Remote job or commute: what a commute really costs
A commute is a pay cut nobody writes into the offer. Driving costs money every day, and the hours are hours you aren't paid for. For a 40-mile round trip five days a week, the driving alone is worth about $7,100 a year. Count the time at a modest rate and an in-office job needs to pay about 20% more just to match the same job done from home.
1. What the driving costs
The calculator prices driving at the IRS standard mileage rate it uses for 2026 (76 cents a mile), which covers fuel, maintenance, insurance and depreciation, not just gas. For a 40-mile round trip, about 1 hour 15 minutes a day:
| Office days a week | Office days a year | Driving cost a year | Hours a year |
|---|---|---|---|
| 5 | 235 | $7,144 | 294 |
| 3 | 141 | $4,286 | 176 |
| 2 | 94 | $2,858 | 118 |
Commuting costs aren't tax-deductible, so they come out of after-tax pay.
2. What the time costs
294 hours is more than seven 40-hour weeks a year. What an hour is worth to you is personal; the calculator lets you set it. At $25 an hour, the five-day commute's time is worth $7,344 a year, on top of the driving.
3. The raise that would make it even
Take the same $100,000 job, done remotely or in the office. The in-office version would need to pay:
| Office days | Driving only | Driving plus time at $25 an hour |
|---|---|---|
| 5 a week | $109,676 | $119,622 |
| 3 a week | $105,805 | $111,773 |
| 2 a week | $103,870 | $107,849 |
The raise needed is larger than the commute cost itself, because the extra salary is taxed before you can spend it on the commute.
4. What else to count
- Transit, parking and tolls instead of, or on top of, mileage. Some employers offer pre-tax transit benefits.
- Lunches, clothes and childcare hours that an office day adds.
- What the office gives back: learning from colleagues, visibility, a clearer line between work and home. Many people value these, and they don't show up in the numbers.
- Return-to-office risk. A hybrid job today may become five days later. The calculator's stress test adds one more office day a week.
Try it with your numbers
The Job Offer Comparison Calculator opens with a remote job and the same job five days in the office. Enter your office days, round-trip miles, commute time and any other commuting costs, and set what an hour of your time is worth. It shows the cost of each offer's commute and the salary that would make them tie. See also the break-even salary. It runs in your browser and we don't store your numbers.
More guides for this tool
- How much more salary do you need to leave? The break-even salary
- How to compare two job offers: the total pay math recruiters skip
- Is a 401(k) match worth more than a higher salary?
- Reading an RSU offer: vesting, tax and what you forfeit if you leave
Run your own numbers
Job Offer Comparison Calculator
Salary is only part of it. Which offer is worth more after tax, vesting and the commute?
Open the tool →