How much time, money, and taxes can you save each year by working from home?
Tired of wasting money on gas?
Tired of wasting time sitting in traffic?
Ever curious about how much money you can deduct in taxes if you had a home office?
There’s good news:
SkipTheDrive’s telecommuting calculator can calculate all of these savings for you
What Is More Appealing – A Raise Or Telecommuting?
The amount of money and time that drivers can save via telecommuting is astounding! SkipTheDrive’s Telecommuting Calculator calculates the amount of money employees could save by telecommuting as opposed to driving to the office on a daily basis. It also calculates the amount of time you could save per year. Remember, time is money! Curious as to how current telecommuters feel about salary versus work flexibility, SkipTheDrive conducted a survey in November 2014 to see if they preferred telecommuting over a 10% salary increase. Our survey results can be found here.
Suppose John Doe is making $80,000 per year while living in L.A. (commuting to and from work every day in a midsize car). A salary of $80,000 per year is approximately $38 per hour (given a 40 hour work week).
Let’s assume the following commute scenario:
- His round-trip mileage each day is 40
- His round-trip driving time is 90 minutes
- He drives a midsize car
- Gas is $3.50 per gallon
- No parking or toll costs
- No additional food and/or beverage expenses
- No daycare expenses
Based on these figures, John could save $1,456 in gas expenses, and could save 390 hours of driving if telecommuting full-time. If you factor in John’s hourly rate ($38) with regards to the amount of hours spent driving each year (390), that’s a total of $14,820 of ‘commute time.’ Adding the values of gas money and commute time will total $16,276.
In order to make a salary of $96,000, John would have to receive a salary increase of 20%. So, is a pay raise more appealing than telecommuting?