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How Much Does It Cost You to Go to Work?
Employees pay for commuting, lunch, child care and more. But just how much do they pay, and how does remote work change the picture?
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About 37 percent of U.S. jobs can be done entirely at home, according to a study by The National Bureau of Economic Research. One reason remote work is particularly attractive is that staying home can save employees money on commuting, child care and more. Employers also stand to gain from a shift toward remote work. Although companies must learn how to manage a remote workforce, remote and flexible work arrangements can significantly cut costs for employers.
Still, many employees continue to work in an office full time or in a hybrid setup. Heading to work each day may earn them a competitive salary, but there are costs for transportation, a suitable work wardrobe, breakfast, lunch, coffee and additional family-related expenses. These costs can add up significantly. Here’s a closer look at the costs associated with going to work compared with working from home, as well as what employees and employers should consider.
How much does it cost to go to work?
In-person work arrangements prompt employees to spend money daily, and these costs can accumulate significantly over time. The following breakdown covers typical expenses employees face when commuting to work:
- Driving: According to S. Census data, Americans who drive to work spend, on average, 25.6 minutes in transit each way. As of early 2024, cars are averaging approximately 24 miles per gallon, according to the U.S. Department of Energy. A 50-minute commute at 65 mph is a 54.17 round-trip commute per day; averaging 24 miles per gallon, that’s 2.26 gallons per day. So, if the current national average gas price is $3.544 per gallon, that’s $8.01 spent on driving each workday. With about 250 workdays per year, that’s over $2,000 per year.
- Public transportation: According to the 2023 Public Transportation Fact Book, the average national fare for public transit is $1.42 per ride — that’s $2.84 to get to and from work. With 250 workdays per year, that’s $710 annually. Of course, transit fares can vary dramatically by region and travel distance. For instance, the MTA says a monthly transit pass in New York costs $132 a month — that’s $1,584 a year.
- Breakfast: According to a Resume Builder survey, many full-time employees spend at least $15 when they buy breakfast, with 60 percent buying breakfast at least three times per week and 10 percent every day. That’s a minimum of $2,340 per year spent on breakfast.
- Lunch: The Resume Builder survey found that 71 percent of employees purchase lunch at least three times per week, 10 percent buy lunch five days a week and 24 percent buy lunch four days a week. About half of lunch-buying workers spend an average of $20 per lunch. As an employee, you could spend $3,120 to $5,200 on lunch every year.
- Coffee: It’s not unusual for professionals to pop into Starbucks or a nearby café for their morning coffee or afternoon pick-me-up. However, this habit can be costly. According to a OnePoll survey commissioned by Flavia, the average American spends about $16 per visit, buying an average of 2.5 drinks (including coffee, iced coffee, tea, flavored water and other beverages). If you make three visits a week to a café for beverages, that’s nearly $2,500 annually. This practice has additional costs, as well. The survey noted that the entire visit takes about 16 minutes round-trip, which adds up to losing an entire work week annually if you make three visits per year.
- Day care: According to the 2024 Cost of Care report, working families typically spend approximately $321 per week on day care for their children. That’s more than $16,500 annually.
- Pet care: According to a USA Today survey on the cost of dog ownership, the average American dog owner spends $376 per month on their pet, with Gen X dog owners spending an average of $590 per month. While working from home won’t eliminate all of your dog ownership expenses, it will cut down on expensive factors like doggie day care, dog walkers and pet sitting. It will also cut down on pet-related work stress; the survey showed that 51 percent of respondents changed jobs or asked for special work accommodations, including remote work, to better care for their dogs. Additionally, according to a survey by OnePoll on behalf of Vetster, 41 percent of dog owners would take a pay cut to have a pet-friendly work environment, such as a work-from-home setup.
- Apparel: The most recent available data shows that Americans spend an average of $1,500 per year on apparel, with women typically spending 40 percent more than men.
Employees who commute to and from your office may spend tens of thousands of dollars per year to accommodate their work outside the home. Understanding how much they spend to go to work can help them trim costs and make different lifestyle choices if necessary.
How much money do remote workers save?
The COVID-19 pandemic drastically increased the prevalence of remote work arrangements, and this continues to be a robust trend. In fact, according to the Pew Research Center, approximately 22 million U.S. employees worked entirely remotely in 2023 — about 14 percent of all employed adults.
Still, professionals may not realize how cost-effective remote work can be. According to an analysis from Global Workplace Analytics, working at home even half the time can save workers up to $6,000 annually, meaning full-time telecommuters can save up to $12,000 annually.
Lowered debt can be another financial benefit of working from home. According to a LendingTree study, shifting to remote work can help reduce an employee’s personal debt. And according to Bankrate, nearly 60 percent of millennial and Gen Z remote employees discovered that working from home improved their overall financial situation, with 54 percent of Gen Xers and 47 percent of boomers saying the same.
How much do employers save with remote work arrangements?
The cost savings don’t apply only to employees; employers also save money by reducing costs in various areas while maintaining engaged remote workers. According to Zippia, employers can save up to $11,000 every year per remote employee. That number factors in reduced absenteeism and increased productivity, since remote workers can be more productive.
A calculation from Lemon.io found similar cost savings for employers, emphasizing that a fully remote team eliminates the need for an office and the overhead rate that comes with it. This analysis found that business owners can save up to $10,600 per employee per year, which includes savings from not having to pay for rent, utilities, office snacks and furniture.
Even companies that keep their offices but switch to hybrid arrangements can reduce costs. That’s money you can pour back into your team.
Weighing the costs and benefits of work arrangements
Employees and employers can experience significant financial benefits from remote work. Employees save thousands annually on their commutes, meals and other work-related expenses, while employers cut overhead costs associated with maintaining physical office spaces. As the future of remote work remains promising and telecommuting continues to rise globally, understanding these financial dynamics will be pivotal for making informed decisions about work arrangements.
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