HOW THE MATH WORKS
Every estimate, explained.
Our calculation is deliberately transparent. All dollars are U.S. dollars. Distance is round-trip miles, fuel is priced per U.S. gallon, and time is measured in hours.
1. Annual office days
Annual office days = average office days per week × commute weeks per year. For example, three office days a week for 48 weeks yields 144 days.
2. Incremental annual expenses
Gas = office days × (round-trip miles ÷ vehicle miles per gallon) × gasoline price per gallon.
Vehicle wear = office days × round-trip miles × your chosen maintenance/depreciation amount per mile.
Parking and tolls = office days × amount per office day. Extra meals = office days × (office meals minus at-home meals). Avoided at-home utilities = office days × amount saved by not working at home.
Total added cash cost = gas + wear + parking/tolls + extra meals − avoided home utilities. An all-in vehicle mileage rate already includes fuel: if you use one, set the separate gas price to $0 to avoid counting fuel twice. For electric vehicles, charging cost = office days × round-trip miles ÷ miles/kWh × electricity price/kWh; wear is calculated separately. Public transit uses round-trip fare per office day, and walking/biking uses optional per-day costs. Parking, meals and avoided home costs apply for all modes. Net added expense per office day is the total added cash cost divided by office days; for zero office days it is not defined.
3. Cash gain from the offer
Estimated after-tax raise = (new office salary − remote salary) × (1 − entered marginal tax rate). Annual extra cash = estimated after-tax raise − added cash cost.
Cash break-even gross office salary = remote salary + (added cash cost ÷ (1 − entered marginal tax rate)). In unusual scenarios where the mathematical result is below $0, the calculator labels it theoretical rather than treating it as a possible negative salary.
This simplified marginal-rate approach applies the entered rate only to the difference in salary. It is not an exact after-tax income calculation, and a tax bracket change can make it inaccurate. The default 24% is an illustrative placeholder, not a federal-tax-rate lookup. In the optional 2026 state-assisted mode, a state with no general wage income tax uses 0% state wage tax, and selected flat-rate states use the published statutory rate as an illustration. When both residence and work states do not tax ordinary employee wages, 0% state wage income tax is applied automatically—even across two different states. For graduated-rate states or other cross-state combinations, users must provide an estimated state marginal impact. The chosen federal/payroll component remains user-entered. State-specific income thresholds, exemptions, reciprocity, credits, local income taxes and payroll levies are not fully modeled. Source: Tax Foundation 2026 state rates. The optional sensitivity cards show what cash gain would be if the combined marginal rate were five percentage points higher or lower (clamped to 0–90%), without modeling actual brackets.
4. Time is not cash
Commute hours per year = office days × round-trip commute minutes ÷ 60. Your chosen time value = commute hours × the personal dollar amount you choose per hour. This is a decision weight, not a realized expense or a legal rate of pay.
Time-adjusted salary target = remote salary + (added cash cost + time value) ÷ (1 − entered marginal tax rate). Time-adjusted gain = annual extra cash − time value. The average monthly cash change shown in the result is annual extra cash divided by 12; it is not a payroll paycheck projection.
5. Assumptions and limitations
The tool compares a remote baseline to a proposed hybrid/office position with otherwise comparable working hours. It assumes the office salary applies all year, commute days are as entered, and the specified tax rate is constant on the difference. Bonuses, PTO, relocation, child care, benefits, retirement contributions, vehicle financing, changing tax schedules and the value of social interactions or career growth are not modeled.
Use your own actual costs wherever possible and test multiple assumptions, especially high and low time values. An office offer can still be preferable even if the cash comparison is negative.
Example check: 3 office days × 48 weeks = 144 trips. For 26 round-trip miles at 28 MPG and $3.60/gallon, annual fuel is about $481.37. This amount excludes parking, meals and vehicle wear.
Contact
Questions about the formulas or a calculation? Email raisometry.contact@gmail.com.