A commute is often one of the biggest costs in a budget that never appears as one line. Adding it up per year makes it visible.
Car commute example
30 miles round trip, 230 workdays = 6,900 miles a year.
- Fuel: 6,900 ÷ 30 mpg × $3.40 = about $780.
- Wear, tyres, maintenance at about 10 cents a mile: $690.
- Extra depreciation from the added miles: often 10 to 20 cents a mile, say $1,000.
- Parking: $8 a day × 230 = $1,840 (if you pay for it).
Total: roughly $2,500 to $4,300 a year, depending on parking.
Transit example
A monthly pass at $100 = $1,200 a year. Some employers subsidise passes or allow paying with pre-tax money, which lowers the real cost further.
Time is a cost too
45 minutes each way is about 345 hours a year. Dividing your take-home pay by hours including the commute gives your "real" hourly wage, and it is often 15% to 25% lower than the headline figure.
Quick ways to cut it
- Ask about remote or hybrid days: two days a week at home removes about 40% of the cost.
- Check pre-tax commuter benefits.
- Compare parking options, monthly permits are often far cheaper than daily rates.
- If you are choosing between two homes, add the yearly commute cost to the rent of each.
Free tools
- Gas cost calculator: https://smartbudgetsheets.surge.sh/calculators/gas-cost-calculator/?utm_source=mataroa
- Car cost calculator: https://smartbudgetsheets.surge.sh/calculators/car-cost-calculator/?utm_source=mataroa
- Hourly to salary calculator: https://smartbudgetsheets.surge.sh/calculators/hourly-to-salary-calculator/?utm_source=mataroa
- Debt Payoff Planner, up to 8 debts (Payhip): https://payhip.com/b/PtBLU?utm_source=mataroa
- 42 free budget templates, pay what you want ($0 is fine): https://smartbudgetsheet.gumroad.com/l/ngpkrb?utm_source=mataroa
General information, not financial advice. Figures are rounded examples.