How Much 5 Days in Iceland Costs: A Realistic Budget

“How much does Iceland cost?” is one of the questions I get most about my trip. In August 2023 I spent five days there with my friends David and Gabby on Guide to Iceland’s summer package: the Blue Lagoon, the south coast waterfalls, Reynisfjara, Jökulsárlón, a glacier hike, and a rental car for our last day on the Golden Circle. Here’s what five days like that typically costs, so you can budget before you book.

Important: I haven’t added my own receipts yet, so every number in this post is an estimate, per person in USD, based on summer prices. They’re ballpark ranges to help you plan, not what we paid. Prices change, so always check current prices when you book.

Some links in this post are affiliate links, including Guide to Iceland, Viator, Wise, World Nomads, Saily and Rentcars. If you book or buy through them, I may earn a small commission at no extra cost to you. I only link to things I’d use myself.

The short answer

Plan on roughly $200–$400 per person per day on the ground in Iceland, not counting flights. For five days, that’s about:

• Leaner trip: around $1,000 (estimate)
• Mid-range trip: around $1,500 (estimate)
• Comfortable trip: around $2,000 (estimate)

Iceland is expensive, and food is where most people get surprised. Flights come on top and vary a lot by where you fly from.

5 days in Iceland: cost breakdown (estimates)

Typical ranges per person in USD, summer prices. Estimates only, check current prices.

• 5-day summer package (4 hotel nights, airport transfers, main tours): roughly $1,400–$2,500, depending on hotels and season. Flights not included.
• Food: about $60–$120 a day. A sit-down dinner in Reykjavík easily runs $50+ per person.
• Blue Lagoon entry: about $70–$120, depending on the ticket level.
• Jökulsárlón boat ride: about $50–$90.
• Glacier hike: about $100–$150 if it’s not in your package.
• One-day rental car: about $80–$150 per car, plus fuel. Split between three of us, like David, Gabby and me, that’s a lot easier on the wallet.

Package vs doing it yourself

We went with a package, and it made the trip simple: hotels, airport transfers and the 2-day south coast tour, with a night out east near Jökulsárlón, all sorted. A package with every extra added on (Blue Lagoon, glacier hike, a day of car rental, dinners out) can land at or above the top of the $200–$400/day range. Doing it yourself can come in lower if you share a rental car and keep meals simple, but you do all the planning and driving.

Here’s my full take in the Guide to Iceland 5-day package review.

Book it: See the 5-day summer package

Getting around

• Airport transfers: Keflavík (KEF) is about 50 km from Reykjavík. Ours were part of the package; otherwise budget for a bus transfer each way.
• Tours vs a car: we used tours for the long south coast stretch and rented a car for just one day for the Golden Circle and the Fagradalsfjall lava fields. If you want to compare rental cars, I use Rentcars.
• Parking: a parking service fee applies at the lots closest to the main sights at Þingvellir, so keep a little room in the budget for that.

Not driving? A Golden Circle day tour from Reykjavík covers Þingvellir, Geysir and Gullfoss:

Food and drink

Food is the line in the budget that adds up fastest. We had dinners out at Kopar by the old harbor and at Matarkjallarinn, and a sit-down dinner like that in Reykjavík easily runs $50+ per person (estimate). Budget about $60–$120 a day for food.

• Hotel breakfast: if it’s included, make the most of it.
• Pack snacks for tour days: stops can be pricey and far apart.
• Drink tap water: it’s safe and very good, so skip the bottled water.
• Tipping isn’t expected, as service is included.

Activities and tours

• Blue Lagoon: about $70–$120 (estimate). Book ahead, it sells out. See Blue Lagoon Comfort tickets, and here’s whether the Blue Lagoon is worth it.
• Jökulsárlón boat ride: about $50–$90 (estimate). See boat tours
• Sólheimajökull glacier hike: about $100–$150 (estimate). My favorite thing we did. See glacier hikes
• Free: the waterfalls (Seljalandsfoss and Skógafoss), Reynisfjara beach, Geysir and Strokkur, sunrise views over Reykjavík, and walking the old harbor at 11:30 PM while it’s still light.

Money tips for Iceland

• Currency: Icelandic króna (ISK). Cards are accepted almost everywhere, so you won’t need much cash.
• Use a card with no foreign transaction fees. I use the Wise card; here’s my Wise card review.
• Mobile data: an eSIM like Saily is usually cheaper than roaming.
• Travel insurance: worth it for glacier hikes, boat tours and weather delays. I recommend World Nomads; compare in Allianz vs World Nomads.
• Travel with friends: splitting a rental car (and sometimes a room) with friends, like we did, cuts costs.
• Go in summer for the most value from each day: the long daylight means you can fit more into each day you’re paying for.

More ways to save in my guides to traveling the world on a budget and staying on budget with a spending journal. Packing smart saves money too: here’s what to pack for Iceland in summer.

Final thoughts

Five days in Iceland isn’t cheap, but it’s easy to plan for. Budget roughly $200–$400 per person per day before flights (estimate), book the Blue Lagoon and tours ahead, and save on food and cash fees. For our group, the package plus one day in a rental car was a good balance of cost and convenience. For the route, grab my free Iceland itinerary and the Iceland map pack, or read how our 5 days went.

FAQ

How much money do I need for 5 days in Iceland?

Roughly $1,000–$2,000 per person on the ground, not counting flights (estimate). A package with lots of extras can come in higher.

Is Iceland expensive?

Yes. Food and tours are the big costs. A sit-down dinner in Reykjavík easily runs $50+ per person (estimate).

Is a package cheaper than doing it yourself?

Not always. A self-drive trip with a shared car and simple meals can cost less, but a package saves planning and driving, and handles the long south coast stretch for you.

Do I need cash in Iceland?

Rarely. Cards are accepted almost everywhere.

What’s free to do in Iceland?

Many of the big sights: the south coast waterfalls, Reynisfjara, Geysir and Strokkur, and Reykjavík’s old harbor. Some sites, like Þingvellir, charge for parking.