MigrantoCost of living in Iceland
What a month costs, how prices compare with other countries, and where the money goes
Monthly cost in Iceland
Spending runs from ISK 254,000 a month in the poorest fifth to ISK 983,000 in the richest
Per person, whole country
ISK 482,000
what a typical person spends in a month
Spending across the population
ISK 254,000richest 20%
ISK 983,000
Where people spend money in Iceland
One person's out-of-pocket spending, averaged across the whole country
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Key facts
The cost of living in Iceland in numbers
Among the most expensive countries in the world
More expensive than 98% of countries. A basket that costs ISK 124,000 at world-middle prices costs ISK 304,000 here.
The most expensive of its neighbours
Every neighbouring country is cheaper. The same basket costs ISK 304,000 here against ISK 249,000 in Ireland, the closest on price.
Dining out takes an unusual share of the budget
It absorbs 15.1% of spending here, or ISK 72,800 a month, against 7.1% in a typical country, 8 points more.
Typical spending takes 81% of the average wage
A typical person spends ISK 482,000 a month while the average take-home wage is ISK 595,000, so 19% of an average wage sits above what a typical person spends.
How living costs in Iceland compare
Neighbours, region and the world on the same monthly figure
What things cost here
How much the same goods and services cost in Iceland against other countries
More expensive than 98% of countries
Where Iceland sits when every country is lined up from cheapest to most expensive
Pakistanmost expensive
Bermuda
middle
A basket of goods and services that costs ISK 124,000 at world-middle prices costs ISK 304,000 here.
Data source: household consumption 2023 (World Bank), International Comparison Program 2021 (World Bank), category breakdown 2023 (Eurostat), adjusted to 2026 using IMF GDP-per-capita growth
Living-cost calculator
What it costs to live in Iceland
Tell us what you earn and spend today — we'll estimate what the same lifestyle would cost in Iceland and how much you could have left each month
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Cost of living in Iceland
ISK 254,000/mo
vs ISK 99,500 in your country
Take-home
ISK 238,000
vs ISK 149,000 in your country
Potential savings
−ISK 16,600
more than in your country
Standard of living
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Frequently asked questions
What is the cost of living in Iceland?
A typical person in Iceland spends about ISK 482,000 a month — around ISK 5,780,000 a year — on housing, groceries, transport and other everyday costs. It's a nationwide average across different regions, cities and types of housing.
What is the standard of living in Iceland?
By spending, Iceland ranks #3 of 185 countries. A typical person spends about ISK 482,000 a month, the poorest 20% about ISK 254,000 and the richest 20% about ISK 983,000. The gap between them shows how unevenly people live.
What is the cost of living in Iceland in US dollars?
The cost of living in Iceland is about $3,874 a month, or roughly $46,488 a year per person.
How much money do you need to live comfortably in Iceland?
It all depends on your standard of living. A modest budget runs about ISK 254,000 a month per person, a typical one around ISK 482,000, and a comfortable life around ISK 601,000. In big cities and for a family, costs are usually higher.
What do people spend the most on in Iceland?
The biggest expense is housing, at about ISK 108,000 a month (22% of spending). Then come dining out (ISK 72,800, 15%) and transport (ISK 68,900, 14%).
Is the average salary in Iceland enough to live on?
In most cases yes, but without much of a cushion. Average spending is about ISK 482,000 a month, while the average take-home pay in Iceland is about ISK 595,000. For more on incomes, see salaries in Iceland.
Is Iceland an expensive country to live in?
Yes. Iceland is more expensive than 99% of countries worldwide and ranks 2nd of 41 in Europe by cost of living.
What currency is used in Iceland?
Iceland uses the Icelandic Króna (ISK). Amounts on this page are shown in it; the currency switcher converts them.
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Living in Iceland
See the full country overview