How Much Does Working from Home Actually Cost?
Working from home has its perks, no commute, more flexibility, and the ability to work in your pyjamas. But how much does it actually cost? While remote work can save you money on travel and office lunches, it also comes with expenses like increased energy bills, home office setups, and potential productivity trade-offs. Here’s a complete breakdown of what you need to consider when calculating the cost of working from home.
1. Home Office Setup: Initial Investment & Ongoing Costs
If you don’t already have a dedicated workspace, setting up a functional home office can be a significant upfront cost. Whether you need a simple desk and chair or a fully ergonomic setup, expenses can add up fast.
Essential Costs
Desk: £50 – £300 (from basic workstations to premium standing desks)
Chair: £80 – £400 (standard vs. high-end ergonomic chairs)
Monitor: £100 – £500 (HD vs. 4K displays, dual setups cost more)
Keyboard & Mouse: £30 – £150 (basic wired options vs. premium mechanical/wireless)
Lighting: £20 – £100 (desk lamps, ring lights, or ambient upgrades)
Additional Costs for Comfort & Productivity
Noise-Cancelling Headphones: £50 – £300 (useful for blocking out distractions at home)
Broadband Upgrades: £30 – £60/month (for seamless video calls and fast downloads)
Printer & Scanner: £100 – £300 (for paperwork-heavy roles)
Looking for a detailed cost breakdown? Read more: How Much Does It Cost to Set Up a Home Office?
2. Energy Costs: The Price of Powering Your Home Office
Your home office isn’t just taking up space, it’s using energy. Running a laptop, monitor, extra lighting, and central heating during the day can increase your utility bills, especially in the winter months.
How Much More Will You Pay?
Laptop & Monitor Power Usage: £5 – £15/month
Heating Costs in Winter: £30 – £100/month (if working in a cold room)
Lighting & Other Devices: £5 – £20/month
Want to know exactly how much your home office costs in electricity? Read more: How Much Electricity Does a Home Office Use?
3. Alternative Workspaces: Coffee Shops & Co-Working Spaces
While working from home is convenient, some people prefer a change of scenery to boost focus and break the monotony. But using coffee shops or co-working spaces can come with extra costs.
Coffee Shops: How Much Does It Cost to Work from One?
Average cost per visit: £3–£10 (if you buy coffee to justify staying for hours)
Pros: Social atmosphere, good coffee, sometimes free Wi-Fi
Cons: Noisy environment, reliance on charging ports, repeated costs
Co-Working Spaces: Is It Worth Paying for Membership?
Hot desking membership: £100 – £250/month
Private office space: £200 – £500+/month
Pros: Professional work environment, networking opportunities
Cons: Long-term cost commitment, commuting involved
Wondering whether to stick to home or go hybrid? Read more: Co-Working Spaces vs. Home Offices: Which Is More Cost-Effective? NO ARTICLE
4. Tax Relief & Work-from-Home Allowances
The good news? You may be able to claim tax relief on some of your work from home expenses. Many remote workers are unaware that they can get financial support for heating, electricity, and internet costs.
What Can You Claim?
Flat rate tax relief: £6 per week without receipts (saves you up to £125 per year!)
Additional claims: You may be able to claim part of your broadband and utility bills if you work from home regularly.
Employer contributions: Some companies offer allowances for home office setups, always check what’s available.
Not sure how to apply? Read more: How to Claim Work-from-Home Tax Relief in the UK
5. The Hidden Costs: Work-Life Balance & Mental Health
Beyond financial expenses, there are psychological costs to remote work. While eliminating commutes is a plus, many remote workers struggle with work-life balance and loneliness.
The Pros & Cons of Working from Home
✅ Pros:
✔ No travel costs or wasted commute time
✔ More flexibility in your day
✔ Better control over your work environment
❌ Cons:
✖ Difficulty ‘switching off’ from work
✖ Higher risk of burnout from overworking
✖ Less social interaction and networking
Want to explore the psychological impact of remote work? Read more: The Hidden Costs of Working from Home
So, Is Working from Home Worth the Cost?
While remote work saves money in some areas, it introduces new expenses that aren’t always obvious. The key is to budget wisely for energy bills, home office setups, and alternative workspaces to maximise your savings while staying productive.
👉 Want to optimise your remote working experience?
Check out our detailed guides on home office costs, energy expenses, and co-working spaces to keep costs low while staying comfortable and efficient.
