The first time I went to Iceland, I thought I had landed on another planet. It is unlike anywhere else on earth and you need to see it for yourself.  But here’s the catch: Iceland has a reputation for being expensive.  Food, hotels, tours, and  gas prices are enough to make most travelers wince.

The good news? You can get everything that makes Iceland spectacular without breaking the bank. It will take some sacrifice and some restraint, but if you are wanting to get to Iceland and you need to save money. You can do it!

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1. Travel in the Shoulder Season

Flights and accommodations are at their cheapest in spring (April–May) and fall (September–October). You’ll avoid peak summer prices and still get long days, great weather, and fewer crowds.

If you really need to save some money and still see Iceland, book in November and March. While there will still be snow almost everywhere, it is still eerily beautiful. We took our three kids to Iceland for the first time in March because that was when it was affordable for us, and they still talk about how much fun they had. We saw geysers and waterfalls, horses and even went in a geothermal spa.

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2. Book Flights Smartly

Budget airlines like Play and Icelandair often run deals to Reykjavik from North America and Europe. Sign up for alerts or check flight search sites regularly. Sometimes, a stopover in Iceland is free or very cheap if you’re flying to Europe — two trips for the price of one.

Keep in mind that to get the lowest fare on Play and Icelandair, you will have to travel with only a backpack. The great news is that Iceland is a great place to pack light. Wear the layers you need and keep you backpack for a change of clothes and you can do Iceland super cheap.

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3. Stay in Guesthouses, Hostels, or Airbnbs

Iceland hotels are expensive and many of them are simple anyway so why not lean into budget-friendly stays? Guesthouses and farm stays are cozy, often with shared kitchens (a lifesaver for cutting food costs). Hostels are clean, safe, and great for meeting other travelers.

There are some family rooms in hostels so if you want to take your family be prepared to share a bathroom and kitchen, but you will have a nice big room with lots of beds to share.

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4. Cook Your Own Meals

This is the one thing that is easy to do, and saves a ton of money. Eating out in Iceland is pricey — a casual meal can easily cost $30–$40 per person.

Stock up on bread, cheese, skyr (Icelandic yogurt), and snacks for road trips. Cook dinners at your guesthouse or Airbnb or just eat grab and go options. Groceries aren’t cheap, but they will make your money go so much farther.

Your other option is to book a hotel with breakfast, and make the most of that every morning.

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5. Rent a Car with Friends

Iceland tours are very expensive and you can do it yourself if you rent a car. Renting a car splits the cost and gives you the freedom to explore at your own pace. Many of Iceland’s best sights — waterfalls, black sand beaches, and beautiful views— are free to visit once you get there.

One thing you should not skip, is insurance. Iceland has very bumpy roads and high winds much of the year. It isn’t uncommon for doors to be pulled off cars when the wind is high. It’s worth the peace of mind, and it keeps you from a much more expensive trip.

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6. Focus on Free (or Almost Free) Adventures

The beauty of Iceland is that most of its star attractions don’t cost a thing. Some of the most popular spots are:

• Golden Circle: Þingvellir National Park, Gullfoss waterfall, and Geysir.

• South Coast: Skógafoss and Seljalandsfoss waterfalls, Reynisfjara black sand beach.

• Snæfellsnes Peninsula: often called “Iceland in Miniature” with mountains, lava fields, and fishing villages.

All free, all spectacular!

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7. Skip the Blue Lagoon (or Don’t Pay Full Price)

 

The Blue Lagoon is iconic but pricey (tickets start around $60+). Alternatives like the Sky Lagoon in Reykjavik or Reykjadalur hot spring river (a hike-in natural spa) cost less and are just as fabulous. If the Blue Lagoon is a must, book early or check for deals in the morning or at night.

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8. Camp (in Summer)

If you’re visiting in summer, Iceland’s camping culture is unbeatable. Campsites are everywhere, inexpensive, and often come with kitchens or showers. Rent camping gear or even a camper van if you want your bed and wheels combined.

There are lots of options for camping vans on Airbnb and a few I have seen come with a fully stocked kitchen, so you don’t even have to add food prices to the mix.

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9. Take Advantage of Reykjavik’s Free Fun

Reykjavik is very expensive for food and drinks, but exploring the city itself is free and fun. Stroll along the waterfront, see the Sun Voyager sculpture, peek inside Hallgrímskirkja church, or just wander the colorful streets. Many museums have free admission days, too.

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10. Choose Experiences Wisely

It’s tempting to book every glacier hike, whale-watching trip, and snowmobile adventure — but those excursions add up quickly. Pick one or two bucket-list splurges, then fill the rest of your days with free natural wonders.

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Final Thoughts

Yes, Iceland can be expensive — but it doesn’t have to drain your savings. It might not be a budget trip, and you may have to forgo some things on your wishlist, or just pick one of two things, but it is worth it to see Iceland.

And honestly? Some of the most magical moments in Iceland — pulling over on a quiet road to watch wild horses, sitting by a steaming hot spring, or staring up at the midnight sun — don’t cost a thing.