9-Day Ultimate Budget Backpacking Route in Iceland
Iceland is often perceived as an expensive destination, but for the savvy backpacker, it offers a wealth of free natural wonders. By utilizing the Strætó public bus system, shopping at discount grocery stores like Bónus, and staying in communal hostels, you can witness the Aurora Borealis and massive glaciers without a massive bill.
This 9-day route takes you from the vibrant streets of Reykjavík through the dramatic South Coast and up to the northern capital of Akureyri. Focus on the raw beauty of the landscapes and the warmth of the local geothermal pools to maximize your experience while keeping your daily spend under sixty dollars.
The Itinerary
Day 1: Reykjavík, Iceland - Arrival & City Orientation
Arrival at Keflavík International Airport
Land and catch the Flybus or Airport Direct to the city center. This is the most cost-effective way to reach the capital from the airport.
Grocery Run at Bónus
Stock up on supplies at the most famous discount supermarket in Iceland. Look for the pink pig logo to buy affordable snacks and sandwich ingredients for the week.
Hallgrímskirkja Visit
Marvel at the exterior of this iconic expressionist church. While the tower climb costs money, the sanctuary itself is free to enter and offers a peaceful atmosphere.
Harpa Concert Hall Walk
Wander through the glass-geometric Harpa building. It is a masterpiece of modern architecture and completely free to explore the interior public spaces and enjoy the harbor views.
Day 2: Reykjavík, Iceland - Local Culture & Geothermal Baths
Sun Voyager Sculpture
Start your morning with a walk along the waterfront to see the Sólfar (Sun Voyager) sculpture, a dreamboat representing the promise of undiscovered territory.
Laugardalslaug Geothermal Pool
Skip the expensive Blue Lagoon and head to the city's largest public pool. It features hot tubs, a steam bath, and a heated pool for a fraction of the price of tourist spas.
Reykjavík Botanical Garden
Located in Laugardalur, this park is free to the public and offers a diverse collection of Arctic flora and a charming pond.
Cheap Eats at Bæjarins Beztu Pylsur
Enjoy Iceland's most famous street food—a hot dog with 'the works.' It is the most affordable meal in the city and has been visited by celebrities and presidents alike.
Day 3: Golden Circle, Iceland - The Classic Route
Þingvellir National Park
A UNESCO World Heritage site where the tectonic plates meet. Walk through the Almannagjá gorge where the Icelandic parliament was founded in 930 AD.
Geysir Geothermal Area
Witness Strokkur erupting every 6-10 minutes. The entry to the area is free, making it a perfect stop for budget travelers to see the earth's raw power.
Gullfoss Waterfall
Watch the massive Hvítá river plunge into a deep canyon. The viewing platforms are free and offer spectacular mist-filled photo opportunities.
Kerið Crater
A volcanic crater lake with strikingly blue water. While there is a small nominal fee for maintenance, it is one of the cheapest natural attractions in the region.
Day 4: Vík, Iceland - South Coast Waterfalls
Strætó Bus to the South
Catch the public bus (Line 51) heading east. The scenery out the window is worth the ticket price alone as you pass mountains and glaciers.
Seljalandsfoss
Hop off to see this unique waterfall that you can walk behind. It is located right off the Ring Road and requires no entrance fee.
Skógafoss
One of the biggest waterfalls in the country with a 60-meter drop. Climb the stairs to the top for a free, breathtaking view of the coastline.
Arrival in Vík í Mýrdal
Check into your hostel in this small, charming village known for its red-roofed church and proximity to black sand beaches.
Day 5: Vík, Iceland - Black Sands & Sea Stacks
Reynisfjara Black Sand Beach
Walk along the world-famous black sands and admire the Reynisdrangar basalt sea stacks. Always keep a safe distance from the powerful waves.
Dyrhólaey Promontory
Hike up to the lighthouse for views of the massive stone arch and, during summer months, sightings of nesting Atlantic Puffins.
Vík i Mýrdal Church
Walk up the hill to the village church for the best panoramic view of the town and the ocean below.
Hostel Dinner Night
Cook a shared meal at your hostel using ingredients from the local supermarket to save on the high cost of Icelandic restaurants.
Day 6: The Long North, Iceland - Travel to Akureyri
Boarding the Northbound Bus
Prepare for a scenic journey. You will take the bus back to Reykjavík and then transfer to Line 57, which travels across the island to Akureyri.
Lunch Stop in Borgarnes
The bus typically stops at a transit hub. Grab a quick sandwich and enjoy the views of the fjords before continuing north.
Arrival in Akureyri
Disembark in Iceland's 'Capital of the North.' The city is nestled at the base of Eyjafjörður and is much smaller and more walkable than Reykjavík.
Akureyrarkirkja Steps
Walk up the stairs of the city's main church for a evening view of the fjord and the city lights.
Day 7: Akureyri, Iceland - Arctic Botany & Fjord Life
Akureyri Botanical Garden
Explore one of the northernmost botanical gardens in the world. It is free to enter and provides a lush, tranquil escape in the middle of town.
Free City Bus Tour
Take advantage of Akureyri's unique perk: all local city buses are free of charge for everyone! It is a great way to see different neighborhoods.
Art Museum & Street Art
Wander through the 'Art Street' (Listagilið) and admire the murals and local galleries that characterize the city's creative scene.
Brynja Ice Cream
Visit the most famous ice cream shop in Iceland for a 'soft serve' treat—a local tradition regardless of the freezing temperature.
Day 8: Mývatn, Iceland - Volcanic Wonders
Bus to Mývatn Area
Take a day trip bus to the Lake Mývatn region, known for its high geothermal activity and surreal landscapes.
Hverir Geothermal Field
Walk among bubbling mud pools and steaming fumaroles. The orange landscape looks like Mars and is free for visitors to explore.
Grjótagjá Cave
Visit the small lava cave famous for being a filming location in 'Game of Thrones.' While bathing is no longer allowed, the crystal blue water is stunning.
Dimmuborgir Lava Formations
Hike through the 'Dark Castles,' an area of unusually shaped lava fields that resemble ancient ruins and fortresses.
Day 9: Return to Reykjavík, Iceland - Final Farewells
Flight or Bus Return
Depending on your remaining budget, take the 45-minute domestic flight (sometimes cheap if booked late) or the 6-hour bus back to the capital.
Laugavegur Window Shopping
Stroll down the main shopping street of Reykjavík. Enjoy the vibrant colors and atmosphere one last time before heading out.
Old Harbour Relaxation
Sit by the water at the Old Harbour and watch the fishing boats come in. It’s a great spot to reflect on your 9-day journey.
Check-in Near Airport
Head back toward Keflavík for your final night to ensure a stress-free morning departure.
Best Time to Visit Iceland
For budget travelers, the shoulder seasons of May and September offer the best balance. You will experience enough daylight to see the sights and potentially catch the Northern Lights, but without the peak summer prices of July and August. Winter (November to March) is the cheapest time for accommodation, but many bus routes are restricted and the weather can be extremely harsh.
Currency & Money
The local currency is the Icelandic Króna (ISK). Iceland is nearly 100% cashless; you can pay for even the smallest items (like a single hot dog) using a debit or credit card with a chip and PIN. Tipping is not expected and service charges are typically included in the price. Always choose to pay in the local currency on card machines to get the best exchange rate.
Getting Around Iceland
Iceland does not have a rail network. The primary mode of public transport is the Strætó bus system, which connects most major towns along the Ring Road. For more flexibility, carpooling via sites like Samferda.is is a popular way to split fuel costs. Within Reykjavík and Akureyri, the cities are very walkable, and public buses are efficient for reaching the outskirts.
