4-Day Iceland Summer Itinerary on a Budget: Hot Springs, Waterfalls, and Reykjavik

Iceland has been one of my all-time favourite travel destinations—and for good reason! With its mix of dramatic waterfalls, geothermal spas, glacier lagoons, and colourful city life, it’s the perfect place for a summer adventure.

This 4-day Iceland summer itinerary includes everything from natural wonders and hot springs to Reykjavik gems and tips for exploring Iceland on a budget. Thanks to the Midnight Sun, you’ll have nearly 24 hours of daylight to fit it all in!

Visiting in winter instead? Check out my 4-day winter itinerary.

When to Visit Iceland

The best time to visit Iceland is year round and summer is a beautiful time to visit the country. The summer is mild, with temperatures reaching around 10-15 °C. There is almost 24 hour daylight so there is lotsof sunlight to enjoy outdoor activities and stretch your days out. While the winter months offer unique experiences like visiting in Ice Cave, the summer months bring wildlife and natural wonders to life.

What to Wear in Summer in Iceland

July is the hottest month in Iceland and averages 10-15°C (about 50°-59° Fahrenheit). You will definitely want to pack some layering options. Because the weather changes so frequently in Iceland, having options to quickly change throughout the day is ideal. In the summer, you will want to pack a mix of tshirts, sweaters and pants. Make sure to pack a waterproof jacket and shoes that can get wet (or bring extra changes of socks). Don’t bother with an umbrella in Iceland because of the wind!

Where to Stay

You can easily spend 4 days in Iceland by sleeping in Reykjavik and do few day trips from the city. You can either rent a car or book bus tours from Reykjavik. This itinerary spends all 3 nights in Reykjavik with some options for the best day trips in Iceland. If you’re up for driving, you can still stay in Reykjavik and return nightly. I like staying in one place rather than moving every night so a 4-day/3-night itinerary is ideal!

Budget Tips for Iceland

Summer in Iceland on a budget is doable. While summer season is usually the most expensive time to travel, you can definitely do this on a budget. BudgetYourTrip.com is an incredibly handy and accurate tool to determine a budget for a trip. I use this to plan all my trips to get a good sense of how much I need to save to travel. While Iceland sustainably sources their groceries, and many fruits and vegetables are grown year-round in greenhouses using geothermal energy (of which there is an abundance in Iceland), Iceland imports a lot of food/farming equipment and has a 14% VAT tax on food which makes food very expensive.

Ways to save: shop at the BONUS Grocery Store to stock up on food. Shopping at local grocery stores and making your own food is always an easy way to save on food. Another tip is to eat out for lunch instead of dinner to save a few bucks. Stop at the natural hot springs that are on the side of the Ring Road rather than go to Blue Lagoon.

4 day Iceland Itinerary

There are an abundance of day tours from Reykjavik, such as visiting the Golden Circle, southeast Iceland, westfjords, and more! You can enjoy summer in Iceland on a budget, and ultimately your budget will depend on what YOU really want to do. Blue Lagoon is a wonderful option for those who don’t mind spending a bit more on a relaxing day at the spa, or if you’re on a road trip you can stop at the natural hot springs on the side of the Ring Road.

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Day 1: Arrival and Blue Lagoon or Golden Circle

The Blue Lagoon is a geothermal spa in southwest Iceland with a range of prices: comfort (cheapest), premium (mid-range) or luxury (most expensive). The Golden Circle is an area in southwest Iceland with three of the top tourist attractions: Thingvellir National Park, the Geysir Geothermal Area, and Gullfoss waterfall. If you’re looking for a relaxing visit, start at the Blue Lagoon but if you’re looking for an adventurous start, head to the Golden Circle. Both of these options are great for visiting Iceland in the Summer on a Budget to see the most popular destinations in the country.

Is Blue Lagoon worth it? If you enjoy spas and taking time to relax, absolutely! The comfort package allows you to visit without breaking the bank. If you plan to have lunch/dinner at the Lava Restaurant, I do recommend the Premium package.

If you’re arriving on a red-eye, book your Blue Lagoon visit for the morning to relax before checking into your hotel.

Pro tip: Blue Lagoon is closer to the airport than to Reykjavik, making it ideal for arrival or departure days.

Golden Circle: You can book a tour or rent a car and drive to the Golden Circle yourself (about a 2 hour drive). A tour is easy to book and allows you to sit back and enjoy the drive; however, you have much more freedom renting a car and driving yourself. You’ll find there are a lot of places to stop along the way for scenic pictures and a beautiful drive. Most tours include a stop at the Gulfoss waterfall, Thingvellir National Park and Geysir Park.

Reykjavik: After the Blue Lagoon or the Golden Circle, head back to Reykjavik to stay for the night. There are plenty of options and staying anywhere west of Highway 40 is a reasonable walk to downtown. Anything close to the Hallgrimskirkja (Church) is in the centre of downtown and the hustle and bustle of Reykjavik.

Day 2: South Coast Adventure

This makes for quite a long day, but it will be worth it to make it to all the stops! You can book a day trip through Arctic Adventures or another tour company, or rent a car and see more for yourself. Self-driving in the Ring Road allows for greater flexibility to see more places, as well as avoid crowds.

• Stop at Seljalandsfoss (the waterfall you can walk behind)
• Gljufrabui (the waterfall through the crevice)
• Skogafoss
• Vik to stop for lunch
• Diamond Beach and Jökulsárlón Glacier.

Read more: Golden Circle or South Coast?

If you have time, you can stop at the Reynisfjara Black Sand Beach or Sólheimasandur airplane wreckage: This epic 1973 plane crash is on the black sand beaches in southeast Iceland. Everyone on the plane survived! It’s only accessibly by walking about an hour from the road on the black sand beaches but it’s worth the adventure! Be cautious and watch the weather: high winds may cause sand storms and it’s hard to find on the best of days. The coordinates are (63 27.546-19 21.887).

Approx. driving time: 8 hours round trip
Total stops: 5–7
Suggested start time: 7–8 a.m. to maximize sunlight

Day 3: Choose Your Adventure

• Whale watching tour in Húsavík or Reykjavik
• Snorkel between tectonic plates in Silfra
• Hike Glymur Waterfall or Reykjadalur hot spring valley
• Take a puffin or Elephant Rock boat tour (seasonal)
• Walk through lava fields

Day 4: Things to do in Reykjavik

Spend at least 1 of your 4 days in Iceland in the capital city. For breakfast, stop at Brass Restaurant or Sandholt. Reykjavik is a very walkable city, so put on your comfortable shoes and spend some time getting to know Iceland’s capital city. There are a variety of murals to search for, museums to enjoy, free attractions like the Sun Voyager and Harpa Concert Hall.

The City Card is worth it if you are spending most of the day in the city. My personal favourite museums are the Settlement Exhibition and the Icelandic Phallological Museum. The Settlement Exhibition is a museum that was built on an archaeological dig that uncovered a viking longhouse in the city. The museum is very interactive and offers a great overview of the settlement of the vikings in Iceland.

If souvenir shopping is more your style, shop along Laugavegur and, if you didn’t get to the night before, stop at Hallgrímskirkja for panoramic views and the Sun Voyager statue on the waterfront.

Looking for souvenirs? Don’t miss Icelandic wool sweaters (lopapeysa), lava rock jewelry, and handmade soaps.

Want to spend more than 4 days in Iceland? Read my 10-day Ring Road itinerary to see more of what this amazing country has to offer.