Iceland uses the Icelandic króna, written as ISK or kr. The valid banknotes are 500, 1,000, 2,000, 5,000 and 10,000 kr., and the valid coins are 1, 5, 10, 50 and 100 kr.

Iceland is a very card-friendly country, and most visitors use debit or credit cards for almost everything, from coffee and groceries to fuel and tours. Foreign currencies are rarely accepted, so it is best to pay in ISK. A 4-digit PIN is still useful, especially for cards used in shops, self-service machines, and fuel stations.

You can exchange major currencies at the airport and at the main banks, including Landsbankinn, Íslandsbanki, and Arion Bank. Bank branches are usually open on weekdays from around 9:00 to 16:00, while ATMs are easy to find in Reykjavík and other larger towns.

Typical costs in Iceland

Iceland is known for being expensive, but the easiest way to plan is to think in categories rather than old fixed examples. Prices change over time, so these figures work best as current Reykjavík-style guide prices rather than guarantees.

  • City bus ticket (adult): 690 ISK
  • 24-hour city bus pass: 2,750 ISK
  • 72-hour city bus pass: 6,000 ISK
  • Single adult admission to a Reykjavík swimming pool: 1,430 ISK
  • Cappuccino: around 743 ISK
  • Main meal at an inexpensive restaurant: around 3,300 ISK
  • Half-litre domestic beer at a bar: around 1,500 ISK
  • Milk (1 litre): around 236 ISK
  • Bread (1 loaf): around 511 ISK
  • Eggs (12): around 789 ISK

Fuel prices change frequently in Iceland, so it is best to check them close to your travel date, especially if you are planning a longer road trip around the country.

Grocery shopping

For day-to-day shopping, visitors usually rely on supermarkets such as Bónus, Krónan, Hagkaup, Prís and 10-11. Budget travelers usually save the most by shopping at the cheaper chains and using cafés and restaurants more selectively.

Money tips for travelers

  • Use a card whenever possible: Iceland is one of the easiest countries in Europe for cashless payments.
  • Keep a little cash only if you want it: many visitors barely use cash at all.
  • Expect Reykjavík to be expensive: restaurants, alcohol, and convenience shopping are where costs rise fastest.
  • Save with supermarkets and pools: grocery shopping and local swimming pools are often the best-value everyday choices.