Your Commute Costs More Than You Think (Calculate It)

You drive 30 miles to work. Gas is $3.50 a gallon. Your car gets 28 MPG. So your daily commute costs about $7.50 in gas, right?

Wrong. Your actual commute cost is probably 3-4x higher. Here’s what you’re really spending.

The IRS Knows Something You Don’t

The IRS sets a standard mileage rate every year. For 2024, it’s 67 cents per mile. That’s not arbitrary—it’s based on actual average costs of operating a vehicle.

Your 60-mile round trip commute at 67¢/mile: $40.20 per day

That’s $200/week. $867/month. $10,400/year.

Feeling that gas-only calculation was optimistic?

Breaking Down the Real Costs

Let’s build up from zero with a typical commute vehicle:

1. Fuel ($150-250/month)

This one you feel every week:

• 60 miles/day × 22 days = 1,320 miles/month
• At 28 MPG = 47 gallons
• At $3.50/gallon = $165/month

2. Depreciation ($200-400/month)

This is the big one people ignore. Your car loses value every mile.

A $30,000 car driven 15,000 miles/year might depreciate:

• Year 1: $4,500 (15%)
• Years 2-5: $2,500/year (8%)

That’s roughly $250-375/month in value disappearing. Not gone when you sell—gone while you drive.

3. Maintenance ($100-150/month)

Regular wear and tear adds up:

• Oil changes: $40-80 every 5,000 miles
• Tires: $600-1,000 every 50,000 miles
• Brakes: $300-600 every 40,000 miles
• Other maintenance: $500-1,000/year

At 15,000 miles/year, budget $100-150/month.

4. Insurance ($100-200/month)

You’d pay this anyway, but commute distance affects rates. Longer commutes = higher premiums. Most people pay $100-200/month for decent coverage.

5. Hidden Costs ($50-100/month)

• Registration/taxes
• Parking (if you pay)
• Tolls
• Car washes
• Tickets/citations

The Real Monthly Total

Adding it up for our example (60-mile daily commute):

Cost	Monthly
Fuel	$165
Depreciation	$275
Maintenance	$125
Insurance	$140
Other	$50
Total	$755

That’s over $9,000/year—and we’re being conservative.

The Hourly Cost

Here’s where it gets interesting. Your commute also costs time.

60 miles round trip at average 35 mph with traffic = 1.7 hours/day 22 work days = 37 hours/month just commuting

If you value your time at $25/hour (a reasonable figure), that’s another $925/month in time cost.

True cost including time: $1,680/month

Comparing Job Offers

This is crucial when evaluating jobs:

Job A: $65,000 salary, 10-minute commute (5 miles) Job B: $70,000 salary, 45-minute commute (30 miles)

Monthly commute costs:

• Job A: ~$200/month = $2,400/year
• Job B: ~$600/month = $7,200/year

Difference: $4,800/year

Job B pays $5,000 more but costs $4,800 more to reach. Net benefit: $200/year.

That “better paying” job is almost break-even—before counting the extra time.

Ways to Reduce Commute Cost

Drive less:

• Work from home even 2 days/week cuts commute cost 40%
• Carpool to split fuel and reduce wear
• Combine trips (errands on commute route)

Drive cheaper:

• More fuel-efficient vehicle
• Proper maintenance (underinflated tires hurt MPG)
• Smoother driving (aggressive driving costs 15-30% more fuel)

Drive smarter:

• Move closer to work
• Change to off-peak hours if possible
• Use apps to find cheapest gas

The Remote Work Math

If remote work is an option, the math often supports it:

5 days in office: $755/month commute cost 3 days in office: $453/month (40% reduction) Fully remote: $0/month commute

Annual savings of fully remote vs. in-office: $9,060

That’s real money—equivalent to a $10,000-11,000 raise before taxes.

When Moving Makes Sense

At what point does moving closer to work make financial sense?

If your commute costs $755/month and rent closer to work costs $400/month more:

• Net savings: $355/month
• Plus time savings (30+ hours/month)
• Plus less wear on your car
• Plus better quality of life

Moving might actually save money while improving your life.

Your Commute, Your Numbers

Everyone’s situation is different. But everyone underestimates commute costs.

Before accepting a job, negotiating remote work, or choosing where to live—run the actual numbers. You might find that a closer job paying less, or a more expensive apartment, actually puts more money in your pocket.

The commute calculator doesn’t lie. Your “cheap” commute probably isn’t.