Cost Of Living For a Student in Iceland 2025

Average monthly spending for students in Iceland

How much money does a student need in a month to survive in Iceland?

Students in Iceland spend around 310,000 ISK per month on average. Depending on the lifestyle, a student can survive with a monthly budget as low as 49,000 ISK or as high as 2.1M ISK. Location is a very important factor and has a huge influence on expenditure and budget.

How do students spend their money in Iceland?

We asked thousands of students about their spending habits and expenditure break down.

Housing and accomodation expenditure for students

Students in Iceland typically spend from 18% to 29% of their total monthly expenditure on housing with 23% being the average. The average monthly spend on housing is 75,000 ISK with expenditure ranging from 12,000 ISK to 500,000 ISK. This cost mainly goes for rent but it also includes other accommodation-related expenses.

Electricity, utilities, energy, water, internet, and mobile expenditure for students

Utility expenditure like electricity, water, and gas in Iceland ranges from 2% to 8% of total expenses with 4% being the average for most students. The average monthly cost of utilities is 13,000 ISK with 1,900 ISK and 84,000 ISK being the upper and lower limits for a student of four.

Transport, fuel, and commute expenditure for students

Fuel consumption and cost of transport depend heavily on whether a student resides near school and work, but roughly speaking a student would expect to spend from 3,400 ISK to 150,000 ISK in a month on commuting with 22,000 ISK being the norm for most students. This means that money spent on transport constitutes about 7% of total spending on average but can go as low as 6% or as high as 13%.

Food, groceries, and basic shopping expenditure for students

The average outlay on groceries and basic houshold items for a typical student in a month in Iceland is 63,000 ISK. The cost of groceries can range between 9,700 ISK to 420,000 ISK. Students spend on average about 20% on food and groceries with upper and lower bounds of 14% and 24% respectively.

Healthcare and medical services expenditure for students

Students in Iceland allocate 3% to 9% of their total monthly expenditure to healthcare including health insurance and out-of-pocket medical expenses. The average spending on medical services and clinic visits is around 6%. The range of medical expenses range from 2,900 ISK to 130,000 ISK with 19,000 ISK being the norm for most students.

Leisure and shopping expenditure for students

This category mostly contains discretionary or non-essential expenses but also some non-discretionary spending like furniture for example. The monthly expenses range from 2,400 ISK to 100,000 ISK with 16,000 ISK being the average. Speaking of percentages, that equates to 3% to 9% of total expenses with an average of 5% for most students.

Education and schooling expenditure for students

Spending on education can vary drastically between different students. On average, education constitutes 19% of the monthly expenditure of students with 12% and 24% being the lower and upper bounds respectively. The average reported education cost is 60,000 ISK per month with 9,200 ISK being the minimum spent amount and 400,000 ISK being the maximum.

A typical and healthy budgeting structure

The 50/30/20 rule

Spending among different people can vary significantly based on factors such as their income, lifestyle, location, and personal preferences. A commonly used guideline for budgeting is the 50/30/20 rule, which suggests allocating your income into three main categories in the following percentages.

• 50% for needs and financial obligations

  This category includes essential expenses like housing, utilities, groceries, transportation, and healthcare.

• 30% for wants and discretionary spending

  This category covers discretionary spending on non-essential items, such as dining out, entertainment, travel, and other lifestyle choices.

• 20% for savings and emergency fund

  This is the percentage that must be allocated to savings, emergency funds, and retirement accounts.

About financial planning, money management, and household budgeting

Affordable living in Iceland

Income and cost of living compatibility

We asked students one simple question and recorded their answers.

Is it affordable or economical to live in Iceland?

Around 83% of surveyed students think that living in Iceland is affordable with proper budgeting while 17% reported that it is just too expensive and not affordable even with frugality and thriftness.

Low-cost alternatives in Iceland

People are always looking for ways to cut down expenses and reduce expenditures. The hallmark of any affordable place is the availability of discount stores, bargain deals, smart or secondhand shopping, refurbished items, and couponing. We asked students how easily cost-cutting is and the answers were distributed as follows:

Plenty of low-cost options64%

Few low-cost options36%

Based on the survey, 64% of the students living in Iceland have no problem finding low-cost alternatives to support a frugal lifestyle while 36% think that thriftness is difficult due to scarcity in discount markets and secondhand outlets.

Emergency Funds For Students

An emergency fund is a financial safety net comprised of easily accessible savings set aside to cover unexpected expenses or financial emergencies, typically amounting to three to six months' worth of living expenses. We asked students of Iceland whether they have an emergency fund and the answers were as follows.

Yes83%

No17%

Based on the survey, 17% of the students living in Iceland said that they don't have an emergency fund while 83% said that they do.

Financial Literacy in Iceland

Financial literacy is the knowledge of concepts and principles related to personal finance that allow individuals to make informed decisions regarding their money such as budgeting, saving, investing, borrowing, managing debt, financial risk management, and planning.

Financial Leteracy78%

We asked student guardians and parents in Iceland whether they acquired any adequate personal financial training in their lives. Approximately 22% of the people who participated in the survey said that they are not well informed about the topics of budgeting, saving, etc., and just manage things based on their own experience, while 78% said that they know about the general principles of personal finance from sources other than their own experience.

Difficulty in Budgeting and Financial Planning

We wanted to understand whether students of Iceland have problems or difficulties in managing their expenditures and savings so we asked people one simple question: do you struggle with your personal finances? 13% of the participants reported that they indeed struggle in creating budgets and in organizing their finances while 87% said that they have everything under control.

Struggles with finance13%

Easily manages finances87%

Housing costs, accommodation, and housing affordability in Iceland

Rent Cost in Iceland

Monthly Rent Prices

Studio apartment monthly rent cost

57,000 ISK

86,000 ISK

230,000 ISK

MINIMUM

AVERAGE

MAXIMUM

$420

$630

$1,700

1-bedroom apartment monthly rent cost

86,000 ISK

140,000 ISK

340,000 ISK

MINIMUM

AVERAGE

MAXIMUM

$630

$1,000

$2,500

2-bedroom apartment monthly rent cost

110,000 ISK

170,000 ISK

460,000 ISK

MINIMUM

AVERAGE

MAXIMUM

$840

$1,300

$3,300

3-bedroom apartment monthly rent cost

140,000 ISK

230,000 ISK

630,000 ISK

MINIMUM

AVERAGE

MAXIMUM

$1,000

$1,700

$4,600

Furnished apartment monthly rent cost

280,000 ISK

690,000 ISK

1.4M ISK

MINIMUM

AVERAGE

MAXIMUM

$2,000

$5,000

$10,000

Townhouse monthly rent cost

230,000 ISK

340,000 ISK

990,000 ISK

MINIMUM

AVERAGE

MAXIMUM

$1,700

$2,500

$7,200

House monthly rent cost

280,000 ISK

690,000 ISK

1.4M ISK

MINIMUM

AVERAGE

MAXIMUM

$2,000

$5,000

$10,000

Villa monthly rent cost

340,000 ISK

860,000 ISK

1.4M ISK

MINIMUM

AVERAGE

MAXIMUM

$2,500

$6,300

$10,000

The monthly rental cost of a studio apartment in Iceland ranges between 57,000 ISK and 230,000 ISK, meanwhile the cost of monthly rental of a one-bedroom apartment can be anywhere from 86,000 ISK to 340,000 ISK. Two-bedroom rentals rate ranges between 110,000 ISK and 460,000 ISK per month. The monthly rental for a three-bedroom apartment ranges from 140,000 ISK to 630,000 ISK. The average rent of a townhouse in Iceland is around 340,000 ISK while house rental costs can be as high as 690,000 ISK per month. Finally, if you want to rent a villa, expect to pay anywhere from 340,000 ISK to 1.4M ISK per month.

Apartment and house prices in Iceland

Cost of buying a property

Studio apartment price

11M ISK

17M ISK

34M ISK

MINIMUM

AVERAGE

MAXIMUM

$84,000

$130,000

$250,000

1-bedroom apartment price

14M ISK

23M ISK

86M ISK

MINIMUM

AVERAGE

MAXIMUM

$100,000

$170,000

$630,000

2-bedroom apartment price

23M ISK

69M ISK

140M ISK

MINIMUM

AVERAGE

MAXIMUM

$170,000

$500,000

$1M

3-bedroom apartment price

77M ISK

110M ISK

340M ISK

MINIMUM

AVERAGE

MAXIMUM

$560,000

$840,000

$2.5M

Townhouse price

99M ISK

230M ISK

860M ISK

MINIMUM

AVERAGE

MAXIMUM

$720,000

$1.7M

$6.3M

House price

110M ISK

690M ISK

990M ISK

MINIMUM

AVERAGE

MAXIMUM

$840,000

$5M

$7.2M

Villa price

140M ISK

770M ISK

1,100M ISK

MINIMUM

AVERAGE

MAXIMUM

$1M

$5.6M

$8.4M

The average price of a studio apartment in Iceland can range from 11M ISK to 34M ISK depending on location. One bedroom cost can be anywhere from 14M ISK to 86M ISK. A villa can cost you 770M ISK on average with prices ranging from 140M ISK to 1,100M ISK.

House / apartment prices to income ratio

Property prices in Iceland can be x144 to x226 multiples of the monthly income depending on the property and the income of the person. On average, property prices are approximately x144 multiples of the average monthly salary in Iceland.

Rent to income ratio

The average rent-to-income ratio in Iceland is around 34%. This means that people pay 34% of their income for rent. Those figures can range from 24% to 44% depending on the salary, location, and type of property.

Housing affordability index

The housing affordability index measures how affordable accommodation is in a particular place. This can measured in multiple ways, the most common being housing expenditure to total expenditure ratio and the rent to income ratio. The housing expenditure ratio is a figure reported by individuals on the percentage they allocate for housing. Rent to income ratio is calculated by dividing the average monthly rent by the average income. Because these values are both percentages, we can find their average and get the best of the two worlds.

Property Taxes

Real estate owners pay property taxes to local tax authorities, which are determined by the assessed value of their property. Typically, these taxes are paid once a year. Property tax funds contribute to community development, financing infrastructure improvements, public services, and local education initiatives.

Home Maintenance Costs

Home maintenance costs encompass various expenses associated with the upkeep and repair of a residence. These expenditures include regular tasks such as lawn care, pest control, and HVAC system servicing, as well as occasional repairs and renovations like fixing leaks, painting, or replacing appliances.

Urban vs. rural living costs

Urban living typically entails higher housing and transportation costs due to demand and limited space, while rural areas generally offer lower housing expenses but may have higher prices for goods and services. The differnce in rental rates between urban areas and rural areas can be as high as 300% in some cases.

Monthly costs and expenses of energy and basic utilities in Iceland

Energy, electricity, water, gas, internet, and mobile cost in Iceland

Utility Bill Cost / Electricity + Water + Gas / Student

1,900 ISK

13,000 ISK

84,000 ISK

MINIMUM

AVERAGE

MAXIMUM

$14

$91

$610

Internet and cable cost

3,400 ISK

6,900 ISK

9,200 ISK

MINIMUM

AVERAGE

MAXIMUM

$25

$50

$67

Mobile phone bill and charges

2,800 ISK

4,600 ISK

14,000 ISK

MINIMUM

AVERAGE

MAXIMUM

$20

$33

$100

The average monthly energy and water consumption of students is around 13,000 ISK. The cost of internet and WiFi ranges from 3,400 ISK to 9,200 ISK with 6,900 ISK being the average internet bill. Finally, the average monthly mobile charges is around 4,600 ISK but can range between 2,800 ISK and 14,000 ISK depending on consumption. Mobile charges include both calling minutes as well as data packages.

Energy / Utility expense to income ratio

The average utility-to-income ratio in Iceland is around 4%. This means that people pay 4% of their income for energy, water, internet, and mobile charges. Those figures can range from 1% to 8% depending on salary and location.

Food Prices, Dining Expenses, and Grocery Costs in Iceland

Prices and cost of goods and services in Iceland

Dining out, food, and beverages costs. Price variations for common food items.

Fast food combo meal price

690 ISK

1,400 ISK

2,300 ISK

MINIMUM

AVERAGE

MAXIMUM

$5

$10

$17

The average price of a regular combo meal at a fast food outlet or chain like McDonald's, Pizzahut, or KFC in Iceland is approximatly 1,400 ISK with meal cost ranging from 690 ISK to 2,300 ISK. The typical combo meal consists of a burger, french fries, and a drink.

Restaurant meal for one price

2,300 ISK

3,400 ISK

6,900 ISK

MINIMUM

AVERAGE

MAXIMUM

$17

$25

$50

If you are planning to have a nice meal at a mid-range restaurant, expect to pay anywhere between 2,300 ISK and 6,900 ISK with 3,400 ISK being the average price of a plate for one person at a regular restaurant in Iceland.

Fine dining meal for one price

4,600 ISK

6,900 ISK

28,000 ISK

MINIMUM

AVERAGE

MAXIMUM

$33

$50

$200

The price range of a meal at fine-dining restaurant is 4,600 ISK to 28,000 ISK with the average cost being 6,900 ISK for one person. This is what you would expect to pay a top-tier diner in Iceland.

Beverage prices, cappuccino, latte etc..

570 ISK

920 ISK

1,400 ISK

MINIMUM

AVERAGE

MAXIMUM

$4.2

$6.7

$10

The average price of a regular beverage like cappuccino or latte at Starbucks, Costa, or similar coffee shops and cafes in Iceland is around 920 ISK. Price ranges between 570 ISK and 1,400 ISK depending on the type of beverage, the size, and optional add-ons.

Grocery and market costs

Large bottle of milk price

460 ISK

550 ISK

690 ISK

MINIMUM

AVERAGE

MAXIMUM

$3.3

$4

$5

The average price of a large bottle of milk in Iceland is 550 ISK. The maximum what you would pay for milk is 690 ISK and the minimum being 460 ISK depending on the brand of milk and other properties.

12 eggs price

340 ISK

460 ISK

690 ISK

MINIMUM

AVERAGE

MAXIMUM

$2.5

$3.3

$5

A dozen eggs costs around 460 ISK on average with 340 ISK and 690 ISK being the lower and upper limits respectively.

Fresh whole chicken price

780 ISK

1,000 ISK

1,400 ISK

MINIMUM

AVERAGE

MAXIMUM

$5.7

$7.4

$10

The price range of a fresh whole chicken in Iceland is between 780 ISK and 1,400 ISK depending on the size of the chicken and whether it is oraganic or not. The average price is approximatly 1,000 ISK.

Pack of beef price

920 ISK

1,400 ISK

2,800 ISK

MINIMUM

AVERAGE

MAXIMUM

$6.7

$10

$20

The price of a regular pack of beef or meat is around 1,400 ISK. A pack of beef contains around 1Kg or 1lb depending on packing.

Medium bag of rice price

370 ISK

510 ISK

720 ISK

MINIMUM

AVERAGE

MAXIMUM

$2.7

$3.7

$5.2

A bag of rice in Iceland costs around 510 ISK on average with prices rangeing between 370 ISK and 720 ISK depending on the brand and quality.

Bag of tomatos price

140 ISK

180 ISK

340 ISK

MINIMUM

AVERAGE

MAXIMUM

$1

$1.3

$2.5

A bag of tomatoes costs anywhere from 140 ISK to 340 ISK. A bag of tomatoes denotes 1Kg or 1lb depending on location.

Bag of apples price

250 ISK

320 ISK

530 ISK

MINIMUM

AVERAGE

MAXIMUM

$1.8

$2.3

$3.9

A bag of apples costs 320 ISK on average. A bag of apples denotes 1Kg or 1lb depending on location.

Grocery and food expenditure to income ratio

The average grocery-to-income ratio in Iceland is around 24%. This means that students spend 24% of their income on grocery and basic household items. The expenditure can range from 16% to 30% depending on salary and location.

Expenditure on food and grocery for students