Every time someone hears “Iceland,” the next sentence is usually “isn’t that insanely expensive?”
Yes and no. It’s not cheap. But it’s also not the six-figure horror story people imagine, if you plan it right.
We did a 15-day self-drive loop around Iceland in late September 2023 — four of us, one rental car, the entire Ring Road. I’ve already written about the day-by-day itinerary, but that post buried the cost details inside a wall of waterfalls and glaciers. This one exists purely to answer the money question, since that’s usually the first thing people actually search for.
Short answer: the whole trip cost us approximately ₹2.85 lakh per person. Here’s exactly where that went.
The Trip, in Brief
- When: Late September to early October 2023 — shoulder season
- Duration: ~15 days
- Group size: 4 friends, all from India
- Route: Anti-clockwise loop of the Ring Road, starting and ending at Keflavík
- Style: Self-drive, self-cooked meals, budget-conscious but not backpacking-tight
Shoulder season worked well for us — fewer crowds, still enough daylight for long drives, and a real shot at the Northern Lights without peak-season prices. If cost is your main constraint, this is the season to aim for.
Flights — ₹79K per person
There are no direct flights from India to Iceland, so we flew via Amsterdam. We booked 4–5 months in advance, which helped keep this number down. Flight prices swing a lot depending on the layover city and how early you book — this is usually the single biggest lever you have on total cost.
Visa — ₹10K per person
Iceland is part of the Schengen area, so this was a standard Schengen visa applied for through Iceland. Nothing dramatic here — the process was straightforward and took around 2–3 weeks for all four of us to get approved.
Car and Insurance — ₹26.5K per person
We rented a 4×4 SUV, though honestly, unless you’re planning to take F-roads, a 4×4 isn’t necessary. We’d booked a manual and got upgraded to automatic instead, which nobody complained about.
Get full insurance. Don’t skip this. Ours paid for itself many times over when our car broke down mid-trip — full coverage meant we didn’t pay a single krona out of pocket for the repair or the replacement car.
One thing that surprised us: no International Driving Permit needed. An Indian driving license in English was enough to rent and drive.
Fuel — ₹16K per person (₹64K for the group)
Fuel is expensive in Iceland, and unlike India, you’re filling the tank yourself. Payment happens directly at the pump with a credit card, and each transaction places a temporary hold that releases after a few days — so budget your credit limit accordingly and carry more than one card. Not every card works at every pump. For us, IDFC First Wealth was the most consistently reliable.
Accommodation — ₹61K per person
We booked everything through booking.com — a mix of hostels, guesthouses, apartments, and cabins. The one non-negotiable was a private or shared kitchen, which brings us to the next line item.
Food — ₹7.5K groceries + ₹29K eating out, per person
Cooking our own breakfast and dinner, with gas station food for lunch, kept this from spiralling. Eating out in Iceland isn’t cheap, and vegetarian options are limited, so carrying a few ready-to-cook Indian meals for the days you miss home food isn’t a bad idea.
The one splurge we didn’t regret: Icelandic hotdogs. Almost daily. Not exciting to admit, but true.
Experiences — ₹19K per person
Nature in Iceland is mostly free — no entry fee for waterfalls, canyons, or beaches, though parking sometimes costs a bit. We paid for exactly two things: an ice cave tour and a whale watching tour. The ice cave was worth every króna. The whale watching got cancelled due to weather, which is its own reminder to build slack into your itinerary if you’re booking paid experiences.
Shopping and Other Expenses — ₹27K + ₹8K per person
Souvenirs, gear, small buys along the way, plus miscellaneous costs that don’t fit neatly anywhere else. Easy to underestimate, easy to overspend on if you’re not tracking it.
So Where Did the Money Actually Go?
Here’s the full per-person breakdown, in one place:
| Category | Cost (INR) |
|---|---|
| Flights | 79,000 |
| Visa | 10,000 |
| Car + Insurance | 26,500 |
| Fuel | 16,000 |
| Groceries | 7,500 |
| Eating out | 29,000 |
| Stay | 61,000 |
| Experiences | 19,000 |
| Shopping | 27,000 |
| Other expenses | 8,000 |
| Total | ~2,85,000 |
For a group of four, that’s roughly ₹11.3 lakh total — flights and stay together made up nearly half the trip.
Is Iceland Actually Worth ₹2.85 Lakh?
Flights and stay are your two biggest costs, and neither is very compressible. But fuel, food, and experiences are where you have real control — cook your own meals, skip the paid tours you don’t care about, and let nature (which is mostly free here) do the heavy lifting.
If you’re tighter on budget, you could realistically shave 20–30K off this by cutting eating out and shopping. If you want more comfort — better stays, more paid experiences — expect to go north of ₹3.5 lakh.
Either way, this isn’t a trip where the money disappears into nowhere. Every rupee here bought something we still think about.
Closing Thoughts
If you want the actual day-by-day version of how this trip unfolded — car breakdowns, ice caves, and all — that’s over in the full 15-day itinerary. This post was just the numbers. That one’s got the rest of it.