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: $3,824 in Reykjavik versus $2,826 in Keflavik.

Estimated couple costs with rent: $5,556 in Reykjavik versus $4,368 in Keflavik.

Monthly costs for a family of three with rent: $7,289 in Reykjavik versus $5,910 in Keflavik.

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

Both cities are pricier than the global median: Reykjavik 184% above, Keflavik 110% above.

Meal at Budget Restaurant

$27.13 ISK 3,378

$24.41 ISK 3,039

11.14%

Three-Course Dinner for Two, Mid-Range

$147 ISK 18.3K

$147 ISK 18.2K

0.37%

Fast Food Meal (McDonalds, etc)

$22.15 ISK 2,757

$20.33 ISK 2,531

8.95%

Cappuccino

$6.08 ISK 756

$3.94 ISK 491

54.31%

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

$3.24 ISK 404

$3.13 ISK 390

3.51%

Water (0.33 liter bottle)

$2.60 ISK 324

$2.53 ISK 314

2.77%

Local Beer (0.5 liter draught)

$13.07 ISK 1,627

$8.12 ISK 1,011

60.96%

Imported Beer (0.33 liter bottle)

$11.14 ISK 1,387

$8.23 ISK 1,024

35.36%

Milk (1 liter)

$1.86 ISK 231

$1.93 ISK 241

-3.63%

White Bread (500g)

$4.34 ISK 541

$4.15 ISK 517

4.58%

Rice (white) (1kg)

$3.63 ISK 451

$2.35 ISK 293

54.47%

Eggs

$6.31 ISK 786

$6.18 ISK 769

2.10%

Local Cheese (1kg)

$18.05 ISK 2,247

$18.22 ISK 2,268

-0.93%

Chicken Fillets (1kg)

$24.02 ISK 2,990

$23.63 ISK 2,942

1.65%

Beef Round Steak (1kg)

$43.15 ISK 5,372

$43.19 ISK 5,377

-0.09%

Apples (1kg)

$3.26 ISK 406

$2.36 ISK 293

38.14%

Banana (1kg)

$2.45 ISK 304

$2.43 ISK 303

0.82%

Oranges (1kg)

$3.11 ISK 387

$2.39 ISK 298

30.13%

Tomato (1kg)

$4.87 ISK 606

$4.04 ISK 503

20.54%

Potato (1kg)

$3.68 ISK 459

$3.04 ISK 378

21.05%

Onion (1kg)

$2.34 ISK 291

$2.04 ISK 254

14.71%

Lettuce (1 head)

$3.04 ISK 379

$3.14 ISK 391

-3.18%

Water (1.5 liter bottle)

$1.92 ISK 239

$1.95 ISK 243

-1.54%

Cigarettes 20 Pack (Marlboro, Camel)

$13.59 ISK 1,692

$13.53 ISK 1,685

0.44%

Wine (Bottle)

$23.29 ISK 2,900

$15.82 ISK 1,970

47.22%

Local Beer (0.5 liter bottle)

$3.71 ISK 462

$3.75 ISK 466

-1.07%

Imported Beer (0.33 liter bottle)

$3.30 ISK 411

$2.74 ISK 341

20.44%

One-way Ticket (Public Transport)

$5.08 ISK 633

$3.57 ISK 444

42.30%

Public Transport Monthly Pass (Regular Price)

$88.4 ISK 11.0K

$75.1 ISK 9,355

17.65%

Taxi Start (Normal Tariff)

$6.30 ISK 784

$6.45 ISK 804

-2.33%

Taxi (Normal Tariff) (1km)

$2.64 ISK 328

$2.30 ISK 286

14.78%

Taxi 1hour Waiting (Normal Tariff)

$86.7 ISK 10.8K

$85.4 ISK 10.6K

1.47%

Gasoline (1 liter)

$2.48 ISK 308

$2.47 ISK 308

0.40%

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

$46.4K ISK 5.8M

$47.1K ISK 5.9M

-1.57%

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

$52.0K ISK 6.5M

$52.8K ISK 6.6M

-1.47%

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

$89.0 ISK 11.1K

$86.3 ISK 10.7K

3.13%

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

$27.11 ISK 3,376

$27.46 ISK 3,418

-1.27%

Internet (50+ Mbps, Unlimited Data)

$83.7 ISK 10.4K

$85.8 ISK 10.7K

-2.44%

Gym Membership (Monthly)

$83.2 ISK 10.4K

Tennis Court (1 Hour on Weekend)

$37.19 ISK 4,630

Cinema Ticket

$17.41 ISK 2,167

$17.45 ISK 2,173

-0.23%

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

$319 ISK 39.7K

$318 ISK 39.5K

0.48%

International Primary School, 1 Child (Yearly)

$29.8K ISK 3.7M

$30.2K ISK 3.8M

-1.25%

Jeans (Levis 501 Or Similar)

$138 ISK 17.1K

$140 ISK 17.4K

-1.43%

Summer Dress (H&M, Zara, etc)

$60.8 ISK 7,569

$62.6 ISK 7,790

-2.84%

Sport Shoes (Adidas, Nike)

$181 ISK 22.5K

$185 ISK 23.1K

-2.30%

Men's Leather Business Shoes

$269 ISK 33.5K

$184 ISK 22.9K

46.48%

1-bedroom Apartment, City Center (Monthly)

$2,246 ISK 279.6K

$1,877 ISK 233.6K

19.66%

1-bedroom Apartment, Outside City Center (Monthly)

$2,025 ISK 252.1K

$1,344 ISK 167.3K

50.69%

3-bedroom Apartment, City Center (Monthly)

$3,220 ISK 400.9K

$2,475 ISK 308.2K

30.11%

3-bedroom Apartment, Outside City Center (Monthly)

$2,728 ISK 339.6K

$2,042 ISK 254.2K

33.58%

Buy Apartment in City Center (m2)

$7,686 ISK 957.0K

Buy Apartment Outside City Center (m2)

$6,267 ISK 780.3K

Average Monthly Net Salary (After Tax)

$4,442 ISK 553.0K

$3,650 ISK 454.4K

21.70%

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: June 8, 2026

Last update for Keflavik: June 8, 2026

Cost Breakdown

A one-bedroom apartment in the center runs $2,246 in Reykjavik and $1,877 in Keflavik. Housing cost is often the main lever when comparing two cities.

Reykjavik pays 22% 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: $147 in Reykjavik vs $147 in Keflavik. Groceries flip the comparison at $596 vs $559, 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.

Reykjavik pays 22% 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: $2,246 in Reykjavik versus $1,877 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 18% less than in Reykjavik. Both cities have functional networks, but the price difference matters if you're watching your budget.

Childcare runs $319 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 $2,826 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.