Iceland doesn’t have to be expensive. In this Budget Iceland Itinerary, tour the Golden Circle and visit Ring Road sights in a camper van — all for just $2.8K!
Iceland might be the world’s best bucket-list destination, an otherworldly place where you can climb massive glaciers, catch the Northern Lights, and walk amongst icebergs on a lava beach. True enough, we were surrounded by gorgeous views everywhere we turned — it’s not often that your jaw drops right after leaving the airport!
Just another sunset in Iceland
Of course, such exotic sights don’t come for cheap. As one of the notoriously-expensive Scandinavian countries, Iceland’s prices are astounding. For example, sliced bread from the convenience store costs around ~S$8!
But you don’t have to break the bank to see Iceland’s best! We’ve done it for fellow wallet-burners Switzerland and Norway, and now, here’s our budget-friendly take on the Land of Ice and Fire.
We’ve even included an epic camper van experience, so you can sleep under the stars (or even the Northern Lights). Travelling Iceland is epic in itself, but doing it in a camper van turns a road trip into an adventure — so if you’re ready, read on!
Pre-trip Essentials
Where To Stay In Iceland: In Reykjavík, we stayed at 101 Guesthouse (~S$81/night for two pax) in the heart of the city. There are clean, shared bathrooms and a spacious kitchen space, as well as an in-room sink and daily towel change — better than most hostels!
While on the Ring Road, we stayed in our camper van (from €220/day, ~S$335.50/day), visiting campsites across Iceland!
101 Guesthouse
Connectivity: Our camper van had unlimited WiFi for up to five devices, which is free in the winter months of Oct – Apr. If you need to make calls, get a 4G SIM Card (~S$63 for 14 days) for 120 minutes of talk time and 10GB of data.
Getting Around Iceland: The best way between Keflavík International Airport and Reykjavík Terminal is via economy transfer (~S$23). We recommend the SmartBus option (additional ~S$11) with pick-up and drop-off at popular bus stops and hotels in the city, round the clock.
Iceland Budget Breakdown Per Pax
Accommodation: S$279.87 Food: S$167.47 Activities: S$709.87 Transport: S$1,643.41 TOTAL: S$2,800.62 Click here for detailed breakdown
*Note: Budget is based on two pax sharing big-ticket items like camper van rental.
Check Flights to Iceland
We didn’t include flight prices in the budget breakdown since they vary throughout the year. Check prices on your date of travel here:
Home to two-thirds of Iceland’s tiny population, Reykjavík is a bustling hub for art and culture, with colourful streets packed with character and charm.
Bæjarins Beztu Pylsur
Bæjarins Beztu Pylsur is world-famous for its namesake ‘Best Hot Dogs’ — juicy sausage doused with a unique mix of ketchup, remoulade, and sweet mustard.
Cost: ISK470 (~S$5.25) Opening Hours: 10AM – 1AM (Sun – Thu). Closes 4:30AM on Fri – Sat. How to get there: 16-min walk from 101 Guesthouse
Reykjavík City Sights
Hallgrímskirkja
Spend the afternoon admiring iconic sights around Reykjavík, beginning with Hallgrímskirkja church. Its architecture is inspired by Iceland’s lava formations, and inside you’ll find a grand organ with over 5,000 pipes.
Hallgrimskirkja
Entrance Fee: Free. Optional tower tickets at ISK1,000 (~S$11.56) Opening Hours: 9AM – 5PM (Oct – Apr); 9AM – 9PM (May – Sep). For tower, check here. How to get there: 10-min walk from 101 Guesthouse
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Next, head to Hofdi House, setting of the groundbreaking 1986 summit meeting that ended the Cold War. You can’t enter, but feel free to take photos outside and admire the statue of Einar Benediktsson, a prominent Icelandic poet and entrepreneur who lived there in 1914.
Hofdi House
Entrance Fee: Free Opening Hours: 24 hours. Best visited between 10AM and 6PM How to get there: 18-min walk from Hallgrímskirkja
End the evening at Harpa concert hall, with over 10,000 glass structures that catch light like a kaleidoscope, reflecting vibrant colour on the waters below.
Harpa Concert Hall. Photo Credit: Meet In Reykjavík
Entrance Fee: Free Opening Hours:8AM – 12AM. Best visited at sunset. How to get there: 24-min walk from Hofdi House; 19-min walk from 101 Guesthouse
If you’re interested in learning more about each location, take the Reykjavík Grand Excursion (~S$262), a bus tour with a local guide. The three-hour tour is great if you’re short on time and want a quick introduction of Reykjavík’s highlights, including exhibition hall Perlan and other scenic spots along the coast.
Reykjavik Grand Excursion Tour Cost: ~S$262 Tour Timings:12PM – 3PM or 1PM – 4PM Meeting Point: Pick-up and drop-off at downtown bus stops and hotels (30 min before tour start-time)
Day 2: Day Trip to the Golden Circle & Secret Lagoon
The Golden Circle’s Secret Lagoon
The Golden Circle is Iceland’s most famous and accessible sightseeing route. While easy to drive yourself, a day tour is cheaper because the Golden Circle is just a short drive from the city. Our full-day Golden Circle tour included admission and parking fees (~S$52.90), saving us time and ~S$50 each compared to renting a car.
First stop: Kerid Crater, believed to have been a volcano which collapsed upon eruption. At 3,000 years old, Kerid is half the age of Iceland’s volcanic calderas, which is why its red slopes haven’t turned black.
Entrance Fee: ISK400 (~S$4.62); included in tour Opening Hours: 24 hours How to get there: 50-min drive from Reykjavík
Secret Lagoon
Secret Lagoon
Next, soak in one of Iceland’s famous hot springs. Built in 1891, it’s among the oldest swimming pools in the country, and has retained its rustic nature. Enjoy a good scrub before soaking for two hours — nothing feels better on a chilly day!
Entrance Fee: ISK3,000 (~S$34.62), towel rental at ISK700 (~S$8.08); both included in tour Opening Hours:Varies by season How to get there: 32-min drive from Kerid Crater
Geysir Hot Spring Area
Geysir
After a good soak, witness one of nature’s greatest feats at Geysir Hot Spring Area.Every few minutes, the aggressive geyser bubbles over, launching 100ft of water into the sky!
Entrance Fee: Free Opening Hours: 24 hours How to get there: 22-min drive from Secret Lagoon
Gullfoss
Gullfoss
A short ride away is the mighty Gullfoss, which unlike other waterfalls, you actually view from above.
Entrance Fee: Free Opening Hours: 24 hours How to get there: 10-min drive from Geysir Hot Spring Area
*Pro-tip: If you need the bathroom, use the one inside the Gullfoss Visitor Center that’s clean and free. Those in the parking lot cost money and are often crowded!
Thingvellir National Park
Thingvellir National Park
Lastly, head to the Thingvellir National Park (meaning ‘the fields of parliament’), where Icelanders declared independence from Denmark and their first president.
This UNESCO World Heritage Site is also home to the Mid-Atlantic Rift, where you can walk between North American and Eurasian tectonic plates, and Lake Thingvallavatn, the largest natural lake in Iceland.
Parking Fee: ISK500 (~S$5.58); included in tour Opening Hours: 24 hours How to get there: 1-hour drive from Gullfoss
Day 3: Day Trip to the South Coast & Glacier Hike
Glacier hike
Iceland’s South Coast is another famous route, with stunning waterfalls, volcanoes, and glaciers. We had to tick a glacier walk off our bucket list, so we took an all-inclusive South Coast tour which included a three-hour hike!
Start at Seljalandsfoss,a waterfall you can actually walk around and behind. Prepare to get splashed!
Parking Fee: ISK700 (~S$8.08); included in tour How to get there: 2hr drive from Reykjavík
*Pro-tip: Ascend and descend Seljalandsfossvia the right staircase, as the left tends to get extremely slippery.
Eyjafjallajökull Volcano
Eyjafjallajökull Visitor Centre
Next, head to Eyjafjallajökull Volcano, notorious for the 2010 eruption which disrupted flights across Europe. The visitor centre is permanently closed, but sports a photo of the eruption.
Head further south to Skógafoss Waterfall, where you can walk to the pool below its gushing 60m cliff. Look out for the flocks of white sea birds which dance around the mist, like a classic painting come to life.
Entrance Fee: Free How to get there: 31-min drive from Eyjafjallajökull visitor centre
Reynisfjara Black Sand Beach
Reynisfjara
Next, visit the iconic Reynisfjara Black Sand Beach, an actual lava beach overlooking the North Atlantic sea. Its dark basalt columns and caves are breathtaking, but watch out for the waves — while beautiful, they can sneak up and suck you into the sea!
Parking Fee: Free Address:10-min drive from Skógafoss
Sólheimajökull
The best for last: a hike on Sólheimajökull, 250m of solid, sparkling ice! We began our adventure by entering a repurposed school bus — a storeroom for hiking gear.
After gearing up, we hiked through landscapes of mini lakes, icebergs, and molten ash, before stepping onto blinding white ice as far as the eye can see. Even cooler, we peered into a deep moulin, a glacier mill shaped by years of strong wind. We even sampled the freshest water — straight from the glacier itself!
Sólheimajökull
Cost: ~ISK9,500 (~S$106.18) without tour Activity Timings:Varies How to get there: 30-min drive from Reynisfjara to Sólheimajökull Glacier Parking Lot
*Pro-tip: Wear a beanie beneath your helmet during the glacier walk, as the helmets can get sweaty and smelly.
Icelandic Street Food
Prepare for tomorrow’s road trip with a feast at Iceland Street Food. It’s practically a buffet, with free soup refills, drinks, and dessert — all from just ISK1,490 (~S$17.22)! Our favourites were the creamy shellfish, hearty lamb, and mini brownies.
Time to hit the (Ring) road, starting with the scenic South!
Get Cosy In Your Camper Van
Rent a car? Boring! To experience actually living on the road, we got a camper van in Iceland for seven days. We chose the Happy 4×4 (from €220/day), an automatic four-wheel-drive which sleeps two in winter. Besides complimentary insurance, we added protection for gravel damage (€15/day), which is very common on Iceland’s roads.
Cost: €1,645.18 (~S$2,508.61) for two people Opening Hours: 8AM – 5PM How to get there: From downtown Reykjavík, take a 45-min ride on public bus 55 to Tjarnarhverfi bus stop, just outside the Happy Campers office. Purchase bus tickets on the Strætó app, which has a live map with bus stop locations and departure times at each stop! Alternatively, tickets on the bus cost ISK470, but you will need exact change.
Bridge Between Continents
Bridge Between Continents
While the Mid-Atlantic Ridge covers over 16,000km of the world, 90% of it is underwater, making Iceland one of the rare places you can touch the ridge on dry land! At the Bridge Between Continents, stand in the middle of a huge fissure between two tectonic plates. You’ll technically be walking between Europe and USA! How to get there: 20-min drive from Happy Campers
Skálakot Horse Riding
The stunning Icelandic horses
Icelandic folktales are full of mystical creatures, and it’s no wonder when their own horses are the stuff of legends. Pure-bred since the Viking age, Icelandic horses are isolated from other breeds — in fact, any horse that leaves its shores are not allowed to return! They’re most celebrated for their unique gait (so smooth that you can carry a pint while riding) which you can try at Skálakot.
Cost: From ISK7,000 (~S$77.49) Opening Hours: First ride at 10AM, last ride at 4PM How to get there: 2.5hr drive to Skálakot Hotel from Bridge Between Continents
Day 5: Vík to Hof
Reyniskirkja
The seafront village of Vík is home to iconic spots including an abandoned plane wreck, and a scenic church on a hill.
Solheimasandur Plane Wreck
Solheimasandur Plane Wrec
Amidst Iceland’s stunning nature, you’ll find something equally dramatic and man-made: a US Navy plane wreck, which crashed in 1973 with zero fatalities.
It’s a 45-minute walk from the main road, and the route is well-marked and quite otherworldly! Otherwise, there’s a shuttle bus that takes 10 minutes (ISK1,500, ~S$16.56 one-way; ISK2,500 for round-trip), which runs from 10AM to 6PM every 45 minutes.
How to get there: 24-min drive from Skálakot Hotel or a 9-min drive from nearest campsite at Skógar. The entrance of the path (at the parking lot on the Ring Road) can be hard to spot, so follow these coordinates: 63°29’26.2″N 19°21’51.3″W.
Path to plane wreck
*Pro-tip: Arrive way before the first shuttle bus at 10AM to avoid the crowd. We started walking at 8AM and were the very first to reach the plane!
Reyniskirkja
Lunch on Reyniskirkja
Enjoy lunch at the picturesque Reyniskirkja, with a bird’s-eye view of Vík. How to get there: 19-min drive from Solheimasandur Plane Wreck
Fjaðrárgljúfur Canyon
Fjaðrárgljúfur Canyon. Photo credit: Fun Iceland
At over 10,000-years-old and 100m-deep, Fjaðrárgljúfur‘s valleys make the perfect dramatic setting… like for Justin Bieber’s emotional I’ll Show You. The epic canyon is currently closed due to damaged vegetation, but it’s a must-visit when open. Just keep to the marked trails!
Entrance Fee: Free Opening Hours: 24 hours How to get there: 1hr drive from Reyniskirkja
Day 6: Hof to Stokksnes
Continue onto Southeast Iceland’s most mind-blowing sights.
Diamond Beach
Diamond Beach
Start the day with one of the craziest things you’ll ever see: icebergs shimmering like diamonds on a pitch-black beach. How to get there: 1hr 45-min drive from Fjaðrárgljúfur Canyon, or a 45-min drive from nearest campsite Skaftafell.
We started our three-hour Crystal Ice Cave Tour (~S$242.75), by hopping into a Super Jeep — the biggest in Iceland! To our first cave, it’s a 40-minute ride over the vast Vatnajökull, the largest land mass glacier in Europe (10 times the size of New York!).
We walked through cave formations including a moulin (‘glacier mill’)whose shapes change and may even collapse in the coming years, as well as a vivid blue ice wall.
Catching snowflakes through a moulin
Blue ice wall
Crystal Ice Cave Tour Cost: ~S$242.75 Activity Timings: 10:30AM – 1:30PM or 11AM – 2PM. Tours only in winter. Meeting Point: Jökulsárlón Iceberg Lagoon, a 5-min drive from Diamond Beach
*Pro-tip: Iceland’s weather feels especially volatile on an exposed glacier, so be prepared with extra layers and sturdy walking shoes.
Stokksnes
Stokksnes
Of all the beauty in Iceland, Stokksnes (also known as Vestrahorn) is on another level. The ridged mountain catches light perfectly, and is especially gorgeous at sunset, and if you’re lucky, during the northern lights!
Cost: ISK900 (~S$10.05) per person for Viking Village and Stokksnes; ISK2,000 (~S$22.33) per person including camping. Purchase tickets at Viking Cafe. How to get there: 1hr 15-min drive from Jökulsárlón Iceberg Lagoon
Day 7: Stokksnes to Reykjahlíd
Driving along the Eastfjords was our favourite route along the Ring Road, with striking coastal landscapes, ash fields, and snow.
Abandoned Viking Village
Viking Village
Created for a film that was never made, this abandoned village is an impressively authentic snapshot of Iceland’s Viking era.
Opening Hours: 24 hours Cost: ISK900 (~S$10.05) per person for Viking Village and Stokksnes; ISK2,000 (~S$22.33) per person including camping. Purchase tickets at Viking Cafe. How to get there: 5-min drive from Stokksnes; nearest campsite at Viking Cafe parking lot.
Dettifoss
Dettifoss. Photo credit: Andres Valencia
Continue North to the incredible Dettifoss, Europe’s largest and most powerful waterfall. The road leading here can be treacherous in winter and closes often due to bad weather, so check conditions before going! How to get there: 5hr drive from Viking Village
Perpetual Shower
Perpetual Shower
Freshen up (or just snap a fun photo) at this random shower, spurting water direct from the hot springs. How to get there: 1hr drive from Dettifoss
Hverir
Hverir
Here’s the closest you’ll get to Mars: Hverir, a geothermal field which violently spews smoke from the ground. Come at sunset for a surreal backdrop of cotton-candy skies amidst bubbling mud pools. How to get there: 7-min drive from Perpetual Shower
Day 8: Reykjahlíd to Akureyri
Welcome to the North — full of snowy landscapes and furry cuties! This route also passes the Gjaldskylda toll road (ISK1,500; ~S$16.75 per car) — you can’t miss the sign before entering.
Grjótagjá Cave
Grjótagjá Cave
The King of the North himself enjoyed Grjótagjá, as you’ll recall from a sexy Game Of Thrones scene. While bathing is strictly forbidden (the water is way too hot), it’s a nice stopover before heading further up the Ring Road! How to get there: 7-min drive from Hverir; 7-min drive from scenic campsite at Vogar Travel Service
*Pro-tip: To make the short but treacherous climb in and out of Grjótagjá, sit and slowly scoot down, gripping the cliff edges.
Godafoss Waterfall
Godafoss Waterfall
Every waterfall in Iceland is uniquely beautiful, and the horseshoe-shaped Godafoss is no exception, with gorgeous turquoise waters rimmed by thick mist. How to get there: 47-min drive from Grjótagjá
Akureyri City Sights
Akureyri. Photo credit: OUPblog
After Reykjavík, most Icelanders stay in the ‘Capital of the North’, Akureyri. Drive around the iconic Akureyri Church and the Laufas Turf Houses, preserved from the 1800s. Otherwise, dip in the Akureyri Swimming Pool (ISK1,000; ~S$11.16), which is like a water park with its slides, splash pools, and water jets!
Cost: ISK1,000 for swimming pool (optional) Opening Hours: 24-hour viewing for Akureyri Church and Laufas Turf Houses; check seasonal timings for Akureyri Swimming Pool here. How to get there: 31-min drive from Godafoss to Akureyri
Day 9: Akureyri to Snaefellsness Peninsula
Illugastadir
Journey to the West with stunning sunsets, seals, and of course, more snow.
Hofsós Swimming Pool
Hofsós Swimming Pool
Raise your pool game to infinity as you gaze out at endless ocean, mountains, and sky! The relatively-new Hofsós Swimming Pool is agreed to be Iceland’s most stunning, and is a must-visit after days in the cold.
Entrance Fee: ISK1,000 (~S$11.17) Opening Hours: Check seasonal timings here. How to get there: 1hr 40-min drive from Akureyri; 1hr 45-min drive from Hamrar Campsite
*Pro-tip: Bring a towel for showering, as rental costs ISK650 (~S$7.26).
Hvítserkur
The impressive Hvítserkur is said to resemble a dinosaur, obviously by people with better imaginations than me. Be careful on the slippery 30-min trek down, and take a scenic rest on the gorgeous formation itself! How to get there: 2hr drive from Hofsós Swimming Pool
Illugastadir Seal Watching
Illugastadir
Watch the golden light spill onto the common harbour seals and larger grey seals, who hang out at Illugastadir all year!
Entrance Fee: Free Opening Hours: 24 hours. Best visited at sunset How to get there: 30-min drive from Hvítserkur. Look for the painted seal sign and follow the 15-min path to the coast.
Day 10: Snaefellsness Peninsula to Keflavik
Northern Lights at Kirkjufell
Round off the road trip with Snaefellsness Peninsula and Iceland’s most iconic mountain.
Londrangar View Point
Londrangar
Londrangar’s unique basalt dikes are the remains of ancient crater, and look stunning with the crash of turquoise waves and flocks of sea birds. How to get there: 3.5hr drive from Illugastadir; 2hr drive from Budardalur/Dalakot Campsite
Snaefellsjokull National Park
Hellnar Viewpoint
Drive along Snaefellsjokull National Park for views of Kirkjufell and Hellnar Viewpoint, another lovely coastal site. How to get there: 7-min drive from Londrangar
*Pro-tip: Wear crampons if you can, as the icy path is very slippery.
Saving Money In Iceland
Renting a camper van in Iceland saves money by functioning as both transport and lodging. Iceland’s amazing nature, lack of pests and wild predators, and huge camping culture (over 170 campsites) are also a huge plus. Check out our detailed camping and budget-saving tips here!
As for activities, must-dos like glacier hiking and ice cave exploring are highly dangerous, if not impossible without a guide. We booked licensed tours through Klook to secure spots in advance, skip queues, and enjoy savings from all-inclusive day packages.
We also enjoyed hearing first-hand insights on Icelandic life, like the strange connection between Icelandic horses and birth control pills, and what the Blue Lagoon looked like before the tourist boom. Our Golden Circle Tour guide (a professional opera singer) even treated us to a spontaneous performance!
Hey really detailed explanation 🙂 Can I ask if you all only started to rent a car from which day onwards? Was it from day 4 onwards? Thank you very much 🙂
Great post! Which month was this trip done in? Was there any vehicle mishaps we should take note of?
Hey Sarah, it was done in March! Nothing serious but do look out for the winds as it can cause damage to the doors when you’re not careful.
Nice trip! Is it advisable to do similar trip in mid March? Is it safe to self drive in mid March?
Hi Geok!
Our trip was actually done in mid March so yes, it’s completely doable! As always, be careful on the road. 🙂
Hey really detailed explanation 🙂 Can I ask if you all only started to rent a car from which day onwards? Was it from day 4 onwards? Thank you very much 🙂
Thanks De Ying! You’re right, the car was rented only from Day 4 since the first 3 days were day trips 🙂
Hello. Just want to ask about the insurance for the campervan. Is the cdw and gravel insurance enough to secure the campervan? Thanks
Hey Sarah, it’s best to check with the campervan rental company! These may vary from company to company.