Last update: Oct 2026

Cost of Living Comparison Between the United Kingdom and Iceland

Name: Iceland
Address: IS

For one person, living is cheaper in the United Kingdom: $2,462 a month against $3,897 in Iceland, rent and utilities included – about $17,200 less a year. Rent and utilities account for about half of the difference.

119

Cost of Living Index in the United Kingdom
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United Kingdom Living Index
187

Cost of Living Index in Iceland
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Iceland Living Index

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🇬🇧 United Kingdom

$2,462

/mo nomad

🇮🇸 Iceland

$3,897

/mo nomad

Monthly Cost of Living

How much you'll spend in the United Kingdom and in Iceland

Real prices from locals and on-the-ground checks – rent, groceries, transit and the daily extras. Here's what a month in the United Kingdom and in Iceland actually costs, broken down by who's living it.

A single person spends $2,462 per month in the United Kingdom vs $3,897 in Iceland, rent included.

United Kingdom $2,462
Iceland $3,897

A couple spends around $3,600 per month in the United Kingdom vs $5,533 in Iceland, rent included.

United Kingdom $3,600
Iceland $5,533

A family of three spends $4,738 per month in the United Kingdom vs $7,168 in Iceland, rent included.

United Kingdom $4,738
Iceland $7,168

Cost ranges are similar: the United Kingdom spans $1,126–$4,646, Iceland $179–$4,040. City choice affects budget similarly in either country.

The cost of living in the United Kingdom is roughly 37% lower than in Iceland on average.

Both the United Kingdom and Iceland are pricier than the global median – the United Kingdom by 81%, Iceland by 186%.

Meal at Budget Restaurant

$21.48 £16.04

$28.48 ISK 3,457

-24.58%

Three-Course Dinner for Two, Mid-Range

$85.7 £64.0

$123 ISK 14.9K

-30.32%

Fast Food Meal (McDonalds, etc)

$10.61 £7.92

$23.70 ISK 2,877

-55.23%

Cappuccino

$4.91 £3.67

$6.09 ISK 740

-19.38%

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

$2.66 £1.99

$3.11 ISK 378

-14.47%

Water (0.33 liter bottle)

$1.87 £1.39

$2.95 ISK 358

-36.61%

Local Beer (0.5 liter draught)

$6.63 £4.95

$12.19 ISK 1,479

-45.61%

Imported Beer (0.33 liter bottle)

$6.84 £5.11

$12.42 ISK 1,508

-44.93%

Milk (1 liter)

$1.68 £1.25

$2.03 ISK 246

-17.24%

White Bread (500g)

$1.72 £1.28

$3.99 ISK 484

-56.89%

Rice (white) (1kg)

$2.17 £1.62

$3.45 ISK 419

-37.10%

Eggs

$4.00 £2.99

$7.17 ISK 870

-44.21%

Local Cheese (1kg)

$9.42 £7.03

$20.65 ISK 2,507

-54.38%

Chicken Fillets (1kg)

$9.19 £6.86

$24.78 ISK 3,008

-62.91%

Beef Round Steak (1kg)

$14.77 £11.03

$42.17 ISK 5,119

-64.98%

Apples (1kg)

$2.97 £2.21

$3.01 ISK 366

-1.33%

Banana (1kg)

$1.62 £1.21

$2.67 ISK 325

-39.33%

Oranges (1kg)

$2.85 £2.13

$3.15 ISK 382

-9.52%

Tomato (1kg)

$3.52 £2.63

$5.93 ISK 719

-40.64%

Potato (1kg)

$1.83 £1.37

$3.86 ISK 469

-52.59%

Onion (1kg)

$1.61 £1.20

$1.85 ISK 225

-12.97%

Lettuce (1 head)

$1.25 £0.93

$3.59 ISK 436

-65.18%

Water (1.5 liter bottle)

$1.66 £1.24

$1.89 ISK 229

-12.17%

Cigarettes 20 Pack (Marlboro, Camel)

$23.65 £17.66

$14.17 ISK 1,721

66.90%

Wine (Bottle)

$10.50 £7.84

$22.52 ISK 2,734

-53.37%

Local Beer (0.5 liter bottle)

$2.98 £2.23

$3.65 ISK 443

-18.36%

Imported Beer (0.33 liter bottle)

$3.51 £2.62

$3.33 ISK 405

5.41%

One-way Ticket (Public Transport)

$3.98 £2.97

$5.51 ISK 669

-27.77%

Public Transport Monthly Pass (Regular Price)

$107 £80.2

$94.7 ISK 11.5K

13.43%

Taxi Start (Normal Tariff)

$5.18 £3.87

$6.77 ISK 822

-23.49%

Taxi (Normal Tariff) (1km)

$2.35 £1.75

$2.87 ISK 349

-18.12%

Taxi 1hour Waiting (Normal Tariff)

$26.84 £20.04

$79.3 ISK 9,631

-66.17%

Gasoline (1 liter)

$1.99 £1.48

$2.35 ISK 285

-15.32%

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

$39.4K £29.5K

$69.7K ISK 8.5M

-43.40%

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

$40.5K £30.2K

$56.0K ISK 6.8M

-27.74%

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

$327 £244

$103 ISK 12.5K

217.47%

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

$18.21 £13.60

$32.44 ISK 3,939

-43.87%

Internet (50+ Mbps, Unlimited Data)

$43.60 £32.56

$87.9 ISK 10.7K

-50.38%

Gym Membership (Monthly)

$42.36 £31.63

$92.3 ISK 11.2K

-54.11%

Tennis Court (1 Hour on Weekend)

$18.22 £13.60

$52.4 ISK 6,359

-65.22%

Cinema Ticket

$13.85 £10.34

$19.09 ISK 2,317

-27.45%

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

$1,868 £1,395

$947 ISK 115.0K

97.22%

International Primary School, 1 Child (Yearly)

$22.6K £16.9K

$26.4K ISK 3.2M

-14.23%

Jeans (Levis 501 Or Similar)

$92.9 £69.4

$149 ISK 18.1K

-37.64%

Summer Dress (H&M, Zara, etc)

$45.92 £34.29

$47.82 ISK 5,806

-3.97%

Sport Shoes (Adidas, Nike)

$102 £75.9

$172 ISK 20.9K

-40.87%

Men's Leather Business Shoes

$102 £76.3

$234 ISK 28.4K

-56.34%

1-bedroom Apartment, City Center (Monthly)

$1,342 £1,002

$2,575 ISK 312.7K

-47.88%

1-bedroom Apartment, Outside City Center (Monthly)

$1,073 £801

$2,041 ISK 247.8K

-47.41%

3-bedroom Apartment, City Center (Monthly)

$2,231 £1,666

$3,504 ISK 425.4K

-36.31%

3-bedroom Apartment, Outside City Center (Monthly)

$1,742 £1,301

$2,712 ISK 329.2K

-35.77%

Buy Apartment in City Center (m2)

$5,601 £4,182

$7,617 ISK 924.7K

-26.46%

Buy Apartment Outside City Center (m2)

$4,265 £3,185

$6,338 ISK 769.4K

-32.71%

Average Monthly Net Salary (After Tax)

$3,349 £2,501

$4,789 ISK 581.4K

-30.06%

20-Year Fixed Mortgage Interest Rate (Annual %)

5.32

9.29

-42.73%

CityCost data is based on AI and user input – minor inaccuracies may occur.

Last update for the United Kingdom: October 26, 2026

Last update for Iceland: October 25, 2026

Monthly budget structure

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

Accommodation & Living

United Kingdom

$1.1K 43.6%

Iceland

$2K 52.4% 90.2% $968

Monthly Utilities & Internet

United Kingdom

$389 15.8%

Iceland

$223 5.7% 42.6% $166

Eating Out

United Kingdom

$328 13.3%

Iceland

$482 12.4% 47.1% $154

Groceries & Markets

United Kingdom

$307 12.5%

Iceland

$611 15.7% 98.7% $303

Clothing & Footwear

United Kingdom

$154 6.3%

Iceland

$271 7% 75.9% $117

Getting Around

United Kingdom

$140 5.7%

Iceland

$138 3.5% 1.7% $2.4

Sport & Entertainment

United Kingdom

$70 2.9%

Iceland

$130 3.4% 86.3% $60

Cost Breakdown

Average rent: $1,287 in the United Kingdom vs $2,368 in Iceland. For reference, capital cities sit at $2,811 in London and $2,585 in Reykjavik.

Average salary: $3,251 in the United Kingdom vs $4,949 in Iceland. The income gap affects purchasing power and how far your budget stretches in each country.

Cost Highlights

Rent is 84% higher in Iceland.

Dining out costs 43% more in Iceland.

Public transport is 25% more expensive in the United Kingdom.

Salaries are 52% higher in Iceland.

Good to know

🇬🇧 United Kingdom

🇮🇸 Iceland

🕒 Local time

16:54 4:54 PM

Same time as the United Kingdom

🌤 Weather

👥 Population

67,326,569

364,260

💱 Currency

British Pound GBP £

Icelandic Króna ISK kr

📈 Exchange rate

1 GBP = 1.34 USD

1 GBP = 1.2 EUR

1,000 ISK = 8.24 USD

1,000 ISK = 7.38 EUR

Exchange rates and currency converter

ISK, USD, EUR to GBP – British Pound Converter

🇺🇸 United States Dollar ($)

🇬🇧 British Pound (£)

British Pound exchange rates as of November 1, 2026: 1 USD = 0.747 GBP (1 GBP = 1.34 USD). 1 EUR = 0.834 GBP (1 GBP = 1.2 EUR).

Icelandic Króna exchange rates as of November 1, 2026: 1 USD = 121 ISK (1,000 ISK = 8.24 USD). 1 EUR = 136 ISK (1,000 ISK = 7.38 EUR).

USD to GBP in detail →

On the map

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Between locations

United Kingdom Iceland 1,890 km ≈ 2 h 45 min nonstop flight

From you

United Kingdom
Iceland

Distances are measured in a straight line. Your location is detected approximately.

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

United Kingdom vs Iceland: Cost of Living - Frequently Asked Questions

The United Kingdom is the cheaper option – living costs run roughly 37% lower on average.

Housing costs more in Iceland: a central one-bedroom averages $2,368 versus $1,287 in the United Kingdom.

$4,000 buys a comfortable lifestyle in the United Kingdom, but in Iceland it only works with careful planning outside the capital. Same money, very different lives.

The United Kingdom is the budget-friendly choice for expats. But cost isn’t everything: visa policies, language, healthcare quality, and job markets all weigh in too.