FreeCalculators

Gig Driver Net Hourly Calculator

Delivery apps quote gross — this shows the true net hourly after mileage, fuel, wear and tax set-asides: $12.80/hr gross often nets under $7.

Personal Finance · Reviewed by FreeCalculators Editorial · Updated 2026-08-23

How it works

A gig driver's true net hourly is what remains of platform payouts once vehicle costs and tax obligations are subtracted, then divided by every hour spent working — and it is routinely half the number the app flashes at end of shift. Three adjustments do the work. Vehicle costs arrive per mile, not per delivery: fuel plus maintenance and depreciation on 350 weekly miles at $0.35 combined removes about $122 before anything else. Taxes are nobody's withholding but yours; gig platforms send a 1099 with nothing held back, so a 20% set-aside on profits is the minimum honest reserve against self-employment tax and income tax alike. And hours must count the whole shift — waiting for offers is work, which is why engaged-time math flatters the platform. Run the defaults — $320 across twenty-five hours looks like $12.80 per hour — and the true figure lands near $6.16: $192.50 of pre-tax profit becomes $154 after the reserve. The number reframes decisions instantly: accepting lowball offers, dead-mile commutes between hotspots, or a second app's bonus chase all price differently against $6 than against $13. Drivers who track these inputs monthly consistently report the single biggest earnings gain comes not from driving faster but from cutting miles per dollar earned.

Formula


                Net hourly = (payouts − miles × (fuel + maintenance) ) × (1 − tax%) ÷ all hours online
              

Tips

  • Log real miles for two weeks including deadheads — estimates run low by a third.
  • The IRS standard mileage rate (70¢ for 2025) doubles as an all-in cost sanity check.
  • Set the tax reserve aside weekly in a separate account; April arrives regardless.
  • Decline offers below roughly $1.50 per mile — they lose money once costs are counted.
  • Track net hourly monthly; if it trends under local minimum wage, renegotiate your strategy.

Frequently asked questions

How much does DoorDash really pay per hour after gas?
With the default profile — $320 over 25 hours, 350 miles at $0.35 combined vehicle cost — gross is $12.80 but true net lands near $6.16 after expenses and a 20% tax reserve. Dense urban markets with short trips can beat this substantially; long-suburban routes fall well below it.
Can gig drivers deduct mileage from taxes?
Yes — drivers choose either the IRS standard mileage rate (70 cents for 2025) covering fuel, depreciation and maintenance, or actual-expense accounting with receipts. Miles must be logged contemporaneously; app screenshots of route summaries generally satisfy documentation. The deduction applies only to business miles, never commuting from home.
How much should delivery drivers set aside for taxes?
Twenty to thirty percent of net profit covers most part-timers' combined self-employment and income tax; full-time earners in high-tax states should lean toward the top of that range. Because platforms withhold nothing, quarterly estimated payments are required once annual liability exceeds about $1,000 to avoid penalties.
Is gig delivery worth it after vehicle costs?
Run your own numbers honestly: many drivers discover effective pay sits near local minimum wage once depreciation counts, making it worthwhile mainly for schedule freedom or as gap-filler income. The lever that matters most is miles per dollar — accepting dense, short-trip offers lifts net hourly more than any bonus chase.
Do waiting hours count when calculating gig pay?
They should. Platforms often advertise engaged-time rates excluding time waiting between offers, which inflates hourly figures by 20–40%. Dividing total payouts by every hour you were available to accept work gives the honest denominator — the one your rent check ultimately cares about.