The Ultimate 5-Day Iceland Road Trip on a Budget (Yes, It’s Possible!)

If Iceland’s been sitting at the top of your bucket list, same. Between the hot springs, jaw-dropping waterfalls, and that moody blue-grey sky, it’s one of those places that feels straight out of a fantasy film. For years it felt out of reach, until one day we spotted a deal we couldn’t refuse and finally said… let’s go to Iceland!

And spoiler, it was worth every penny.

What Does a 5-Day Trip to Iceland Really Cost?

Let’s break it down, because Iceland has a bit of a reputation for being pricey, but it doesn’t have to be. Here’s what we spent (and how you can save too):

ItemCost (GBP)Notes
Flights (Amsterdam → Reykjavik, return)£300 totalScored via a flight deal site (try Expedia or Google Flights)
Hotel (1 night w/ breakfast)£90Look for “breakfast included” to save on meals
4-day SUV Camper Rental£470Booked through Go Campers Iceland, includes insurance
Groceries + Snacks£45Stock up on bread, PB&J, muesli bars, fruit
Dinners Out£80Fish, pizza, pasta, burgers, skip the starters and wine

Total: roughly £950 for 5 unforgettable days in Iceland.
Not bad for a country people say is “too expensive” to visit, right?

Budget Travel Tips for Iceland

Iceland can absolutely be done on a budget if you plan ahead. Here’s how we kept costs low (and still had a dreamy time):

  • Book in off-season. Late September = fewer tourists, lower rates, and still great weather.
  • Shop local supermarkets. Grab breakfast and lunch supplies there, we lived on peanut butter sandwiches and muesli bars, and honestly? 10/10 no regrets.
  • Limit alcohol and extras. Icelandic restaurants are gorgeous but pricey. Stick to mains and skip dessert to save ££.
  • Opt for a camper van. You’ll save on accommodation and get unbeatable views each night.

Pro tip: Pack collapsible water bottles. Tap water in Iceland is glacier-fresh and totally safe to drink.

Exploring Reykjavik: Small City, Big Charm

Reykjavik isn’t your typical capital, it’s more like a colourful seaside village with cool design shops, quirky cafés, and the friendliest locals you’ll ever meet.

Spend a day here before hitting the road. Highlights include:

  • Hallgrímskirkja Church: Iconic, photogenic, and you can climb the tower for epic views.
  • Harpa Concert Hall: A modern glass masterpiece on the harbour.
  • Sun Voyager Sculpture: The famous Viking ship that glows at sunset.
  • Reykjavik Roasters: For the best coffee in town (and a cosy warm-up).

You won’t need Icelandic currency, everyone takes cards. And yes, everyone speaks English (often with the cutest accent imaginable).

Our Iceland Road Trip Route

We grabbed our rugged 4×4 camper (a Mitsubishi Pajero, basically a tiny adventure house on wheels) and hit the Golden Circle, then followed Route 1 down Iceland’s south coast.

Total driving time: 3 days
Total awe-struck moments: Too many to count

Green = Route 1, the main road around the island. Red = our route

Must-See Stops in South & West Iceland

We won’t spoil every surprise (half the fun is the discovery), but if you’re mapping your itinerary, don’t miss these:

  1. Gullfoss Waterfall – One of Europe’s most powerful falls.
  2. Geysir Geothermal Area – Bubbling mud and steaming geysers that actually erupt.
  3. Thingvellir National Park – Where you can literally walk between two tectonic plates.
  4. Vík Church Viewpoint – The iconic red-roofed church overlooking the black sands.
  5. Reynisfjara Beach (Black Sand Beach) – Unreal rock formations and moody waves.
  6. Diamond Beach – Sparkling ice chunks scattered like gems across black sand.
  7. Skógafoss + Seljalandsfoss – Two waterfalls, both wildly photogenic.
  8. Reykjadalur Hot River – A two-hour hike through mountains ending in a natural hot spring.
  9. DC3 Plane Wreck – Eerie, cinematic, and totally Insta-worthy.
  10. Þakgil Canyon (Pakgil) – Hidden gem for camping between green cliffs.

Many of these spots are best reached with a reliable rental car, we recommend checking prices on LocalRent or EconomyBookings before you go.

What to Pack for Iceland

Packing for Iceland is a bit of an art form. The weather can change in minutes, sunny and clear one moment, sideways rain and mist the next. You’ll need a mix of layers, waterproofs, and a few clever essentials to stay warm, dry, and comfortable on the road.

If you’re planning your trip and want a full breakdown of exactly what to bring (right down to socks, power banks, and what not to forget), check out our Ultimate Iceland Packing List. It’s got everything we actually used and loved, plus a few things we wish we’d packed sooner.

Pro tip: Don’t underestimate the weather. Dress for comfort, not fashion, and layer up even in summer. You can always strip down when the sun peeks out.

For the full checklist, check out our full Iceland Packing List before you go.

Final Thoughts: Why Iceland Belongs on Your Bucket List

Iceland isn’t a one-highlight kind of destination. It’s 360 degrees of beauty, all day, every day. Every turn of the road gives you another “is this real life?” moment.

So yes, go. Do the trip. Sleep in a camper. Eat too many gas-station hotdogs. Let your jaw drop daily.

Because when you finally see Iceland for yourself, words just won’t do it justice.


Plan Your Trip

Before you go, don’t forget to:

  • Search flexible flights and hotels on Expedia
  • Grab travel insurance you actually understand at SafetyWing
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