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: $3,849 in Reykjavik versus $2,853 in Keflavik.

Estimated couple costs with rent: $5,457 in Reykjavik versus $4,401 in Keflavik.

Monthly costs for a family of three with rent: $7,065 in Reykjavik versus $5,949 in Keflavik.

Living in Reykjavik is roughly 35% more expensive than in Keflavik, driven mainly by Eating Out.

Both cities are pricier than the global median: Reykjavik 189% above, Keflavik 114% above.

Meal at Budget Restaurant

$26.85 ISK 3,340

$23.97 ISK 2,981

12.02%

Three-Course Dinner for Two, Mid-Range

$142 ISK 17.7K

$143 ISK 17.8K

-0.57%

Fast Food Meal (McDonalds, etc)

$22.18 ISK 2,759

$20.29 ISK 2,524

9.31%

Cappuccino

$6.17 ISK 768

$3.95 ISK 491

56.20%

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

$3.24 ISK 403

$3.18 ISK 396

1.89%

Water (0.33 liter bottle)

$2.62 ISK 326

$2.52 ISK 314

3.97%

Local Beer (0.5 liter draught)

$12.69 ISK 1,579

$7.95 ISK 989

59.62%

Imported Beer (0.33 liter bottle)

$11.39 ISK 1,417

$8.18 ISK 1,018

39.24%

Milk (1 liter)

$1.87 ISK 232

$1.87 ISK 233

White Bread (500g)

$4.30 ISK 535

$4.18 ISK 520

2.87%

Rice (white) (1kg)

$3.56 ISK 443

$2.37 ISK 295

50.21%

Eggs

$6.28 ISK 782

$6.43 ISK 800

-2.33%

Local Cheese (1kg)

$18.25 ISK 2,270

$18.22 ISK 2,266

0.16%

Chicken Fillets (1kg)

$23.69 ISK 2,947

$24.11 ISK 2,999

-1.74%

Beef Round Steak (1kg)

$42.14 ISK 5,242

$42.82 ISK 5,326

-1.59%

Apples (1kg)

$3.33 ISK 415

$2.35 ISK 292

41.70%

Banana (1kg)

$2.41 ISK 299

$2.44 ISK 304

-1.23%

Oranges (1kg)

$3.00 ISK 373

$2.36 ISK 293

27.12%

Tomato (1kg)

$5.12 ISK 637

$4.00 ISK 497

28.00%

Potato (1kg)

$3.58 ISK 445

$3.06 ISK 380

16.99%

Onion (1kg)

$2.36 ISK 294

$2.01 ISK 251

17.41%

Lettuce (1 head)

$3.14 ISK 390

$3.17 ISK 394

-0.95%

Water (1.5 liter bottle)

$2.03 ISK 252

$1.93 ISK 240

5.18%

Cigarettes 20 Pack (Marlboro, Camel)

$13.89 ISK 1,728

$13.80 ISK 1,717

0.65%

Wine (Bottle)

$23.38 ISK 2,909

$15.90 ISK 1,977

47.04%

Local Beer (0.5 liter bottle)

$3.58 ISK 445

$3.74 ISK 465

-4.28%

Imported Beer (0.33 liter bottle)

$3.21 ISK 400

$2.82 ISK 351

13.83%

One-way Ticket (Public Transport)

$5.09 ISK 633

$3.67 ISK 456

38.69%

Public Transport Monthly Pass (Regular Price)

$86.7 ISK 10.8K

$74.3 ISK 9,242

16.73%

Taxi Start (Normal Tariff)

$6.37 ISK 792

Taxi (Normal Tariff) (1km)

$2.56 ISK 318

$2.26 ISK 281

13.27%

Taxi 1hour Waiting (Normal Tariff)

$86.9 ISK 10.8K

$86.4 ISK 10.7K

0.65%

Gasoline (1 liter)

$2.45 ISK 305

$2.43 ISK 302

0.82%

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

$48.1K ISK 6.0M

$47.5K ISK 5.9M

1.31%

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

$52.6K ISK 6.5M

$52.0K ISK 6.5M

1.08%

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

$87.4 ISK 10.9K

$86.6 ISK 10.8K

0.94%

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

$27.40 ISK 3,408

$27.84 ISK 3,463

-1.58%

Internet (50+ Mbps, Unlimited Data)

$86.5 ISK 10.8K

$86.2 ISK 10.7K

0.32%

Gym Membership (Monthly)

$83.6 ISK 10.4K

Tennis Court (1 Hour on Weekend)

$37.79 ISK 4,701

Cinema Ticket

$17.41 ISK 2,166

$17.61 ISK 2,191

-1.14%

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

$322 ISK 40.1K

$318 ISK 39.6K

1.29%

International Primary School, 1 Child (Yearly)

$30.1K ISK 3.7M

$29.7K ISK 3.7M

1.22%

Jeans (Levis 501 Or Similar)

$137 ISK 17.0K

$141 ISK 17.6K

-3.22%

Summer Dress (H&M, Zara, etc)

$61.0 ISK 7,584

$62.8 ISK 7,816

-2.96%

Sport Shoes (Adidas, Nike)

$181 ISK 22.6K

$180 ISK 22.4K

0.69%

Men's Leather Business Shoes

$271 ISK 33.7K

$188 ISK 23.4K

44.23%

1-bedroom Apartment, City Center (Monthly)

$2,228 ISK 277.1K

$1,829 ISK 227.5K

21.82%

1-bedroom Apartment, Outside City Center (Monthly)

$2,035 ISK 253.1K

$1,350 ISK 167.9K

50.80%

3-bedroom Apartment, City Center (Monthly)

$3,171 ISK 394.5K

$2,442 ISK 303.7K

29.89%

3-bedroom Apartment, Outside City Center (Monthly)

$2,699 ISK 335.7K

$2,007 ISK 249.6K

34.49%

Buy Apartment in City Center (m2)

$7,931 ISK 986.5K

Buy Apartment Outside City Center (m2)

$6,333 ISK 787.8K

Average Monthly Net Salary (After Tax)

$4,563 ISK 567.6K

$3,712 ISK 461.8K

22.92%

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 28, 2026

Last update for Keflavik: July 26, 2026

Cost Breakdown

A one-bedroom apartment in the center runs $2,228 in Reykjavik and $1,829 in Keflavik. Housing cost is often the main lever when comparing two cities.

Reykjavik pays 23% 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: $142 in Reykjavik vs $143 in Keflavik. Groceries flip the comparison at $593 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 35% 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 23% 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: $2,228 in Reykjavik versus $1,829 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 $318 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 $2,853 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 35% less than in Reykjavik. Beyond cost, consider language, visa policies, and how big the international community is in each city.