Why is my true hourly rate so much lower than what the app shows?

Gig platforms show gross earnings before platform fees (5-25%), self-employment tax (15.3%), income taxes, and vehicle costs. A DoorDash driver earning $25/hour before costs might take home $12-15/hour after everything is accounted for.

What is self-employment tax and why is it so high?

Self-employment tax is 15.3% of your net gig income, covering Social Security and Medicare. Regular employees only pay half (7.65%) because employers cover the other half. As a gig worker, you pay both sides — though you can deduct half of it from your income taxes.

Is the IRS mileage rate accurate for my vehicle costs?

The IRS standard mileage rate ($0.70/mile in 2025) is a conservative average covering gas, depreciation, maintenance, and insurance. You can track actual expenses instead if they are higher, but mileage tracking is usually simpler and often comparable.

Should I pay quarterly estimated taxes as a gig worker?

Yes. If you expect to owe $1,000 or more in taxes for the year, the IRS requires quarterly estimated tax payments (due April, June, September, January). Failure to pay can result in underpayment penalties. Set aside 25-30% of your net earnings each pay period.

Real Income

Gig Economy Profitability Calculator

Find out what you actually take home after platform fees, vehicle costs, and taxes. See your true hourly rate — not the number the app shows you.

The Gig Income Illusion

Gig platforms advertise earnings that don't reflect what you actually keep. A DoorDash driver grossing $600/week might take home only $280–$330 after platform fees, vehicle costs, and taxes — that's 45–55 cents on every dollar.

This calculator shows your true hourly rate: what you actually pocket per hour worked, after all real costs. Use it to compare platforms, decide if gig work makes financial sense for your situation, or find the hours and platform combination that maximizes your real income.

Platform

Platform fee: 20% · Food delivery

Gross Weekly Earnings

What the app reports — before any deductions

Hours Per Week

Miles Driven Per Week

At $0.70/mi (IRS 2025) — covers gas, wear & depreciation

Your Income Tax Bracket

Your marginal rate on this extra income

True Hourly Rate

$12.27/hr

What you actually keep per hour — after platform fees, vehicle costs, SE tax, and income tax.

Apparent hourly

$30.00/hr

You keep

41¢ per $1

Annual projection

$12,758

Weekly Take-Home

$245

vs. $600 gross — $355 in total deductions

Annual Take-Home

$12,758

At 20 hrs/wk, 52 weeks per year

Where Your Money Goes

Gross weekly earnings$600

Platform fee20%

− $120

Vehicle costs150 mi × $0.70

− $105

Self-employment tax15.3% on 92.35%

− $53

Income tax (est.)22% bracket

− $77

True take-home$245

Tax Tip

Set aside 25–30% of your net earnings every pay period for taxes, and pay quarterly estimated taxes (due April, June, September, January) to avoid IRS penalties. If you drive, track mileage daily — it's your biggest deduction. Apps like Stride or MileIQ make it automatic.

Gig Economy Profitability Calculator

The Gig Income Illusion

Weekly Take-Home

Annual Take-Home

Where Your Money Goes

Tax Tip

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