It is located in the area of the municipality of Þingeyjarsveit in the north-east of the country near the beginning of the Sprengisandur highland slope within sight of the ring road. Laugar is located east of Goðafoss.
The water of the Skjálfandafljót falls over a width of 158 m, which is interrupted by three rocks, about 11 m in a wide arc.