Munich vs Reykjavik
Salary equivalence calculator
Price-level ratio 1.297. Adjust to recalculate.
| Metric | Munich | Reykjavik | Difference |
|---|---|---|---|
| Price level index (NYC=100) | 74.0 | 96.0 | +29.7% |
| Rent index (NYC=100) | 62.0 | 66.0 | +6.5% |
| Equivalent of €120,000 | €120,000 | €155,676 | costlier |
- Reykjavik is about 30% more expensive than Munich, so you need a higher nominal salary to break even.
How far does your salary go in Reykjavik?
Moving from Munich to Reykjavik changes your cost of living in ways a currency conversion can't capture. What matters is purchasing power: how much the same basket of housing, food, transport and services costs in each place. On our index, where New York City = 100, Munich sits at 74.0 and Reykjavik at 96.0.
That makes Reykjavik roughly 30% more expensive. A salary of €120,000 in Munich translates to about €155,676 in Reykjavik. Above that and you gain in real terms; below it and you take an effective pay cut.
Housing drives the gap
Rent is the largest and most variable line in most budgets. Reykjavik's rent index is 66.0 versus Munich's 62.0.
Common mistakes
- Converting currency instead of purchasing power.
- Ignoring taxes, which vary by jurisdiction.
- Forgetting one-off relocation costs.
Bottom line
Reykjavik is about 30% more expensive than Munich, so you need a higher nominal salary to break even. Use the calculator to plug in your real salary and compare against any concrete offer.
Rent equivalence: Munich vs Reykjavik
Based on the rent-index ratio of 1.065 (Munich 62.0 vs Reykjavik 66.0, NYC = 100).
Housing is usually the biggest single difference between two cities, and it moves independently of the overall price level. Renting the equivalent home in Reykjavik costs about 6% more than in Munich. Enter your actual rent above to see what a like-for-like place would cost after you move — a more honest gauge of affordability than a raw salary conversion, since renters and owners feel very different impacts.
Frequently asked questions
What salary do I need in Reykjavik to match Munich?
To keep the same standard of living as €120,000 in Munich, you would need roughly €155,676 in Reykjavik, a price-level ratio of 1.30.
Is Reykjavik more expensive than Munich?
Yes, by about 30% on the overall price level.
How much is rent in Reykjavik compared to Munich?
Rent in Reykjavik is about 6% higher than in Munich (rent indices 62.0 vs 66.0, NYC = 100). Use the rent calculator on this page for your exact figure.
How is the equivalent salary calculated?
We multiply your salary by the ratio of the two cities' composite price-level indices (housing, food, transport, services), benchmarked so New York City = 100.
Methodology
We build a composite price-level index for each city from official regional price parities and international purchasing-power parities across housing, food, transport and services, normalized so New York City = 100. The equivalent salary is your salary multiplied by the ratio of the destination index to the origin index. It estimates the income needed to hold real purchasing power constant and does not model taxes.