Commute Cost

How It’s Calculated

Driving Cost = (Fuel + Parking + Maintenance/Wear per km) × Commute Days
Transit Cost = Pass/Fare Cost × Commute Days
Time Value = Commute Hours × Hourly Rate (opportunity cost)

Adding a dollar value for time is what makes a cheaper-but-longer commute comparable to a faster one.

Example

A 40-minute daily drive with $12 per day in gas and parking costs about $3,100 per year directly — plus roughly 173 hours per year in commute time that, valued at a $35 per hour opportunity cost, adds another $6,000 or more in time cost to the true price of that commute.

Should I value my commute time in dollars?

It’s a useful way to compare options fairly — a longer but cheaper commute isn’t automatically better once the value of that lost time is accounted for, especially against remote or hybrid alternatives.

Is public transit always cheaper than driving?

Usually in direct cost, yes, but not always in total time. The comparison should weigh both money and time cost, not just the fare versus fuel price.

Does this factor in vehicle depreciation?

Yes — per-kilometre wear and depreciation should be included in driving cost estimates, not just fuel and parking, since it’s a real ongoing cost of vehicle-based commuting.