Cost Of Living For a Student in Reykjavik 2025

Average monthly spending for students in Reykjavik

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

Students in Reykjavik spend around 360,000 ISK per month on average. Depending on the lifestyle, a student can survive with a monthly budget as low as 57,000 ISK or as high as 2.4M ISK. Location is a very important factor and has a huge influence on expenditure and budget.

How do students spend their money in Reykjavik?

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

Housing and accomodation expenditure for students

Students in Reykjavik typically spend from 17% to 28% of their total monthly expenditure on housing with 22% being the average. The average monthly spend on housing is 88,000 ISK with expenditure ranging from 14,000 ISK to 580,000 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 Reykjavik ranges from 3% to 9% of total expenses with 5% being the average for most students. The average monthly cost of utilities is 15,000 ISK with 2,300 ISK and 97,000 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 4,000 ISK to 170,000 ISK in a month on commuting with 26,000 ISK being the norm for most students. This means that money spent on transport constitutes about 6% of total spending on average but can go as low as 5% or as high as 12%.

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 Reykjavik is 73,000 ISK. The cost of groceries can range between 11,000 ISK to 490,000 ISK. Students spend on average about 21% on food and groceries with upper and lower bounds of 15% and 25% respectively.

Healthcare and medical services expenditure for students

Students in Reykjavik allocate 4% to 10% 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 7%. The range of medical expenses range from 3,400 ISK to 150,000 ISK with 22,000 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 2,800 ISK to 120,000 ISK with 18,000 ISK being the average. Speaking of percentages, that equates to 3% to 8% of total expenses with an average of 4% 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 69,000 ISK per month with 11,000 ISK being the minimum spent amount and 460,000 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 Reykjavik

Income and cost of living compatibility

We asked students one simple question and recorded their answers.

Is it affordable or economical to live in Reykjavik?

Around 97% of surveyed students think that living in Reykjavik is affordable with proper budgeting while 3.3% reported that it is just too expensive and not affordable even with frugality and thriftness.

Low-cost alternatives in Reykjavik

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 options75%

Few low-cost options25%

Based on the survey, 75% of the students living in Reykjavik have no problem finding low-cost alternatives to support a frugal lifestyle while 25% 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 Reykjavik whether they have an emergency fund and the answers were as follows.

Yes97%

No3.3%

Based on the survey, 3.3% of the students living in Reykjavik said that they don't have an emergency fund while 97% 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 Reykjavik 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 Reykjavik

Rent Cost in Reykjavik

Monthly Rent Prices

Studio apartment monthly rent cost

67,000 ISK

100,000 ISK

270,000 ISK

MINIMUM

AVERAGE

MAXIMUM

$490

$730

$1,900

1-bedroom apartment monthly rent cost

100,000 ISK

160,000 ISK

400,000 ISK

MINIMUM

AVERAGE

MAXIMUM

$730

$1,200

$2,900

2-bedroom apartment monthly rent cost

130,000 ISK

200,000 ISK

540,000 ISK

MINIMUM

AVERAGE

MAXIMUM

$970

$1,500

$3,900

3-bedroom apartment monthly rent cost

160,000 ISK

270,000 ISK

730,000 ISK

MINIMUM

AVERAGE

MAXIMUM

$1,200

$1,900

$5,300

Furnished apartment monthly rent cost

320,000 ISK

800,000 ISK

1.6M ISK

MINIMUM

AVERAGE

MAXIMUM

$2,300

$5,800

$12,000

Townhouse monthly rent cost

270,000 ISK

400,000 ISK

1.1M ISK

MINIMUM

AVERAGE

MAXIMUM

$1,900

$2,900

$8,300

House monthly rent cost

320,000 ISK

800,000 ISK

1.6M ISK

MINIMUM

AVERAGE

MAXIMUM

$2,300

$5,800

$12,000

Villa monthly rent cost

400,000 ISK

1M ISK

1.6M ISK

MINIMUM

AVERAGE

MAXIMUM

$2,900

$7,300

$12,000

The monthly rental cost of a studio apartment in Reykjavik ranges between 67,000 ISK and 270,000 ISK, meanwhile the cost of monthly rental of a one-bedroom apartment can be anywhere from 100,000 ISK to 400,000 ISK. Two-bedroom rentals rate ranges between 130,000 ISK and 540,000 ISK per month. The monthly rental for a three-bedroom apartment ranges from 160,000 ISK to 730,000 ISK. The average rent of a townhouse in Reykjavik is around 400,000 ISK while house rental costs can be as high as 800,000 ISK per month. Finally, if you want to rent a villa, expect to pay anywhere from 400,000 ISK to 1.6M ISK per month.

Apartment and house prices in Reykjavik

Cost of buying a property

Studio apartment price

13M ISK

20M ISK

40M ISK

MINIMUM

AVERAGE

MAXIMUM

$97,000

$150,000

$290,000

1-bedroom apartment price

16M ISK

27M ISK

100M ISK

MINIMUM

AVERAGE

MAXIMUM

$120,000

$190,000

$730,000

2-bedroom apartment price

27M ISK

80M ISK

160M ISK

MINIMUM

AVERAGE

MAXIMUM

$190,000

$580,000

$1.2M

3-bedroom apartment price

89M ISK

130M ISK

400M ISK

MINIMUM

AVERAGE

MAXIMUM

$650,000

$970,000

$2.9M

Townhouse price

110M ISK

270M ISK

1,000M ISK

MINIMUM

AVERAGE

MAXIMUM

$830,000

$1.9M

$7.3M

House price

130M ISK

800M ISK

1,100M ISK

MINIMUM

AVERAGE

MAXIMUM

$970,000

$5.8M

$8.3M

Villa price

160M ISK

890M ISK

1,300M ISK

MINIMUM

AVERAGE

MAXIMUM

$1.2M

$6.5M

$9.7M

The average price of a studio apartment in Reykjavik can range from 13M ISK to 40M ISK depending on location. One bedroom cost can be anywhere from 16M ISK to 100M ISK. A villa can cost you 890M ISK on average with prices ranging from 160M ISK to 1,300M ISK.

House / apartment prices to income ratio

Property prices in Reykjavik can be x168 to x263 multiples of the monthly income depending on the property and the income of the person. On average, property prices are approximately x168 multiples of the average monthly salary in Reykjavik.

Rent to income ratio

The average rent-to-income ratio in Reykjavik is around 40%. This means that people pay 40% of their income for rent. Those figures can range from 28% to 51% 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 Reykjavik

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

Utility Bill Cost / Electricity + Water + Gas / Student

2,300 ISK

15,000 ISK

97,000 ISK

MINIMUM

AVERAGE

MAXIMUM

$16

$110

$710

Internet and cable cost

3,600 ISK

7,100 ISK

9,500 ISK

MINIMUM

AVERAGE

MAXIMUM

$26

$52

$69

Mobile phone bill and charges

2,900 ISK

4,800 ISK

14,000 ISK

MINIMUM

AVERAGE

MAXIMUM

$21

$35

$100

The average monthly energy and water consumption of students is around 15,000 ISK. The cost of internet and WiFi ranges from 3,600 ISK to 9,500 ISK with 7,100 ISK being the average internet bill. Finally, the average monthly mobile charges is around 4,800 ISK but can range between 2,900 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 Reykjavik is around 4.7%. This means that people pay 4.7% of their income for energy, water, internet, and mobile charges. Those figures can range from 1.2% to 9.3% depending on salary and location.

Food Prices, Dining Expenses, and Grocery Costs in Reykjavik

Prices and cost of goods and services in Reykjavik

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

Fast food combo meal price

710 ISK

1,400 ISK

2,400 ISK

MINIMUM

AVERAGE

MAXIMUM

$5.2

$10

$17

The average price of a regular combo meal at a fast food outlet or chain like McDonald's, Pizzahut, or KFC in Reykjavik is approximatly 1,400 ISK with meal cost ranging from 710 ISK to 2,400 ISK. The typical combo meal consists of a burger, french fries, and a drink.

Restaurant meal for one price

2,500 ISK

3,800 ISK

7,600 ISK

MINIMUM

AVERAGE

MAXIMUM

$18

$28

$55

If you are planning to have a nice meal at a mid-range restaurant, expect to pay anywhere between 2,500 ISK and 7,600 ISK with 3,800 ISK being the average price of a plate for one person at a regular restaurant in Reykjavik.

Fine dining meal for one price

5,100 ISK

7,600 ISK

30,000 ISK

MINIMUM

AVERAGE

MAXIMUM

$37

$55

$220

The price range of a meal at fine-dining restaurant is 5,100 ISK to 30,000 ISK with the average cost being 7,600 ISK for one person. This is what you would expect to pay a top-tier diner in Reykjavik.

Beverage prices, cappuccino, latte etc..

590 ISK

950 ISK

1,400 ISK

MINIMUM

AVERAGE

MAXIMUM

$4.3

$6.9

$10

The average price of a regular beverage like cappuccino or latte at Starbucks, Costa, or similar coffee shops and cafes in Reykjavik is around 950 ISK. Price ranges between 590 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

480 ISK

570 ISK

710 ISK

MINIMUM

AVERAGE

MAXIMUM

$3.5

$4.2

$5.2

The average price of a large bottle of milk in Reykjavik is 570 ISK. The maximum what you would pay for milk is 710 ISK and the minimum being 480 ISK depending on the brand of milk and other properties.

12 eggs price

360 ISK

480 ISK

710 ISK

MINIMUM

AVERAGE

MAXIMUM

$2.6

$3.5

$5.2

A dozen eggs costs around 480 ISK on average with 360 ISK and 710 ISK being the lower and upper limits respectively.

Fresh whole chicken price

810 ISK

1,000 ISK

1,500 ISK

MINIMUM

AVERAGE

MAXIMUM

$5.9

$7.6

$11

The price range of a fresh whole chicken in Reykjavik is between 810 ISK and 1,500 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

950 ISK

1,400 ISK

2,900 ISK

MINIMUM

AVERAGE

MAXIMUM

$6.9

$10

$21

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

380 ISK

520 ISK

740 ISK

MINIMUM

AVERAGE

MAXIMUM

$2.8

$3.8

$5.4

A bag of rice in Reykjavik costs around 520 ISK on average with prices rangeing between 380 ISK and 740 ISK depending on the brand and quality.

Bag of tomatos price

140 ISK

190 ISK

360 ISK

MINIMUM

AVERAGE

MAXIMUM

$1

$1.4

$2.6

A bag of tomatoes costs anywhere from 140 ISK to 360 ISK. A bag of tomatoes denotes 1Kg or 1lb depending on location.

Bag of apples price

250 ISK

330 ISK

550 ISK

MINIMUM

AVERAGE

MAXIMUM

$1.9

$2.4

$4

A bag of apples costs 330 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 Reykjavik is around 28%. This means that students spend 28% of their income on grocery and basic household items. The expenditure can range from 19% to 35% depending on salary and location.

Expenditure on food and grocery for students