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How Commute Cost Is Calculated

How to calculate the true cost of commuting in the UK — fuel, train tickets, depreciation, time cost, and transport mode comparison.

Verified against GOV.UK - HMRC Advisory Fuel Rates on 28 Feb 2026 Updated 28 February 2026 4 min read
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Summary

The commute cost calculator estimates the total annual cost of travelling to work, including direct costs (fuel, tickets, parking) and indirect costs (vehicle wear, insurance proportion, time). It allows comparison between driving, public transport, cycling, and working from home to show the true financial impact of your commute choice.

How it works

Driving costs

Annual commute cost = (Distance x 2 x Working days x Fuel cost per mile) + Parking + Vehicle wear

Fuel cost per mile depends on your car’s efficiency:

  • Petrol car (40 mpg): approximately 18p/mile at current fuel prices
  • Diesel car (50 mpg): approximately 15p/mile
  • Electric car: approximately 7p/mile (home charging)

Vehicle wear and depreciation add approximately 10-15p/mile on top (AA estimate).

Train costs

Annual season tickets are typically cheaper than daily tickets:

  • Daily ticket x 230 working days = full cost
  • Annual season: usually equivalent to ~40 weeks of daily tickets

Full cost of driving

Beyond fuel, driving costs include:

  • Insurance: proportional to commute mileage
  • MOT and servicing: more frequent with higher mileage
  • Depreciation: faster with higher mileage (approximately 10-15p/mile)
  • Parking: £5-£30/day in many city centres
  • Congestion charges: £15/day in central London

Time cost

The calculator can optionally value your commute time at an hourly rate (e.g., your after-tax hourly pay) to show the true cost including lost time:

Time cost = Commute hours per day x Working days x Hourly rate

Worked example

Driving: 25 miles each way, petrol car (35 mpg), 230 days, £10/day parking

  1. Daily mileage: 50 miles
  2. Annual mileage: 11,500 miles
  3. Fuel cost: 11,500 x £0.20 = £2,300
  4. Parking: 230 x £10 = £2,300
  5. Vehicle wear (12p/mile): £1,380
  6. Total annual driving cost: £5,980
  7. Monthly: £498

Compare train: Annual season £4,500 + walking to station = £4,500

Savings from WFH 2 days/week: driving cost reduced by 40% = £2,392 saved

Inputs explained

  • Distance — one-way commute distance in miles
  • Working days per week — how many days you commute
  • Transport mode — car (petrol/diesel/electric), train, bus, cycling
  • Fuel efficiency — mpg or miles per kWh for electric
  • Parking cost — daily or monthly parking fee
  • Season ticket price — for public transport options

Outputs explained

  • Annual commute cost — total yearly expenditure
  • Cost per day — average daily cost of commuting
  • Mode comparison — side-by-side costs of different transport options
  • WFH savings — how much you save per day working from home
  • Impact on hourly rate — commute cost expressed as an effective pay reduction

Assumptions & limitations

  • Fuel prices fluctuate and the calculator uses current average pump prices.
  • Vehicle depreciation estimates are averages. Actual depreciation varies by car age, make, and model.
  • Does not account for health benefits of cycling or walking.
  • Train comparisons use peak-time season ticket prices. Off-peak or flexible tickets may be cheaper.
  • Tax relief is available for some work-related travel but not for ordinary commuting.

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Gov
Gov
DfT - National Travel Surveyaccessed 28 Feb 2026
commute-cost fuel train transport car-cost working-from-home