The bicycle is a beautiful thing. It's the single most energy efficient form of transportation ever invented. It can take you across town in a similar amount of time to a car (factoring in that the car will spend much of the trip stopped in traffic), and provide the exercise that most people are lacking in their daily lives. I ride mine every weekday in the summer - my target is commuting 5 days per week for 6 months, and 3 days per week for another 3 months - and I love it. But I've found that buying cycling gear has been getting expensive. So I've been wondering, is this form of commuting actually saving me money.

That biking is cheaper than driving is pretty much a foregone conclusion. Parking near my office would run about $160/month - underground parking in my building is over $200 - so over the six months that I bike every day I would have to spend almost $1000 before even looking at fuel, additional insurance requirements and wear and tear on my car. But that's not the realistic alternative - if I wasn't biking I would walk or take the bus. Walking is on the other end of the foregone conclusions list. It would cost less, so I am almost certainly paying for the convenience, enjoyment and extra 50 minutes per day I don't have to spend commuting. But busing is another matter, and the most worthwhile for actually looking at in detail.

So - a quick and dirty comparison. For the annual cost of owning the bike, I'm going to assume the $700 bike (+$200 in accessories - rack, panniers, air pump etc) that I ride (picture above) will last me 10 years, and the opportunity cost of tying up $900 is negligible - for an annual cost of $90 just to own the bike. Although I do my own maintenance at no cost (since I volunteer at the bike club for fun), to make this more useful for other people, I'll factor in the retail value of an annual tune-up and the expected new drive train every 3 years, plus 2 new inner tubes annually. Bus tickets 2 days per week for 13 weeks and bus passes for a further 3 months are also part of the cost of cycling.

I'm going to go out on a limb and say that non-cyclists will probably find the $22.42 per month more hassle than it's worth. But for anyone considering cycling, but balking at the cost of buying a good quality bike, this might just give you the justification to spend the money and get the bike. It's served me well in justifying my decision.