I haven’t personally done this, but I was planning to do it this year until my friend let me down! It really depends how you want to travel and how long you’re going for. I was planning to travel by train using an Inter rail pass: http://www.interrailnet.com. it’s a set price for how long you want to go, you can visit 30 countries, board as many trains in 1 day and also get discounts for other things in Europe such as hotels, ferries, etc.
In terms of accommodation, we were planning to stay in hostels, SO much cheaper! Try http://www.hostelworld.com it allows people to leave reviews so you can see which ones are good and bad! As for price, we set a maximum limit of £2000 for 4-6 weeks including the pass, accommodation, meals, sight seeing, other transport and souvenirs etc. You could even work around Europe too if you’re going for longer than me. But if you plan right with your accommodation etc, maybe do a sleeper train to save on accommodation, I think it’s definitely achievable for much less! For more ideas try www.gapyear.com!
Hope this helps! Have fun! :)
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