Gig Worker Real Hourly Wage Calculator (Uber, DoorDash)

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Gig Hourly Wage

Real take-home per hour

Gross earnings (this week)

Hours worked

hrs

Miles driven

Other expenses ⓘ

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Enter your week to see your real wage

How the Gig Wage Calculator Works

Enter your gross earnings, hours and miles for a typical week.
We subtract the IRS mileage cost (70¢/mile), your expenses, and a self-employment tax set-aside.
See your real hourly wage vs the gross-per-hour the app shows.

What Do Gig Drivers Really Earn Per Hour?

Rideshare and delivery apps advertise gross earnings, but your car does a lot of unpaid work. This calculator subtracts the real costs: the IRS standard mileage rate (about 70¢/mile) — which covers gas, maintenance, insurance and depreciation — plus your other expenses and a self-employment tax set-aside (15.3% of net profit). What's left, divided by hours, is your true hourly wage.

Drivers are often surprised: a $900 week over 40 hours looks like $22.50/hr, but after 500 miles of driving and SE tax it can fall well below $15. Tracking your miles is also valuable at tax time — the mileage deduction usually beats deducting actual costs. Estimate only; not tax advice.

Formula & Logic

A gig or freelance rate is not comparable to an employee wage until three adjustments are made. Self-employment tax adds 15.3% on 92.35% of net earnings, roughly double the employee share, because you pay both halves. Unbillable time — admin, invoicing, marketing, finding the next client — commonly consumes 20–40% of working hours and earns nothing. And there is no paid leave, no employer retirement match and no subsidised health insurance. The realistic conversion is that a freelance rate must be roughly 1.4–1.6 times an employee hourly rate to deliver equivalent value.

Gross = Billable rate × Billable hoursSE tax = Gross × 92.35% × 15.3%Effective hourly = (Gross − SE tax − income tax − expenses) ÷ TOTAL hours workedEmployee-equivalent rate ≈ freelance rate ÷ 1.4 to 1.6

where:

billable hours: what you can actually invoice, typically 60–80% of hours worked
SE tax: 15.3% on 92.35% of net — both halves of FICA
total hours: the honest denominator, including unbillable work

Assumptions: Half of self-employment tax is deductible above the line, which softens the burden slightly. Health insurance premiums are deductible for the self-employed, and a solo 401(k) allows substantial retirement contributions.

Step-by-Step Example: $65 an Hour, 1,200 Billable Hours

Convert a freelance rate into a genuine effective hourly wage.

Rate$65/hour
Billable hours1,200/year
Total hours worked2,080
Federal rate22%

Gross revenue: $65 × 1,200 = $78,000.
SE tax base: $78,000 × 92.35% = $72,033.
SE tax: $72,033 × 15.3% = $11,021.
Deduct half of SE tax and the standard deduction: taxable ≈ $57,490.
Federal income tax: $7,562.
Net: $78,000 − $11,021 − $7,562 = $59,417, over 2,080 actual hours = $28.57/hour.

Result$65/hour bills out at about $28.57 of genuine effective hourly pay

The 56% gap comes from three places: 880 unbillable hours, the employer half of FICA, and no benefits. To match a $45/hour employee package including benefits, the freelance rate would need to be closer to $95 — which is why underpricing is the most common freelance mistake.

Gig Wage FAQ

Why is my real wage so much lower than the app shows? ▾

Apps show gross pay before your car's costs. Gas, maintenance, insurance and depreciation (captured by the ~70¢/mile IRS rate) plus self-employment tax can eat 30–50% of gross.

Should I track mileage? ▾

Absolutely. At ~70¢/mile, the standard mileage deduction usually saves more tax than deducting actual expenses — and it directly lowers your taxable profit.

Do I owe self-employment tax as a driver? ▾

Yes — gig drivers are independent contractors, so net profit over $400 owes 15.3% self-employment tax plus income tax. Set money aside each week.