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: $4,054 in Reykjavik versus $3,069 in Keflavik.

Estimated couple costs with rent: $5,691 in Reykjavik versus $4,595 in Keflavik.

Monthly costs for a family of three with rent: $7,329 in Reykjavik versus $6,122 in Keflavik.

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

Both cities are pricier than the global median: Reykjavik 196% above, Keflavik 124% above.

Meal at Budget Restaurant

$30.01 ISK 3,655

$24.41 ISK 2,974

22.94%

Three-Course Dinner for Two, Mid-Range

$134 ISK 16.3K

$137 ISK 16.7K

-2.36%

Fast Food Meal (McDonalds, etc)

$27.02 ISK 3,292

$20.50 ISK 2,497

31.80%

Cappuccino

$7.03 ISK 857

$4.01 ISK 489

75.31%

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

$3.36 ISK 410

$3.22 ISK 392

4.35%

Water (0.33 liter bottle)

$3.35 ISK 408

Local Beer (0.5 liter draught)

$13.80 ISK 1,681

$8.49 ISK 1,035

62.54%

Imported Beer (0.33 liter bottle)

$12.17 ISK 1,482

$8.34 ISK 1,016

45.92%

Milk (1 liter)

$2.03 ISK 248

$2.02 ISK 246

0.50%

White Bread (500g)

$4.29 ISK 522

$4.32 ISK 526

-0.69%

Rice (white) (1kg)

$3.51 ISK 428

$2.40 ISK 292

46.25%

Eggs

$7.13 ISK 869

$6.45 ISK 785

10.54%

Local Cheese (1kg)

$21.15 ISK 2,576

$19.18 ISK 2,336

10.27%

Chicken Fillets (1kg)

$25.14 ISK 3,062

$23.88 ISK 2,909

5.28%

Beef Round Steak (1kg)

$42.98 ISK 5,234

$42.74 ISK 5,206

0.56%

Apples (1kg)

$3.38 ISK 412

$2.44 ISK 297

38.52%

Banana (1kg)

$2.85 ISK 347

$2.41 ISK 293

18.26%

Oranges (1kg)

$3.33 ISK 406

$2.44 ISK 297

36.48%

Tomato (1kg)

$6.30 ISK 767

$4.23 ISK 515

48.94%

Potato (1kg)

$4.08 ISK 497

$3.18 ISK 387

28.30%

Onion (1kg)

$1.66 ISK 202

$1.67 ISK 203

-0.60%

Lettuce (1 head)

$3.66 ISK 446

$3.84 ISK 468

-4.69%

Water (1.5 liter bottle)

$1.76 ISK 215

$1.84 ISK 224

-4.35%

Cigarettes 20 Pack (Marlboro, Camel)

$13.96 ISK 1,700

$14.27 ISK 1,738

-2.17%

Wine (Bottle)

$23.46 ISK 2,858

$16.28 ISK 1,983

44.10%

Local Beer (0.5 liter bottle)

$3.73 ISK 455

$3.83 ISK 467

-2.61%

Imported Beer (0.33 liter bottle)

$3.49 ISK 425

$2.83 ISK 345

23.32%

One-way Ticket (Public Transport)

$5.55 ISK 676

$3.60 ISK 439

54.17%

Public Transport Monthly Pass (Regular Price)

$94.3 ISK 11.5K

$77.8 ISK 9,470

21.31%

Taxi Start (Normal Tariff)

$6.56 ISK 799

$6.53 ISK 796

0.46%

Taxi (Normal Tariff) (1km)

$2.89 ISK 351

$2.71 ISK 330

6.64%

Taxi 1hour Waiting (Normal Tariff)

$73.8 ISK 8,985

$75.5 ISK 9,196

-2.29%

Gasoline (1 liter)

$2.00 ISK 243

$1.92 ISK 234

4.17%

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

$50.6K ISK 6.2M

$51.7K ISK 6.3M

-2.13%

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

$54.2K ISK 6.6M

$54.7K ISK 6.7M

-0.94%

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

$88.8 ISK 10.8K

$87.5 ISK 10.7K

1.53%

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

$32.93 ISK 4,011

$33.19 ISK 4,043

-0.78%

Internet (50+ Mbps, Unlimited Data)

$83.1 ISK 10.1K

$84.8 ISK 10.3K

-2.05%

Gym Membership (Monthly)

$96.3 ISK 11.7K

$79.0 ISK 9,620

21.94%

Tennis Court (1 Hour on Weekend)

$49.54 ISK 6,034

Cinema Ticket

$19.82 ISK 2,414

$19.65 ISK 2,393

0.87%

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

$1,213 ISK 147.7K

$415 ISK 50.5K

192.50%

International Primary School, 1 Child (Yearly)

$31.2K ISK 3.8M

$30.8K ISK 3.8M

1.09%

Jeans (Levis 501 Or Similar)

$156 ISK 19.0K

$158 ISK 19.3K

-1.39%

Summer Dress (H&M, Zara, etc)

$66.3 ISK 8,076

$66.0 ISK 8,042

0.42%

Sport Shoes (Adidas, Nike)

$178 ISK 21.7K

$177 ISK 21.5K

1.09%

Men's Leather Business Shoes

$247 ISK 30.1K

$191 ISK 23.2K

29.38%

1-bedroom Apartment, City Center (Monthly)

$2,466 ISK 300.3K

$1,875 ISK 228.3K

31.53%

1-bedroom Apartment, Outside City Center (Monthly)

$2,078 ISK 253.1K

$1,340 ISK 163.2K

55.11%

3-bedroom Apartment, City Center (Monthly)

$3,438 ISK 418.8K

$2,501 ISK 304.7K

37.45%

3-bedroom Apartment, Outside City Center (Monthly)

$2,764 ISK 336.6K

$2,096 ISK 255.3K

31.85%

Buy Apartment in City Center (m2)

$8,085 ISK 984.8K

Buy Apartment Outside City Center (m2)

$6,258 ISK 762.2K

Average Monthly Net Salary (After Tax)

$4,745 ISK 577.9K

$3,786 ISK 461.1K

25.32%

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: September 13, 2026

Last update for Keflavik: September 14, 2026

Cost Breakdown

A one-bedroom apartment in the center runs $2,466 in Reykjavik and $1,875 in Keflavik. Housing cost is often the main lever when comparing two cities.

Reykjavik pays 25% 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: $134 in Reykjavik vs $137 in Keflavik. Groceries flip the comparison at $627 vs $569, 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.

Average pay runs 25% 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: $2,466 in Reykjavik versus $1,875 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 21% less than in Reykjavik. Both cities have functional networks, but the price difference matters if you're watching your budget.

Childcare runs $1,213 in Reykjavik versus $415 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 $3,069 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.