Commute Cost Calculator UK 2026

How much does the average UK worker spend on commuting in 2026?

The average UK worker spends between £2,600 and £3,500 per year on commuting costs, depending on transport mode and location. London commuters pay significantly more, with train users spending up to £5,100 annually.

Car commuters average £421 per month including fuel, parking, and daily expenses, whilst public transport users pay around £513 monthly. These figures increased substantially in 2026 following the 4.6% fare rise in March.

Many workers underestimate their true costs by not accounting for vehicle depreciation (15-20p per mile for cars), time value, and daily purchases like coffee and lunch, which add £2,000-£3,000 annually.

Is it cheaper to drive or take the train to work in the UK?

The answer depends on your specific route, distance, and circumstances. Generally, driving costs approximately 13-16p per mile for fuel alone, but you must add parking (£6-£15 daily in cities), insurance, depreciation, and maintenance.

For a 20-mile each-way commute, driving costs around £3.20 in fuel plus parking charges. Train fares vary dramatically by route, but average £15-£25 daily for longer commutes. Season tickets offer savings of 20-30% for regular travellers.

Research from 2026 shows that train commuting now costs more than driving on many routes when comparing direct expenses only. However, when you factor in car depreciation (15p per mile adds £6 daily for 40 miles), total cost of ownership, and the ability to work during train journeys, the calculation becomes more complex.

What are the hidden costs of commuting that people forget?

Hidden commuting costs add up quickly and often double your expected expenses:

• Time value: 200-250 hours annually spent travelling, worth £3,000-£6,000 at average wages
• Daily extras: Coffee (£3.50), breakfast, lunch (£8) add £2,400-£3,000 yearly
• Vehicle depreciation: 15-20p per mile reduces car value by £750-£2,000 annually
• Increased insurance: Higher mileage raises premiums by £50-£150 per year
• Maintenance: Additional services, tyres, and wear cost £300-£600 annually
• Parking fines: One ticket per year averages £40-£70
• Congestion charges: £15 daily in London (£3,750 annually for 5-day commuters)

Use our total cost calculator to see how these expenses affect your real take-home pay.

How do I calculate my cost per mile for driving to work?

Calculate your fuel cost per mile using this formula: (Fuel price per litre ÷ MPG) × 4.546 = cost per mile.

With January 2026 prices of £1.44 for petrol and a vehicle doing 45 MPG: (£1.44 ÷ 45) × 4.546 = £0.145 per mile (14.5p).

However, fuel is only part of the story. Add depreciation (5-8p per mile), maintenance (3-5p per mile), tyres (1-2p per mile), and insurance allocation (2-3p per mile). Your true cost per mile is closer to 25-35p for most vehicles.

HMRC's approved mileage rate for business travel is 45p per mile for the first 10,000 miles, then 25p per mile after that, which reflects these additional costs. For diesel cars at £1.52 per litre, the calculation is similar but typically 1-2p cheaper per mile due to better fuel economy.

How much can I save by working from home instead of commuting?

Remote workers save between £2,400 and £3,600 annually compared to full-time office commuters, with London-based workers saving even more. The savings come from multiple sources:

• Transport costs eliminated: £2,500-£5,000 per year
• No daily coffee and lunch purchases: £2,400-£3,000 per year
• Time saved: 200-250 hours that can be used productively
• Reduced work wardrobe expenses: £300-£800 per year
• Lower vehicle running costs and depreciation

However, home working increases electricity and heating bills by approximately £200-£400 annually. You can claim tax relief of £6 per week (£312 per year) for additional household costs if you work from home regularly.

For hybrid workers commuting 3 days instead of 5, typical savings are 40% of full commuting costs, or £1,000-£2,000 annually. Use our remote work savings calculator to see your specific savings potential.

What is the most cost-effective way to commute in the UK?

Cycling is by far the most cost-effective commute method for distances under 10 miles, costing just £150-£250 annually for maintenance and equipment. Through the Cycle to Work scheme, you can save up to 47% on bike purchases.

Walking is free but limited to very short distances (typically under 3 miles). For longer commutes, cost-effectiveness depends on distance and location:

• Under 5 miles: Cycling or e-bike (£200-£400 per year)
• 5-15 miles: Bus or car sharing (£1,200-£2,000 per year)
• 15-30 miles: Train season ticket or driving if parking is free (£2,500-£3,500 per year)
• Over 30 miles: Train season ticket often cheaper than driving when including all car costs

Car sharing with a colleague can reduce commuting costs by 50-75%. For train commuters, always buy annual season tickets if possible as they offer savings equivalent to paying for just 10 months of travel.

How have UK commuting costs changed in 2026?

UK commuting costs rose significantly in 2026, outpacing wage growth in most sectors. The March 2026 fare increase of 4.6% added approximately £223 annually for average train commuters. For popular routes like Reading to London, annual costs increased from £7,044 in 2024 to £7,362 in 2026.

Fuel prices stabilised after previous volatility, with petrol at £1.44 per litre and diesel at £1.52 per litre in January 2026. This represents a slight decrease from 2025 peaks but remains 35% higher than pre-2022 levels.

Parking charges increased by an average of 11% across UK cities, with some London boroughs raising rates by up to 20%. Bus fares rose 8% on average, though the £2 bus fare cap in some regions helps keep costs down.

Overall, commuting costs are rising approximately 3% faster than general inflation, making it increasingly important to factor transport expenses into salary negotiations and job decisions.

Can I claim tax relief on commuting costs?

Generally, you cannot claim tax relief for ordinary home-to-work travel, as HMRC considers this personal expenditure. However, several situations allow claims:

You CAN claim for:

• Travel to temporary workplaces (assignments under 24 months)
• Business mileage using your own vehicle (45p per mile first 10,000 miles, then 25p)
• Work-from-home allowance if you regularly work remotely (£6 per week, no receipts needed)
• Travel between multiple work locations in one day
• Professional subscriptions and trade union fees

You CANNOT claim for:

• Normal home-to-work commuting to your permanent workplace
• Parking at your regular workplace
• Congestion charges for normal commuting
• Season tickets or daily train fares for regular commutes

If you travel to multiple sites or your workplace is temporary, check HMRC's guidance or use our PAYE calculator to see potential relief. Self-employed individuals have different rules and may claim more travel expenses.

How do I compare commute costs between two job offers?

When comparing job offers, calculate your net take-home pay after commuting costs to see which offer is genuinely better. A higher salary with expensive commuting may leave you worse off financially and with less free time.

Follow these steps for accurate comparison:

1. Calculate annual commuting costs for each job using this calculator
2. Work out take-home pay using our take-home tax calculator
3. Subtract annual commuting costs from net salary
4. Calculate time spent commuting annually (hours per year)
5. Consider work-life balance and flexibility options

For example, Job A offers £45,000 with a 15-minute commute costing £1,200 yearly. Job B offers £48,000 with a 90-minute commute costing £5,500 yearly. After tax and commuting, Job A leaves you with £30,500 whilst Job B leaves £31,100, but Job B costs you an extra 375 hours per year in travel time.

Our job offer comparison tool automates this entire calculation, helping you make informed career decisions based on real financial impact.

Are electric vehicles cheaper for commuting than petrol cars?

Electric vehicles (EVs) are significantly cheaper to run per mile than petrol or diesel cars for most commuters, especially those who charge at home. In January 2026, home charging costs approximately £0.28 per kWh, giving an average cost of 7-9p per mile for efficient EVs.

Compare this to petrol cars at 13-16p per mile and diesel at 12-15p per mile. For a 20-mile each-way commute (40 miles daily), an EV costs £3.20 per day in electricity versus £5.60-£6.40 for petrol, saving £2.40-£3.20 daily or £570-£760 annually.

Additional EV benefits for commuters include:

• Lower company car tax (2% benefit-in-kind rate for EVs versus 25-37% for petrol/diesel)
• Exemption from congestion charges in most cities (saving £15 daily in London)
• Free or discounted parking in many locations
• Lower servicing and maintenance costs (no oil changes, fewer brake replacements)
• Qualifying for low-emission vehicle grants and incentives

However, EVs have higher purchase prices, though this gap is narrowing. Public charging is more expensive than home charging (35-80p per kWh), reducing savings for those unable to charge at home.