Gig Worker Net Hourly Calculator
Stop confusing Gross Revenue with Take-Home Pay. Find out exactly what your time and car are worth.
The Golden Breakdown
If you gross $25/hr on the app, your true net hourly take-home is typically closer to $13 to $16/hr.
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Top 5 FAQs: Gig Work Economics
1. Why is "Net Hourly" lower than local minimum wage?
Gig drivers are independent contractors, meaning the app company (Uber, DoorDash, Lyft) is not required to guarantee local minimum wage. After funding your own gas, car maintenance, and self-employment taxes, your actual net margin can drop significantly depending on city traffic.
2. How is Net Profit calculated mathematically?
Net Profit = (Gross Earnings) - (Miles Driven x 0.725 IRS Rate) - (Remaining Profit x 0.153 SE Tax Rate). Divide the final result by the hours you were out of your house (not just active app hours) to find your Net Hourly.
3. Does taking $3 orders ever make mathematical sense?
Rarely. In a $3 order, you spend time picking up and dropping off. Even if it takes only 15 minutes and 2 miles round trip, the depreciation and gas (2 miles x 72.5¢ per mile (0.725) for 2026 ) wipes out half the earnings before factoring in taxes or your time.
4. Can I write off my car payment instead of mileage?
Usually you must choose between the Standard Mileage Deduction (the 72.5 cents/mile rate) OR the Actual Expense Method (gas receipts, oil, literal depreciation of purchase price). In 95% of gig-driving cases, the Standard Mileage Deduction yields a higher tax break.
5. Do I count time spent waiting for orders/rides?
Yes! The apps only show "Active Hours" (when you have a passenger/food), which inflates your hourly wage. If you left home at 5 PM and returned at 10 PM, your divisor is 5 hours, regardless of whether you spent 2 hours parked in a lot waiting for a ping.