WFH vs Office Cost Calculator

Remote total costs (annual)

internet upgrade + equipment + utilities + coworking

$480 + $800 + $360 + $720

= $2,360

Home office costs are real — but many are partially deductible as business expenses (home office deduction, equipment depreciation).

Remote net compensation (annual)

remote gross − remote costs

$105,000 − $2,360

= $102,640

Commute cost (car, annual)

miles/day × 2 (round trip) × IRS rate × commute days

20 mi × 2 × $0.67/mi × 235 days

= $6,298

IRS standard mileage rate 2024: $0.67/mile. This covers fuel, maintenance, depreciation — not just gas.

Office other costs (annual)

wardrobe + lunches out + parking + relocation (amortized)

$1,200 + $2,184 + $0 + $0

= $3,384

Lunches: 3 days/wk × $14/meal × 52 weeks = $2,184/yr

Office total costs (annual)

commute + wardrobe + lunches + parking + relocation

$6,298 + $3,384

= $9,682

Office net compensation (annual)

office gross − office costs

$100,000 − $9,682

= $90,318

Net difference (remote vs office)

remote net − office net

$102,640 − $90,318

= +$12,322

Remote leaves more in your pocket despite the home-office costs.