The Land of Fire and Ice is known for its contrasting yet breathtaking terrain. It can sometimes really feel like you’ve landed in another realm, where it won’t be surprising to find elves, trolls, dragons, and all sorts of other magical creatures that only an epic movie could deliver. But can such a magical place be traveled on a budget? Well, we’ve got good news about traveling Iceland on a budget!
So, don’t let a budget make you miss out on your Iceland adventure. Although you may not be able to access some venues or partake in some activities, most of Iceland’s famous attractions are free! This article will tell you all the tips and tricks for exploring Iceland on a budget and even provide you with an itinerary you can use as is or as inspiration to build your own. However you want to look at it, you’ll be able to have the trip of a lifetime without having to break the bank after reading our guide.
The Campervan Advantage (And There Are Many)
There’s a very good reason we propose using a campervan for your Iceland adventure when you’re on a budget. But it’s not just financial benefits you can look forward to. Here’s why a campervan is what you must captain your Iceland exploration with:
It’s a buy-one-get-one-free type of situation. By renting a campervan, you’ll sort out both your travel and accommodation, with the latter usually being the most expensive cost of any holiday (irrespective of where in the world you’re having it).
With the right campervan, you’ll also be saving on another of our most expensive expenses here on the island; dining out. With their little kitchen onboard, you can buy affordable groceries at the local store and play Gordon Ramsay all you like.
No matter how you look at it, nothing will give you more freedom and flexibility on an Iceland trip than a campervan road trip. On a guided tour, you are tied down by a strict schedule and the wishes of an entire group of people.
With pre-booked accommodation, you’ve tied yourself down to being at a specific location at a specific time. So, a campervan is the easiest way to maintain a flexible schedule and be in complete control of your trip.
A campervan allows you to go camping in comfort at our super affordable campsites. And not only will campsites help you save a few bucks, but many also don’t know that they also grant you exclusive front-row access to many of our most famous attractions. Imagine opening your campervan door and looking out onto Skogafoss Waterfall!
Planning Your Budget-Friendly Campervan Adventure
Now that you’ve seen the perks of renting a campervan in Iceland, the following information will help you turn such a dream trip into reality:
Finding an Affordable Campervan
Finding an affordable campervan to rent in Iceland will depend on the following factors:
When you book your campervan. Oftentimes, the sooner you book, the better the price you’ll get. We also highly recommend booking your campervan well in advance if you’re planning a summer trip. Summer is our peak season here on the island, and you might not even find an available campervan left to rent if you leave it till the last minute.
The size of your campervan. It should come as no surprise that a beast of a camper will be more expensive than a compact little camper. This is not just because of rental costs but also because of gas consumption.
If it’s part of a deal. Just like most places in the world, you’ll always find deals or discounts everywhere. So, chat with the rental agent and see if there are any specials on their books.
The season. Unfortunately, like most destinations on this planet, Iceland also has a peak season. Peak season comes with its fair share of peak season prices – absolutely everywhere. So, don’t be surprised if you end up paying a bit more for your camper during the summer season compared to our “down” season.
Driving Around Iceland the Affordable Way
The following will help you save a few bucks when driving around Iceland:
Keep a consistent speed under 50 km/h. This has been proven to reduce your gas consumption by up to 25%! The less gas you use, the fewer times you’ll need to refuel, saving you money.
If you’re not planning a 4x4 adventure, try sticking to only the paved and well-maintained roads. This will also help you save on gas since the camper doesn’t need to work quite as hard traversing the terrain, also using less fuel.
Shop around. Gas doesn’t cost the same at all gas stations in Iceland. So, do your research and fuel up affordably.
Try to refuel in the larger cities and towns since gas tends to be more expensive in remote areas. This is because it costs more to get the gas there in the first place.
Chat with your rental agent about possible discounts. These can come in the form of vouchers from local partners or even a chip or token attached to the camper key that you can use at certain gas station pumps. You can also look for discounts from other third-party deals, such as with the Camping Card.
Navigating Iceland’s Camping Scene with a Few Budget-Saving Tips
Below, you’ll find some info on the camping scene in Iceland and how to get the most out of a budget-friendly camping trip:
Try to get the most bang for your buck, and don’t find yourself in uncomfortable positions. Not all our campsites have certain facilities and amenities, and even though a camper takes care of many of them, you’ll have to rely on the campsite for others.
For example, if you plan on getting some work done, you’ll need WiFi coverage. Or, if you’ve got a compact camper with basic features, you’ll need to rely on communal kitchen facilities or ablutions. So, always double-check before booking.
Take advantage of our Camping Card. This card only costs €179 and grants access to a family of 2 adults and up to 4 children at various campsites around the country for a stay of up to 28 nights!
We’re talking major savings here. Considering that campgrounds usually charge between $10 and $20 per person per night, you can already see how the Camping Card is a money-saving solution. The Camping Card also gives you discounts on refueling, further extending your savings.
Visit at the right time. As you might’ve already noticed, the seasons in Iceland matter. The reason is twofold; firstly, weather conditions will impact your itinerary. Not only will you find many campsites in Iceland closed throughout the colder months of the year, but traditional camping can actually become a Bear Grylls episode (hence why we’re thankful for the existence of campervans!).
Then, of course, camping during the peak season will bring with it limited availability, peak-season crowds, peak-season prices, etc. So, going camping during what we refer to as the shoulder months of summer, you’ll still be able to take advantage of pretty decent weather, but without any of the pesky peak season traffic, and explore the island at much more affordable rates.
Savvy Budget-Saving Food Strategies
The following tips will help keep both your stomach and your pockets full:
As we already mentioned, food can become one of your biggest trip expenses if you’re planning on living off takeaways and restaurant food. The best way to keep this spending in check is by buying groceries and cooking the food yourself. But are there any go-to budget-friendly grocery shops? Absolutely! If you’re looking for quality food at affordable prices, we suggest stopping by Kronan or Bonus (both are local favorites).
Avoid trying to stock up in the smaller villages or towns in the more remote regions of Iceland. Not only do you stand the chance of not finding what you’re looking for, but you’ll also be paying a pretty penny. Instead, stock up in the larger cities or towns, where things will be more readily available and often cheaper.
Check out our local options. We may have fairly inexpensive produce you may not be aware of back home. For example, a local breakfast favorite is Skyr (what most associate with thick yogurt, even though it isn’t). It’s a healthy and nutritious option that won’t cost you an arm and a leg.
Don’t buy water in Iceland. Iceland has some of the world’s purest water available straight from the tap. So, if you bring a reusable water bottle on your travels, you can just top up all along the way.
Something else that is also extremely expensive on the island is alcohol. Our alcohol is managed by the government and can only be bought at government-run shops called Vinbudin (so it’s not really like you can shop around for a better price). If you want to have a glass of wine or a beer with your meal, we suggest stocking up at the duty-free shop at the airport because buying alcohol in Iceland can quickly blow a budget.
Free and Low-Cost Attractions
As we already touched on, Iceland has plenty of free or inexpensive sights and experiences, so a budget won’t really get in the way of an incredible trip. The following are a few favorite attractions and activities that won’t cost you a thing:
Waterfalls
When TLC sang “Don’t go chasing waterfalls…”, they had never been to Iceland. We have over 10,000 waterfalls on the island, so it’ll be mission impossible to try and squeeze all of them into one Iceland road trip. However, there are a few that are not to be missed. This includes:
Svartifoss Waterfall – This waterfall is so spectacularly special with its hexagonal black basalt background that it inspired one of our most famous landmarks: Hallgrimskirkja.
Godafoss Waterfall – Where a symbolic gesture symbolized the official conversion of Iceland (or so they say). It’s believed that one of the Iceland leaders threw all his pagan idols into Godafoss (the “waterfall of the gods”) as a gesture of the island turning their backs on their pagan gods and officially embracing Christianity.
Dettifoss Waterfall – This waterfall is not only impressive to see but also holds an impressive title; it’s the second-most powerful waterfall in Europe, with thousands of liters rushing over its cliff edges every second!
Seljalandsfoss Waterfall – It’s also known as “the waterfall you can walk behind” since this 60-meter waterfall has a trail leading behind its plummeting veil of water where you can look out over the expansive Icelandic landscape.
Dynjandi Waterfall – Help us settle the debate of Iceland’s wedding-themed waterfall: does it resemble a bridal veil or wedding cake the most?
Black Sand Beaches
Something that’s almost synonymous with Iceland is our black sand beaches. Our black sand beaches leave a pretty dramatic impression, but they are also stark reminders of time.
You see, our black sand beaches are the remnants of all past volcanic activity here on the island. What we now stroll on as tiny black kernels of sand was once large solid masses of hardened lava broken down by time and the elements. Some of our most famous black sand beaches are:
Reynisfjara Black Sand Beach – This is the place to go if you want to take a long, leisurely stroll. The beach stretches out for about 3 kilometers, with dramatic black basalt cliffs lining the coastline. Just stick to the golden rules of Reynisfjara: don’t take a dip, and don’t turn your back on the ocean.
Even if the ocean may look calm, there are very strong undercurrents that’ll carry you out to see (if the hypothermia of the cold water and cold weather conditions don’t get to you first). Reynisfjara is also famous for its sneaker waves that sneak up on you, literally pulling your feet right from under you and dragging you into the ocean.
This may sound like something from a horror movie, but this has actually happened to quite a few visitors who didn’t adhere to the Reynisfjara rules.
Diamond Beach – This is an absolutely magical place. Just down from Breidamerkurjökull Glacier and Jökulsarlon Glacier Lagoon, the ice that doesn’t drift out to sea washes ashore at Diamond Beach. When the light plays off the pieces of ice scattered along the beach, it leaves the ice glistening and sparkling just like diamonds.
Natural Hot Springs
Something else that’s synonymous with Iceland is our hot springs. Just like the black sand beaches, this is also caused by all the volcanic activity here on the island. It’s the heat from the volcanic systems underneath the ground that heats up our underground water supply. And, while many natural hot springs that are too hot or inaccessible from the surface are used in our geothermal pool venues, there are still a few found in their original and natural settings.
The geothermal pools, which also have a myriad of other amenities and facilities (imagine a resort or waterpark), usually have entrance fees that cover and maintain all these additional facilities. Some, like the Blue Lagoon, can be very expensive if you’re traveling on a tight budget. However, many of the OG natural hot springs can be used at no cost whatsoever (and they also usually have a few other perks, such as additional privacy). A few natural hot springs you can consider visiting are:
Reykjadalur Geothermal River (yes, it’s really an entire river!)
Landmannalaugar Hot Springs
Landbrotalaug Hot Spring
Hiking Trails
With such extraordinary landscapes as can be found here in the Land of Fire and Ice, it’s no surprise that one of the favorite activities of locals and visitors alike is hiking. There really are no limits or restrictions when it comes to the hiking trails in Iceland.
It doesn’t matter whether you’re a pro or an amateur, whether you consider yourself super fit or a bit of a couch potato, or whether you just want a quick stroll or take on a multi-day trek – you’ll find a hiking trail suitable to you and your needs. The following are a few of our most famous trails to consider:
Short & Easy Hikes (Under 4 Hrs)
Mt. Esja Trail
The Glymur Waterfall Trail
Landmannalaugar Loop Trail
Thorsmork Loop Trail
Hverfjall Crater Rim Trail
Longer & More Challenging Hikes (Under 9 Hrs)
Skogafoss, Steinbogafoss and Skalabrekkufoss via Section of Fimmvörduhals Trail
Studlagil Canyon Trail
Thingvellir Loop Trail
Kristinartindar via Svartifoss – Skaftafellsheidi Trail
Litli Hrutu Volcano Viewpoint via Route A
Multi-day Treks
Laugavegur Trek
Fimmvörduhals Trail
The Askja Trail
Kjölur Trek
Shadow of Vatnajökull Trek
Northern Lights Hunting
The Northern Lights is probably one of our most famous natural phenomena. These neon-colored lights dancing across the sky are truly a mesmerizing experience. You don’t need to go on a guided tour to spot our famous Northern Lights here in Iceland; you can go hunting for them yourself.
Just keep in mind that the Aurora Borealis (as they’re also known) require specific conditions to show themselves. Optimum conditions include dry air, the cold, and, of course, darkness. These conditions usually peak during our winter season, making it the ideal time to go Northern Lights hunting.
Remember that it won’t help that there’s darkness, yet you’re trying to spot the Northern Lights in brightly lit-up mid-city Reykjavik. Your best chances are in the more remote regions of the island with as little light pollution as possible. If you’re still uncertain where to start your Northern Lights chase, just ask a few locals – they’ll be more than happy to help.
Seasonal Considerations: Find Which Season Will Work for You
Below is a quick-referencing cheat sheet to help you decide which season you should visit the island:
| Summer (June – August) | Winter (November – March) | Shoulder Months (April/May & Sept/Oct) |
All Roads Open | Yes | No (Annual Closures Apply) | No (Some Annual Closures Still Apply) |
All Campsites Open | Yes | No (Only a Select Few) | Only a Select Few |
The Midnight Sun | Yes (Only in June) | No | No |
The Northern Lights | No | Yes (As Long as Conditions are Ideal) | No (Only a Few Occasions Where Conditions are Ideal) |
Decent Weather | Yes | No | Yes |
Peak Season Prices | Yes | No (Only During Our Festive Season/New Year Period) | No |
Peak Season Crowds | Yes | No (Only During Our Festive Season/New Year Period) | No |
A 7-Day Budget-Friendly Campervan Road Trip Itinerary
Whether you use it as is or simply as some inspiration to create your own, the below 7-day trip itinerary showcases the best of Iceland on a budget:
Day 1: Reykjavik & the Golden Circle
Pick up your campervan after arrival at Keflavik Airport.
Stock up on groceries in the capital city of Reykjavik.
Visit Thingvellir National Park, Geysir Geothermal Area, and Gullfoss Waterfall.
Overnight at: Skjol Campground
Day 2: South Coast Wonders
Cruise along the coast and visit Seljalandsfoss Waterfall, Skogafoss Waterfall, and Reynisfjara Black Sand Beach.
Overnight at: Skaftafell Campground
Day 3: Vatnajökull National Park
Take on some of the hiking trails in Skaftafell (within walking distance from Skaftafell Campground).
Check out Jökulsarlon Glacier Lagoon and Diamond Beach “next door.”
Overnight at: Höfn Campground
Day 4: The East Fjords
Drive through and appreciate the incredible views of the East Fjords.
Visit the picturesque little town of Seydisfjördur.
Overnight at: Seydisfjördur Campground
Day 5: North Iceland
Explore Lake Myvatn and check out Dettifoss Waterfall.
Overnight at: Akureyri Campground
Day 6: Snæfellsnes Peninsula
Marvel at the beauty of Snæfellsnes Peninsula, check out Kirkjufell Mountain and visit Djupalonssandur Beach.
Overnight at: Olafsvik Campground
Day 7: Heading Back
The last day is spent exploring the Reykjanes Peninsula. If you’d like to spoil yourself on the last day, you can add a visit to the Blue Lagoon to your itinerary, but it’s completely optional.
If this will be your last day on the island, you can drive to Keflavik Airport and drop off the campervan before catching your flight home.
Frequently Asked Questions About Exploring Iceland in a Campervan While on a Budget
Below, you will find the answers to some of the most frequently asked questions about exploring Iceland in a campervan while on a budget:
Is a campervan really cheaper than traditional travel options in Iceland?
Yes, a campervan really is cheaper than traditional travel options when you consider you’ve taken care of both your transport and accommodation in one fell swoop. Traditionally, you’re looking at roughly $160 per day for transport and accommodation, compared to about $120 per day for your camper and campsite (and this excludes any other discounts we’ve mentioned!).
What are some free activities to enjoy while campervanning in Iceland?
Some free activities you can enjoy while campervanning in Iceland include visiting our waterfalls, chasing the Northern Lights, taking a leisurely stroll on one of our black sand beaches, and going on a hike.
Can I save money by visiting iceland in the off-season?
Yes, you can definitely save money by visiting Iceland in the off-season since peak seasons bring with them peak season prices. Our peak seasons tend to be during summer (June to August) and the period over the festive season and New Year.
Are campervans allowed on all roads in Iceland?
Yes, campervans are allowed on all roads in Iceland as long as they’re 4x4 campervans. If it’s a 2WD, it will be illegal to drive on the F-roads in Iceland, and we won’t recommend it on any of our other rougher and remote unpaved roads either.
How much are the campsites in Iceland?
Campsites in Iceland generally charge between $10 and $20 per person per night. Although this is already extremely cheap compared to other accommodation options, you can save even more money by purchasing and using the Camping Card.
How much should I budget for food when traveling by campervan in Iceland?
If you don’t have any budget restrictions and you’ll be eating at restaurants, you’re looking at easily spending between $40 and $45 per person per meal. However, if you’re planning on doing things a bit more affordably and buying groceries to cook your own meals, you should budget for around $10 to $15 per person per day.
Time to Embrace Your Icelandic Adventure on a Budget!
As you wrap up reading our guide, a budget should no longer be an excuse for not coming to explore the Land of Fire and Ice. Plan out your trip (or use our handy available trip itinerary), rent a campervan in Iceland, and head out on the adventure of a lifetime cruising along breathtaking fjords.
Have relaxing soaks in our natural hot springs, stand in awe of our powerful waterfalls, stroll on our magical black sand beaches, and experience a Midnight Sun or spot the Northern Lights (depending on when you choose to visit). It’s hard to believe that you can see and do all this and much more here in Iceland without breaking the bank, but this is indeed the case. Happy travels! Trust us, you’re in for a real treat!