by Guy Bennet
Iceland has a reputation for being painfully expensive, and that alone puts a lot of people off visiting. But here’s the truth: doing Iceland on a budget is more achievable than you might think… if you travel smart.
In this post we share exactly how we spent 3 days in Iceland in a campervan: the Golden Circle, the South Coast’s glacier lagoons, waterfalls you can walk behind and black sand beaches, plus the tips that kept our costs down.
The Biggest Cost Saver for Iceland on a Budget: A Campervan
Accommodation is where most of an Iceland budget disappears. Instead of hotels or Airbnbs, we rented a campervan for our 3-day road trip. For just £250, we had a bed, a small portable kitchen and a heater to keep us warm through the chilly nights, all on four wheels.
Not only did this cut costs massively, it also gave us complete freedom. In a country where the weather changes by the hour, that flexibility is priceless!
Our 3-Day Iceland on a Budget Itinerary at a Glance
- Day 1 – The Golden Circle: Þingvellir, Brúarfoss, Efstidalur II, Strokkur, Gullfoss, Kerið, Secret Lagoon
- Day 2 – The South Coast glaciers: Fjaðrárgljúfur, Svínafellsjökull, Jökulsárlón, Diamond Beach, Fjallsárlón
- Day 3 – Waterfalls, beaches & relaxation: horse riding, Reynisfjara, Skógafoss, Seljalandsfoss, Blue Lagoon
Day 1: Iceland’s Golden Circle on a Budget
We kicked off our adventure with Iceland’s famous Golden Circle, a perfect introduction to the country’s landscapes and an easy first day of driving from Reykjavík and Keflavík.
Þingvellir National Park
Our first stop was Þingvellir National Park, a UNESCO World Heritage Site where you can literally walk between two tectonic plates. The scale of the place is incredible, with dramatic cliffs and wide open spaces that make you feel tiny.
Brúarfoss
Next up was Brúarfoss, a bit more off the beaten path. The short hike is absolutely worth it: the water is an unreal shade of bright blue, unlike anything we’d seen before.
Efstidalur II Farm Ice Cream
We then stopped at Efstidalur II, a working farm that serves fresh, homemade ice cream. Sitting there with a view of the cows in the barn while eating some of the creamiest ice cream in Iceland was… unexpectedly one of the highlights of the day.
Strokkur Geyser
From there, we headed to Strokkur Geyser, which erupts every few minutes. Watching boiling water shoot high into the air never gets old. It’s one of those natural phenomena that feels surreal even when you’re standing right next to it.
Gullfoss
A short drive brought us to Gullfoss, one of Iceland’s most powerful waterfalls. The sheer force of the water crashing into the canyon is something you feel as much as you see.
Kerið Crater
We wrapped up the Golden Circle at Kerið Crater, a volcanic crater lake with vivid red rock surrounding deep blue water. A quick but striking stop.
The Secret Lagoon: A Budget-Friendly Hot Spring in Iceland
To end the day, we relaxed at the Secret Lagoon in Flúðir, a quieter and more affordable alternative to Iceland’s more famous geothermal spas. Sitting in warm water under the open sky after a long day of exploring was the perfect way to unwind.
Day 2: Iceland’s South Coast Glaciers on a Budget
Day two was all about dramatic landscapes, and it didn’t disappoint. It’s also the longest driving day of the trip, so an early start pays off. For more stops along this route, see our South Coast Iceland travel guide.
Fjaðrárgljúfur Canyon
Our first stop was Fjaðrárgljúfur Canyon, a winding, moss-covered canyon that looks like something out of a fantasy film. Walking along the edge and taking in the views felt almost unreal.
Svínafellsjökull Glacier
We continued to Svínafellsjökull, a glacier tongue extending from Vatnajökull, Europe’s largest glacier, inside Vatnajökull National Park. Seeing the layers of ice up close really puts into perspective how powerful and ancient these landscapes are.
Jökulsárlón Glacier Lagoon
Next came one of the most iconic spots in Iceland: Jökulsárlón Glacier Lagoon. Huge chunks of ice float slowly across the lagoon, breaking off from the glacier and drifting toward the ocean. It’s calm, quiet and completely mesmerising.
Diamond Beach
Just across the road is Diamond Beach, where those same ice chunks wash up on black sand, glistening like crystals. It’s one of the most unique black sand beaches in Iceland.
Fjallsárlón Iceberg Lagoon
We also stopped at Fjallsárlón Iceberg Lagoon, which is smaller and less crowded than Jökulsárlón but just as beautiful. A hidden gem if you want a quieter experience.
Day 3: Iceland’s Waterfalls & Beaches on a Budget
Our final day mixed adventure with a bit of relaxation on the way back towards Keflavík.
Horse Riding on Icelandic Horses
We started the morning with a horse riding experience, exploring Iceland’s rugged landscapes on the country’s famous Icelandic horses. They’re smaller than typical horses but incredibly strong and surprisingly smooth to ride.
Reynisfjara Black Sand Beach
Next, we visited Reynisfjara, the famous black sand beach with towering basalt columns and powerful waves crashing onto the shore. It’s beautiful but wild, and you definitely feel the raw power of nature here.
Safety tip: Reynisfjara is known for sneaker waves that can reach much further up the beach than expected. Check the latest advice on Safetravel.is, follow the warning signs, keep well back from the water and never turn your back on the sea.
Skógafoss
From there, we headed to Skógafoss, one of Iceland’s most iconic waterfalls. You can walk right up to it (and get soaked in the process) or climb the stairs for a view from above.
Seljalandsfoss
A short drive away is Seljalandsfoss, another must-see waterfall, but this one you can walk behind. Seeing the water cascade down from that perspective is unforgettable. Bring a waterproof jacket!
The Blue Lagoon
We ended our trip at the Blue Lagoon, Iceland’s most famous geothermal spa. Yes, it’s touristy, but after three days of exploring, soaking in the warm, mineral-rich water was the perfect way to finish. It’s also close to Keflavík Airport, so it works well right before returning the camper.
Tip: book your Blue Lagoon tickets in advance and check its opening status before you go, as volcanic activity on the Reykjanes peninsula can occasionally cause closures.
Tips for Doing Iceland on a Budget
- Combine transport and accommodation: a campervan replaces both a rental car and a hotel.
- Check the weather and roads daily: use the Icelandic Met Office forecast and Umferdin.is road conditions so you can adjust your route, which is easy in a camper.
- Cook your own meals: eating out adds up fast in Iceland. Stock up at budget supermarkets and use the camper’s kitchen.
- Stay at campsites: overnight stays in campervans are only allowed at designated campsites, not by the roadside. See our guide to campsites in Iceland for locations and prices.
- Mix free and paid sights: most waterfalls, beaches and canyons are free to visit (some charge for parking), so save your spending for one or two special experiences.
- Choose the cheaper hot spring: smaller pools like the Secret Lagoon cost less than the big-name spas.
Final Thoughts: Is Iceland on a Budget Worth It?
Iceland might not be the cheapest destination in the world, but it’s far from impossible to do on a budget. Renting a campervan saved us money on accommodation and transport while giving us the freedom to explore at our own pace.
In just three days, we saw waterfalls, glaciers, volcanoes, black sand beaches and more, all while chasing ever-changing weather and landscapes that felt almost otherworldly.
If you’ve been putting off Iceland because of the cost, consider this your sign: it’s more accessible than you think and absolutely worth it.
FAQ: Iceland on a Budget by Campervan
Is 3 days enough to see Iceland on a budget?
Three days is enough to see the Golden Circle and the highlights of the South Coast, as far east as Jökulsárlón. It makes for long driving days, so if you can add an extra day or two, you’ll have more time at each stop.
Is a campervan the best way to see Iceland on a budget?
For most travellers, yes. A campervan covers both your transport and your bed, and the built-in kitchen means you can cook instead of eating out. Campsite fees are usually much lower than a night in a hotel.
Can you sleep anywhere in a campervan in Iceland?
No. Overnight stays in campervans are only permitted at designated campsites. There are campsites all along the Golden Circle and South Coast, many open year-round.
Do I need a 4×4 for this route?
Not for this itinerary. All the stops are reachable on paved roads with a standard campervan. You only need a 4×4 camper if you plan to drive F-roads into the Highlands. In winter, read up on winter camping in Iceland first.
Plan Your Own Iceland on a Budget Road Trip
Ready to follow our route? Rent.is has Iceland’s largest campervan fleet, from compact campers for two to 4×4s, with free 24/7 pickup just five minutes from Keflavík Airport.
