🛵 Gig Worker Pay Calculator

Why Your "Hourly Rate" Is a Lie

Gig apps love showing you gross earnings: "$800 this week!" But that number ignores everything you spent to earn it — gas, depreciation, insurance, and the unpaid minutes waiting for orders. Studies consistently find that after expenses, many rideshare and delivery drivers earn well under minimum wage in expensive cities. This calculator shows the number that matters: what actually stays in your pocket per hour.

The expenses most drivers forget

• Depreciation: every mile shaves value off your car. The IRS rate ($0.70/mile) exists because the real cost is roughly that high.
• Dead miles: driving to a pickup or repositioning between orders earns $0 but burns gas and miles.
• Waiting time: if you count only "active" hours, your rate looks great. Count all hours you're out, and it drops fast.
• Self-employment tax: as a 1099 worker you pay both halves of Social Security/Medicare — 15.3% on net earnings, with no employer match.
• No benefits: no PTO, no health insurance, no 401(k) match. A $20/hour gig wage is not a $20/hour job wage.

How to raise your true hourly wage

1. Track dead miles separately. Apps don't show them; your odometer does. Drivers who minimize repositioning often gain $2–4/hour.

2. Multi-app strategically. Running DoorDash + Uber Eats simultaneously cuts waiting time, the biggest silent killer.

3. Know your profitable hours. Lunch and dinner rushes pay surge; 2pm Tuesday doesn't. Work the peaks, skip the valleys.

4. Deduct everything. Mileage, phone bill portion, insulated bags, even car washes — track with an app like Stride and deduct at tax time.

FAQ

Should I use the IRS rate or just gas? Always the full IRS rate for a true picture. Gas is only ~25% of per-mile cost; depreciation and maintenance are the silent majority.

Does this apply to Instacart/Amazon Flex too? Yes — any gig where you drive. Shoppers who walk (no car) can set miles to 0.

What hourly wage should I target? After all expenses and self-employment tax, aim for at least your area's minimum wage equivalent — many experienced drivers target $20+/hour net in major metros.

Estimates only, not tax or financial advice. Tax rules vary — consult a tax professional for deductions.