Heading to Iceland? Here’s How Much Spending Money You’ll Really Need

37 minutes ago
6 min read

Location: Iceland

Great for: Singles, Couples, Groups, Families, and Honeymoons

Author: Tina Vestal, Certified Travel Counselor and Owner of Vibrant Travel

White church with tall black spires above colorful houses, blue water, and misty mountains in a quiet coastal town — Reykjavik from Perlan Observation (with telephoto lens)

One of the questions travelers often ask before an Iceland vacation is, “How much spending money should I bring?”

If your flights, hotel, and tours are already paid for, you may be surprised by how little cash you actually need to carry. Iceland is a very card-friendly destination, so for most travelers, the bigger question is how much you should budget for meals and souvenirs during your stay.

For a one-week trip, I recommend planning on approximately $500–$900 per person for meals and souvenirs, depending on how and where you like to eat and how much shopping you plan to do.

Breakfast tray with rye bread, ham and smoked salmon, crepe, butter, and an Icelandic flag on a wooden table. — Funky Food Tour with Traditional Food

Meals: What Should You Budget?

Food is one area where Iceland can feel expensive, particularly if you're accustomed to U.S. prices. However, there are plenty of ways to control your spending.

For a typical traveler, I would budget approximately $50–$100 per person per day for food if meals are not included with your hotel or tours. That could look something like this:

Breakfast: $15–$25

A simple breakfast at a café, bakery, or restaurant can easily run $15–$25. A more substantial breakfast or hotel breakfast may cost more.

Lunch: $15–$30

Lunch is often the easiest meal to keep reasonably priced. Bakeries, cafés, soup shops, casual restaurants, and Iceland's famous hot dogs can provide less expensive options.

Dinner: $25–$50+

Dinner is where your budget can climb quickly. A casual meal may be around $25–$35, while a nicer restaurant can easily reach $50 or more per person before drinks.

And don't forget snacks, coffee, bottled water, or that irresistible Icelandic pastry you discover along the way. Those little purchases can add up over a week.

A Tip From Vibrant Travel

Vibrant Travel attempts to include breakfast at the hotel whenever possible or when requested by the traveler. When breakfast is included, that can eliminate one meal expense each day and make your daily food budget considerably easier to manage.

If breakfast is included with your stay, you could reasonably reduce your food budget by approximately $15–$25 per day.

What About Icelandic Water?

Here's one place you can save money for sure! Iceland has exceptionally clean, great-tasting tap water, so there is generally no need to purchase bottled water throughout your trip. Bring a refillable water bottle and fill it at your hotel or other appropriate locations.

That's one less recurring expense.

Four Traditional Icelandic Chocolate bars on a dark countertop, featuring waterfall, glacier, lava, and aurora scenes. — Icelandic Chocolate

Souvenirs: How Much Should You Set Aside?

This one is much harder to predict because souvenirs are completely personal.

Someone may leave Iceland with nothing more than a postcard and a magnet. Another traveler may decide they absolutely need an Icelandic wool sweater, hand made jewelry, local artwork, dried fish, and enough Icelandic chocolate to stock the pantry. No, I'm not talking about me, well maybe, the chocolate is amazing :-) The picture is only some of what I brought back ;-)

For a one-week trip, I suggest setting aside $100–$300 per person for souvenirs.

Here are some common Icelandic purchases you might encounter:

Small souvenirs: $5–$25

Magnets
Postcards
Keychains
Christmas ornaments
Small Icelandic-themed gifts
Chocolate and other packaged treats

Mid-range souvenirs: $25–$75

Icelandic skincare products
Local crafts
Jewelry
Specialty food products
Hats, scarves, or other smaller wool items

Larger purchases: $75–$200+

Icelandic wool sweaters
Quality handmade jewelry
Artwork
Larger specialty items

If you're a serious shopper, or have a long gift list waiting at home, you may want to increase your souvenir budget accordingly.

Want more ideas for what to bring home from Iceland? I've put together a separate guide to Icelandic souvenirs, and created a video including what to look for, where to shop, and which purchases are worth considering.

Pedestrians walk along a rainbow-painted street in a gray city center, with graffiti walls, shops, and a distant church spire. — Shopping Street leading to Hallgrímskirkja Church

So, How Much Should You Actually Budget?

For a seven-day Iceland vacation, with your flights, hotel, and tours already paid, here's a good rule of thumb:

Traveler Style	Meals	Souvenirs	Total
Budget-conscious	$350–$450	$50–$100	$400–$550
Comfortable	$450–$600	$100–$200	$550–$800
Foodie & Shopper	$600–$750+	$200–$300+	$800–$1,050+

These are planning ranges, not fixed costs. Your actual spending will depend on how many meals are included with your hotel or tours, where you choose to eat, and whether you discover something you simply can't leave Iceland without buying.

Icelandic currency banknotes and coins displayed over a waterfall and mountain landscape, with denominations labeled.

Do I Need to Bring Icelandic Cash?

Probably not much. Iceland is a destination where travelers can make most purchases by card, so you generally don't need to carry a large amount of cash.

I still recommend having a small amount of Icelandic currency or an alternative payment method available, just in case. More importantly, make sure your credit or debit card has a PIN if required and check with your bank about any travel notification requirements.

Also, don't forget to check whether your credit card charges foreign transaction fees. A card with no foreign transaction fee can save you money throughout your trip. And always charge in Kronur not US Dollars because the merchant may charge transaction fees.

Tourists in bright raincoats stand on a rocky shore, photographing a roaring waterfall engulfed in mist and spray. — Skogafoss Waterfall

A Few Easy Ways to Save Money on Meals and Souvenirs

Iceland can be expensive, but there are some easy ways to keep your spending under control without feeling like you're missing out.

Take advantage of breakfast when it is included with your hotel. Vibrant Travel attempts to include breakfast whenever possible or when specifically requested. For other meals, bakeries, cafés, soup shops, casual restaurants, and Iceland's famous hot dogs can be less expensive alternatives to sit-down dinners. Picking up snacks, drinks, sandwiches, or simple foods at a grocery store can also help, especially on touring days. And don't forget your refillable water bottle, Iceland's tap water is excellent, so there's little reason to spend money on bottled water.

For souvenirs, where you shop can make a difference. Tourist shops are convenient, but don't overlook grocery stores, local shops, and markets. Reykjavík's Kolaportið flea market is a fun place to browse for Icelandic woolens, vintage items, crafts, jewelry, food products, and unusual finds. Prices vary considerably from vendor to vendor, so take a little time to compare before buying. In my experience some prices were good and other a bit high but I bought some items there.

Grocery stores can also be a surprisingly good place to find Icelandic chocolate, candy, coffee, salt, skincare products, and other locally produced items often without the tourist-shop markup. If you're looking for something special, consider buying one meaningful item rather than lots of smaller purchases that can quickly add up.

And remember, you don't have to bring home a suitcase full of souvenirs to bring home wonderful memories!

The Bottom Line

For most travelers taking a one-week Iceland vacation where the flights, hotel, and tours are already paid, I would suggest planning on approximately $600–$800 per person for meals and souvenirs.

If breakfast is included, you eat a mixture of casual and nicer meals, and you're not planning a major shopping spree, you may spend less.

If you're someone who enjoys memorable dinners, frequent café stops, and bringing home special souvenirs, I'd lean toward $800–$1,000 or more.

The good news? You don't need to walk around Iceland carrying that amount of cash. Think of it as your overall spending budget, with most purchases made by card.

And honestly, if you come home with an Icelandic wool sweater, a few chocolates, and a collection of photos you'll be talking about for years, I'd say your spending money was well spent.

A Note About Prices

Please note that prices and exchange rates can change, so the amounts above are intended as general budgeting guidelines rather than guaranteed costs. Your actual spending may vary based on where you eat, what you purchase, current prices in Iceland, and the exchange rate at the time of your trip.

About Vibrant Travel

At Vibrant Travel, we help travelers explore Europe, Asia, and bucket-list destinations around the world. Whether you're looking for the perfect cruise, an escorted tour, a river cruise, or a personalized itinerary with pre- and post-stay experiences, we'll help you find the option that best fits your travel style, interests, and budget.

Interested in learning more? Contact us to start planning your next adventure.

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Call 407-517-4744 or email Tina@VibrantTravelCo.com

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