Iceland Road Trip: Itineraries, Budget & Tips

With breathtaking mountain passes, stunning coastal routes, and ring roads winding through lava fields and towering glaciers, Iceland is a road trip dream. But navigating the country doesn’t have to be daunting: Dinogo’s guide will ensure you nail your Iceland road trip on your first try.

What’s the best way to reach Iceland?

Thanks to Iceland’s meteoric rise as a must-see destination in recent years, the country is now better connected with flights from the U.S. than ever before — there are now frequent direct routes from New York City, Chicago, Los Angeles, Seattle, Denver, and more.

Almost all flights head to Iceland’s primary entry point, Keflavík International Airport, located just a 50-minute drive southwest of Reykjavik — a stunning, otherworldly journey that serves as the perfect introduction to any Iceland road trip itinerary.

Ideal vehicles for your Iceland road trip

In our imagination, Iceland resembles a wilderness like Valhalla — filled with majestic fjords, glacial valleys, and towering mountains. While this holds true, Icelanders have skillfully created winding roads and cliffside routes that connect all these breathtaking sights.

It’s a breeze to drive from Reykjavík all the way around the country’s circular Route 1 — or Ring Road — to destinations like Seyðisfjörður in the far east or Ísafjörður in the stunning Westfjords, all on well-maintained asphalt roads.

And the best part? You can choose any type of car rental you prefer. I once traveled from Borgarfjörður Eystri — the folkloric capital of elves, known as ‘huldufólk’ — all the way to Reykjavík in a Toyota Aygo.

To venture further inland, especially on the F-roads — the rugged, unpaved gravel paths that lead to Iceland’s less explored interior — it’s an easy switch from a simple hatchback to a robust 4x4. Before finalizing your car rental for the road trip, ensure you have the appropriate insurance to cover any minor dents or scratches.

Optimal time for an Iceland road trip

If you’re a fan of the great outdoors, Iceland will captivate you regardless of the season you choose to visit.

Naturally, summer is for those who prefer to drive during daylight hours. In June, the midnight sun bathes the country in light for 22.5 hours each day. From November to April, expect dark nights filled with opportunities to witness the northern lights, with January being the darkest month, offering just 6.7 hours of daylight on average (source: weatherbase.com). Be aware that snowstorms can temporarily close the Ring Road during this time.

For those seeking pleasant weather, May or June are the driest months, while July and August bring the warmest temperatures. However, even then, the average is only around 52 °F, which is hardly ideal for sunbathing or wild swimming. Fortunately, geothermal spas and heated outdoor pools are available for every occasion.

As Iceland has become one of Europe’s top destinations, the period from November to February offers the quietest roads and, arguably, a significant perk — more affordable accommodations. This trade-off makes up for the shorter days. June to August are undeniably the most popular months to visit (data based on Dinogo’s flight searches).

Calculate your budget for an Iceland road trip

Before embarking on your Icelandic adventure, you’ll want to estimate your expenses. Here’s valuable information compiled from Dinogo’s comparisons with numerous travel providers to help you gauge the cost of your road trip plans.

A 10-day journey along the Ring Road

Day 1: Reykjavík (1 night)

Spending ten days in Iceland will surely leave you in awe. After taking in the volcanic scenery on your way from Keflavík International Airport, let Reykjavík steal the spotlight. Start your journey at the art deco Hallgrimskirkja church, then navigate the colorful streets to visit the National Museum of Iceland, Harpa Concert Hall, and the Sun Voyager sculpture, resembling the ribs of a Viking ship along the waterfront.

Where to stay: Located in a repurposed biscuit factory, Kex Hostel offers a trendy downtown boutique experience, complete with an industrial vibe and a welcoming restaurant, bar, and self-catering kitchens for budget-conscious travelers.

Day 2: Golden Circle (1 night)

Distance from Reykjavík: 73 miles — 2 hours

Buckle up and get ready for your first destination: the iconic Golden Circle. This picturesque 190-mile route starts just 25 miles east of Reykjavík and encompasses three must-see natural wonders: Thingvellir National Park, the Geysir Geothermal Area, and Gullfoss Waterfall. Its straightforward yet captivating itinerary makes it the most popular one-day adventure in the country.

Where to stay in the Golden Circle area: For a cozy retreat, Blue Hotel Fagrilundur offers charming cabins and hot tubs, conveniently located near the Golden Circle’s highlights. For a splurge, consider Torfhús Retreat, featuring turf-roofed chalets with private thermal pools.

Day 3: Vik (1 night)

Distance from Golden Circle: 110 miles — 2.5 hours

While the southern coast of Iceland boasts incredible roadside scenery, Vik elevates the drama to new heights. Among its immediate attractions are the thundering waterfalls nestled in the gorges, seemingly carved by a giant's axe. Notable highlights include Seljalandsfoss and Skógafoss, both beautifully set against cliffs and ocean vistas.

Where to stay: Close to Vik’s famous black sand beach, which was featured in a well-known film, Hotel Kria offers a futuristic ambiance with its sleek, minimalist design.

Day 4: Vatnajökull National Park (1 night)

Distance from Vik: 87 miles — 1 hour 40 minutes

Get ready for an exhilarating glacier adventure on Europe’s largest ice cap! This vast national park is a haven for thrill-seekers, with mountain guides offering glacier walks and ice climbing experiences starting from the Skaftafell base camp.

I’ll admit I have a fear of heights, yet I found the courage to embark on a micro-adventure across the crevasse-laden surface of Vatnajökull Glacier. For those preferring a more relaxed experience, there are trails suitable for all ages and skill levels accessible from the Skaftafellsstofa Visitor Centre.

Where to stay: Nestled with a stunning view of Vatnajökull National Park, Hotel Skaftafell offers the comforts of home along with breathtaking sights of the glacier valley behind it.

Day 5: Djúpivogur (1 night)

Distance from Vatnajökull National Park: 143 miles — 3 hours

Thirty-five miles to the east lies Jökulsárlón, Iceland’s deepest glacial lake at 1,000 feet. This remarkable spot tantalizes the senses with glimpses of the immense ice field to the north and serves as the first stop on the journey to Djúpivogur — a zodiac cruise is a must-do here. The vastness is awe-inspiring, evoking the feeling of stepping into a new Ice Age. Continuing northeast, the road meanders towards Djúpivogur, showcasing the spectacular Berufjörður.

Where to stay: Hótel Framtíð in Djupivogur is a charmingly creaky establishment housed in a restored Danish merchant’s residence from 1904.

Day 6: Seydisfjordur (1 night)

Distance from Djúpivogur: 110 miles — 2 hours 30 minutes

The route to Seydisfjordur is a journey of its own, as the village has long been isolated from the rest of Iceland — situated 17 miles off the Ring Road and blocked by the Fjarðarheiði mountain pass. However, the breathtaking valley makes the trip worthwhile. Along the way, be sure to stop in the mountain-encircled Reyðarfjörður and gather supplies in Egilsstaðir.

Where to stay: Nestled in the heart of village life, Hotel Aldan spans several renovated structures, including the former bank and post office. The main building features Norð Austur, a sushi restaurant with a unique Icelandic flair.

Day 7: Lake Mývatn (1 night)

Distance from Seydisfjordur: 125 miles — 2 hours 40 minutes

Lake Mývatn earns its title as the self-styled “Northern Lights Capital of Iceland” in winter, but it’s enchanting year-round, especially thanks to the geothermal Mývatn Nature Baths — milky pools perfect for steaming and soaking in nature's embrace. For a glimpse into Iceland's folklore surrounding the mystical 'huldufólk,' take a detour northeast along Route 94, crossing a glacial river delta to the gravel road leading to Borgarfjörður Eystri.

Where to stay: A major perk of Berjaya Mývatn Hotel is its proximity to Lake Mývatn, just a five-minute stroll away. It also features a charming restaurant, a cozy pub, and meticulously designed rooms that rival the best in Reykjavík.

Day 8: Akureyri (1 night)

Distance from Lake Mývatn: 46 miles — 1 hour

With few exceptions, Northern Iceland stands out as one of Europe's top destinations for whale watching. Peacefully quiet compared to other regions, the coastline serves as prime habitat for cetaceans, with both Akureyri and nearby Husavik (46 miles further north) welcoming minke, fin, orca, and blue whales into their tranquil bays. Witnessing a humpback breach right before you encapsulates the raw, three-dimensional Iceland you’ve always dreamed of.

Where to stay: At this point in your Iceland Ring Road journey, you might crave a shift from rural tranquility to urban energy. Akureyri offers the fastest pace in the north, with the iconic Hótel Kea serving as a central hub.

Day 9: Stykkishólmur (1 night)

Distance from Akureyri: 220 miles — 4 hours 30 minutes

Don’t worry about the long drive today. In a country roughly the size of Colorado, you’re bound to have at least one lengthy day on the road, and today is that day. The silver lining is the stunning scenery you've come to love—be sure to make stops at the sparkling Bergárfoss and the family-friendly Icelandic Seal Center—before reaching Stykkishólmur, one of Iceland’s most charming towns.

About 25 miles further west from Grundarfjörður lies Kirkjufell, also known as Church Mountain. This peak has become the most photographed mountain in the country. On my last visit, the parking lot was nearly full, so arrive early or late to dodge the crowds.

Where to stay: Aside from a few cozy guesthouses, there’s only one main option in town: Fosshotel Stykkishólmur. True to form for one of Iceland’s leading hotel chains, the rooms are fresh and have a sleek, minimalist aesthetic.

Day 10: Reykjavík (1 night)

Distance from Stykkishólmur: 108 miles — 2 hours 20 minutes

It’s time to return to the capital, traversing the lava-scarred terrains of Snæfellsnes, with a detour to admire Snæfellsjökull, the stunning glacier-capped stratovolcano. Once you arrive in Reykjavík, a break from driving is a must. For those seeking a touch of luxury, treat yourself at the Sky Lagoon in Kópavogur, or conclude your remarkable journey in the surreal waters of the geothermal Blue Lagoon on the Reykjanes Peninsula.

Where to stay: Fosshotel Reykjavik, located in the city’s business district, is Iceland’s largest hotel with 320 rooms. It’s renowned for its fantastic views of the bay and the Bjorgardurinn bar on the lower ground floor.

The Snæfellsnes Peninsula in 3 days

Day 1: Búðir (1 night)

Distance from Reykjavík: 111 miles — 2 hours 30 minutes

For breathtaking beauty that transcends what Reykjavík offers, set your course northwest from the capital, passing through two sea tunnels to the Snæfellsnes Peninsula. With sheep outnumbering humans, you’ll find little traffic here. This region is one of Iceland’s most untamed, so don your windproof, water-resistant jacket and take in the stunning Bjarnafossa, a waterfall cascading dramatically off a sheer cliff, along with Búðakirkja, Iceland's iconic black church.

Where to stay: Just a short stroll from Búðakirkja—quite literally the only place to stay in this coastal area—Hótel Búðir boasts spacious rooms, a restaurant, and a bar, making it the perfect base.

Day 2: Stykkishólmur (1 night)

Distance from Búðir: 80 miles — 1 hour 50 minutes

With so many highlights on Snæfellsnes, rise early and head towards Arnarstapi, home to impressive lava tube tunnels beneath the Snæfellsjökull stratovolcano. Although Jules Verne never set foot in West Iceland, this national park inspired his 1864 novel, Journey to the Center of the Earth.

The journey continues: don't miss the striking black sand beach at Djúpalónssandur and Saxhóll, a volcanic crater that offers breathtaking views of Snæfellsjökull. Frequent stops along the roadside will reveal a series of stunning vistas as you make your way to Stykkishólmur.

Where to stay: Just outside the town center, Fosshotel Stykkishólmur is the best option for a room in this charming harbor town. While many tourists make day trips from Reykjavík, embracing the slower Icelandic pace often leads to the desire to stay longer and indulge in a memorable meal at the nearby Narfeyrarstofa.

Day 3: Reykjavík (1 night)

Distance from Stykkishólmur: 108 miles — 2 hours 20 mins

Leaving behind the myriad islands of Stykkishólmur, the road winds south through stunning mountain landscapes, always tempting you to pause for a hike. A lesser-known attraction is the Bjarnarhöfn Shark Museum, where the owner narrates the fascinating process of preparing fermented shark, an Icelandic delicacy. In the capital, don’t miss the unusual Icelandic Phallological Museum, which showcases the collection, study, and exhibition of penis specimens.

Where to stay: For your final night, treat yourself to a stay at The Reykjavik EDITION. This exquisite hotel is among the most luxurious in the country, featuring a vibrant bar, a top-notch restaurant, and lavish suites.

What inspired this guide?

Through extensive experience and research. I’ve been exploring Iceland for over 15 years, contributing to some of the world’s top travel magazines, newspapers, and guidebooks. I've traveled the Ring Road and ventured to the Snæfellsnes Peninsula, uncovering unforgettable sights and quirky landscapes both on and off the beaten path, while enjoying stays at some of Iceland’s finest hotels.

The Dinogo team has also played a crucial role, providing valuable insights and research on the best times to visit and the costs associated with the Iceland road trip itineraries presented here.