The End of the Daily Commute
One big down-side of my job is that I live rather far away from work. Rising gas prices mean that getting myself to and from work every day becomes more expensive.
How expensive will gas have to get before it is no longer financially beneficial to drive to your job?
(weekly income) * (mpg) / (weekly miles driven to work)
In my case, when gas reaches $260/gallon I will be spending every penny I earn driving myself to and from work. What's your terminal gas price?
For bonus points I used the historical gas increase to determine when that would be. Depending on whether gas prices increase linearly or exponentially, I'll stop driving to work some time between June 3 2028 (exponential) or January 7 2539 (linear).
(I am not so confident about that exponential figure.)
Update: As crisper suggested you can also run the calculation in the other direction to determine the minimally efficient vehicle that you can commute to work in.
(weekly miles driven to work) * (current gas price) / (weekly income)
In my case, at present prices I need a vehicle that gets at least .92 miles per gallon.
How expensive will gas have to get before it is no longer financially beneficial to drive to your job?
(weekly income) * (mpg) / (weekly miles driven to work)
In my case, when gas reaches $260/gallon I will be spending every penny I earn driving myself to and from work. What's your terminal gas price?
For bonus points I used the historical gas increase to determine when that would be. Depending on whether gas prices increase linearly or exponentially, I'll stop driving to work some time between June 3 2028 (exponential) or January 7 2539 (linear).
(I am not so confident about that exponential figure.)
Update: As crisper suggested you can also run the calculation in the other direction to determine the minimally efficient vehicle that you can commute to work in.
(weekly miles driven to work) * (current gas price) / (weekly income)
In my case, at present prices I need a vehicle that gets at least .92 miles per gallon.