How much does commuting cost per year?

A typical US car commute — 12 miles and 35 minutes each way, 5 days a week — costs about $4,000 a year in direct car costs at the IRS 70¢ rate, plus roughly 280 hours of time. Priced at $25 an hour, the true yearly bill is around $11,000.

What is the IRS mileage rate for 2026?

The IRS standard mileage rate is 70 cents per mile — an all-in estimate of fuel, maintenance, tires, insurance and depreciation per mile driven.

How much money does working from home save?

Each remote day removes two trips a week — typically $1,500–$4,000 a year per weekly office day once car costs and commute time are counted. Two remote days often equal a mid-four-figure raise.

Cost of the Commute Calculator — Money + Time, Per Year

Money and time, split

The yearly bill, line by line

What office days cost

The full yearly commute bill at every number of office days. The dot is your week now — every step left is one remote day. Hover to compare.

Ways to shrink it

What the average commute costs — reference table

Car commute, 5 office days a week, 48 working weeks, miles at the 2026 IRS rate of 70¢. Time at a relaxed 30 mph door-to-door average. Your own numbers go in the calculator above.

Each way	Miles per year	Money per year	Hours per year
5 miles · ~20 min	2,400	$1,680	~80
10 miles · ~40 min	4,800	$3,360	~160
15 miles · ~60 min	7,200	$5,040	~240
25 miles · ~100 min	12,000	$8,400	~400
35 miles · ~140 min	16,800	$11,760	~560

Price the hours at even $25 and the 25-mile commute is a $18,400-a-year habit — before parking and tolls. One remote day a week removes a fifth of that.

How we calculate

What is included

Money: for car commutes, every mile at the IRS standard rate of 70¢ (2026) — the honest all-in figure covering gas, maintenance, tires, insurance wear and depreciation — plus parking and tolls. For transit, your monthly spending. Time: door-to-door minutes both ways, every office day, across 48 working weeks, priced at the hourly value you set.

What is estimated or left out

A planning estimate. If you would keep the car anyway, your marginal cost per mile is lower than 70¢ (roughly 25–35¢ for gas and wear alone) — but if commuting is why you own a second car, 70¢ undercounts. The time price is yours to set: some people count commute time at half their rate because they listen to podcasts; some count it double because it is the worst part of the day.

The formula, in plain words

trips per year = office days × 48 weeks × 2 ways
money  = miles × 70¢ × trips + parking · or · transit × 12
time   = minutes × trips ÷ 60  →  hours × your hourly value
total  = money + time

Common questions

Why price the miles at 70 cents?: That is the IRS standard mileage rate for 2026 — their estimate of what a mile truly costs once gas, oil, tires, repairs and the car losing value are averaged. Gas alone feels like 15¢ a mile; the car disagrees.
Is counting my time as money fair?: It is the only way to compare options honestly. A $2,300 apartment 10 minutes from work can beat a $2,000 one an hour away once 200 yearly hours get any price at all. Time is the one input nobody refunds.
What is one remote day actually worth?: Check the chart: the gap between your current office days and one fewer is the yearly price of that day — commonly $1,500–$4,000 a year. It is a raise that requires one conversation, not a promotion.

The Cost of the Commute