$3.12 ISK 378

26.92%

Onion (1kg)

$1.62 ISK 197

$1.64 ISK 199

-1.22%

Lettuce (1 head)

$3.70 ISK 449

$3.62 ISK 440

2.21%

Water (1.5 liter bottle)

$1.77 ISK 215

$1.81 ISK 219

-2.21%

Cigarettes 20 Pack (Marlboro, Camel)

$13.66 ISK 1,658

$13.85 ISK 1,681

-1.37%

Wine (Bottle)

$24.16 ISK 2,933

$16.32 ISK 1,981

48.04%

Local Beer (0.5 liter bottle)

$3.66 ISK 444

$3.73 ISK 453

-1.88%

Imported Beer (0.33 liter bottle)

$3.43 ISK 416

$2.81 ISK 341

22.06%

One-way Ticket (Public Transport)

$5.49 ISK 666

$3.68 ISK 447

49.18%

Public Transport Monthly Pass (Regular Price)

$96.1 ISK 11.7K

$77.2 ISK 9,366

24.60%

Taxi Start (Normal Tariff)

$6.85 ISK 831

$6.35 ISK 771

7.87%

Taxi (Normal Tariff) (1km)

$2.90 ISK 352

$2.59 ISK 314

11.97%

Taxi 1hour Waiting (Normal Tariff)

$81.8 ISK 9,935

$80.2 ISK 9,738

2.02%

Gasoline (1 liter)

$2.02 ISK 245

$2.00 ISK 243

1.00%

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

$68.2K ISK 8.3M

-0.02%

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

$56.3K ISK 6.8M

$55.2K ISK 6.7M

2.01%

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

$95.9 ISK 11.6K

$95.8 ISK 11.6K

0.18%

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

$32.16 ISK 3,904

$32.13 ISK 3,900

0.09%

Internet (50+ Mbps, Unlimited Data)

$86.4 ISK 10.5K

$84.5 ISK 10.3K

2.26%

Gym Membership (Monthly)

$96.9 ISK 11.8K

$76.7 ISK 9,316

26.22%

Tennis Court (1 Hour on Weekend)

$51.2 ISK 6,216

Cinema Ticket

$19.28 ISK 2,340

$19.58 ISK 2,377

-1.53%

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

$1,178 ISK 143.0K

$406 ISK 49.3K

190.27%

International Primary School, 1 Child (Yearly)

$25.8K ISK 3.1M

$26.4K ISK 3.2M

-2.45%

Jeans (Levis 501 Or Similar)

$152 ISK 18.5K

$148 ISK 18.0K

2.68%

Summer Dress (H&M, Zara, etc)

$66.5 ISK 8,076

$66.8 ISK 8,104

-0.36%

Sport Shoes (Adidas, Nike)

$183 ISK 22.3K

$184 ISK 22.4K

-0.63%

Men's Leather Business Shoes

$246 ISK 29.8K

$190 ISK 23.1K

29.43%

1-bedroom Apartment, City Center (Monthly)

$2,585 ISK 313.8K

$1,862 ISK 226.0K

38.80%

1-bedroom Apartment, Outside City Center (Monthly)

$2,098 ISK 254.7K

$1,359 ISK 165.0K

54.36%

3-bedroom Apartment, City Center (Monthly)

$3,513 ISK 426.5K

$2,527 ISK 306.7K

39.05%

3-bedroom Apartment, Outside City Center (Monthly)

$2,792 ISK 338.9K

$2,040 ISK 247.7K

36.83%

Buy Apartment in City Center (m2)

$8,038 ISK 975.8K

Buy Apartment Outside City Center (m2)

$6,305 ISK 765.5K

Average Monthly Net Salary (After Tax)

$4,549 ISK 552.3K

$3,819 ISK 463.6K

19.12%

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 25, 2026

Last update for Keflavik: October 26, 2026

Monthly budget structure

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

Accommodation & Living

Reykjavik

$2.1K 51.9%

Keflavik

$1.4K 45% 35.2% $739

Groceries & Markets

Reykjavik

$628 15.5%

Keflavik

$566 18.8% 9.8% $61

Eating Out

Reykjavik

$534 13.2%

Keflavik

$387 12.8% 27.4% $146

Clothing & Footwear

Reykjavik

$291 7.2%

Keflavik

$265 8.8% 9% $26

Monthly Utilities & Internet

Reykjavik

$215 5.3%

Keflavik

$212 7% 1% $2.1

Getting Around

Reykjavik

$139 3.5%

Keflavik

$111 3.7% 20.3% $28

Sport & Entertainment

Reykjavik

$135 3.4%

Keflavik

$116 3.8% 14.4% $20

Cost Breakdown

A one-bedroom apartment in the center runs $2,585 in Reykjavik and $1,862 in Keflavik. Housing cost is often the main lever when comparing two cities.

Reykjavik pays 19% 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: $125 in Reykjavik vs $121 in Keflavik for a mid-range dinner for two. Groceries echo the gap at $628 vs $566 per month, with Keflavik cheaper across the board.

Good to know

🇮🇸 Reykjavik

🇮🇸 Keflavik

🕒 Local time

23:46 11:46 PM

Same time as Reykjavik

🌤 Weather

👥 Population

136,894 Capital

15,000

💱 Currency

Icelandic Króna ISK kr

📈 Exchange rate

1,000 ISK = 8.24 USD

1,000 ISK = 7.38 EUR

1,000 ISK = 8.24 USD

1,000 ISK = 7.38 EUR

Exchange rates and currency converter

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City Median Internet Speeds Comparison (Updated April 2026)

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Digital Nomad Cost of Living Index

Reykjavik vs Keflavik: Cost of Living - Frequently Asked Questions

Keflavik wins on cost – living expenses run 25% 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.

Average pay runs 19% higher in Reykjavik, 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: $2,585 in Reykjavik versus $1,862 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 20% less than in Reykjavik. The price difference matters if you commute daily and watch your budget.

Childcare runs $1,178 in Reykjavik versus $406 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 cities offer a good standard of living with different trade-offs. Neither is objectively better – the right pick depends on what matters most: affordability, career, cultural scene, or climate.

Safety-wise, Reykjavik and Keflavik are both considered safe, so it’s unlikely to be the deciding factor between them.

Expats usually find Keflavik gentler on the wallet – expenses run 25% less than in Reykjavik. Beyond cost, consider language, visa policies, and how big the international community is in each city.