What is the Commute Cost?
Commuting cost is not just fuel. Running a car properly includes fuel, servicing, tyres, insurance, depreciation and parking — which in Indian cities works out to roughly ₹8–12 per km for a small car, several times the fuel-only figure.
Comparing that against a two-wheeler, cab or a transit pass often reveals a difference of ₹1–2 lakh a year.
Formula & worked example
Cost = Monthly km × cost per km (or fixed pass price)
Worked example: 15 km each way, 22 days a month = 660 km. By car at ₹9/km that is ₹5,940 a month (₹71,280 a year). A cab at ₹18/km costs ₹11,880 a month. A ₹1,200 transit pass costs ₹14,400 a year — a saving of over ₹1.2 lakh annually versus the cab.
How to use this commute cost calculator
- Enter your one-way distance; the calculator doubles it.
- Use an all-in cost per km for the car — ₹8–12 including depreciation, not ₹7 for fuel alone.
- Enter your city's cab rate per km.
- Add the monthly cost of a metro or bus pass for comparison.
Smart tips
- Fuel is typically only 50–60% of the true cost of driving. Insurance, servicing and depreciation make up the rest.
- Parking in metros can add ₹2,000–5,000 a month, and is often left out entirely.
- For commutes under 5 km, a two-wheeler or cycling usually beats every other option on both cost and time.
- Mixing modes often wins — transit for the long leg plus a short cab or scooter ride at each end.
Frequently asked questions
What is the real cost per km of running a car in India?
Roughly ₹8–12 per km for a small hatchback including fuel, servicing, tyres, insurance and depreciation. Fuel alone is only about ₹7.
Is a cab cheaper than owning a car?
For low usage, often yes. Below about 800–1,000 km a month, cabs frequently cost less than the total cost of ownership.
Should I include depreciation in commute cost?
Yes. A car losing ₹80,000 of value a year over 12,000 km adds nearly ₹7 per km — usually the single largest component.
How do I reduce commuting costs?
Carpool, shift to a two-wheeler for short distances, use monthly transit passes, or negotiate one or two work-from-home days a week.
Want the theory behind the numbers? Read our commute guides on the Money Blog.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 30 Sep 2026. How we check these numbers.