A disk drive is disclosed comprising a head actuated over a disk, wherein a maximum radial movement of the head is limited. A plurality of access commands are stored in a command queue, and an access latency is determined for each command in the command queue, wherein the access latency is based at least on a seek latency for the head and a rotational latency for the disk. The access latency for each access command is increased by an offset based at least on a seek length for each access command, wherein the offset compensates for the limited maximum radial movement of the head. An access command is selected from the command queue based on the increased access latencies, and the selected access command is executed.