Gig Economy Income Calculator

JJ Ben-Joseph headshotReviewed by: JJ Ben-Joseph

Understanding true gig economy earnings

Gig platforms often highlight attractive gross earnings (for example, “$20/hour”), but gross pay is not what ends up in your pocket. Your net earnings depend on platform commissions, operating expenses (fuel, depreciation, insurance, supplies), and taxes (especially self-employment tax). This calculator estimates your take-home income across time periods (hour/week/month/year) so you can compare gigs and set realistic goals.

How to use this calculator (inputs explained)

  • Hours per week: time you actively work. If you have significant unpaid waiting time, include it here to get a realistic hourly net.
  • Weeks per year: subtract vacation/sick time and any expected downtime.
  • Average gross earnings per hour: your earnings before platform fees and before operating expenses.
  • Tips & bonuses (%): entered as a percent of gross earnings. If your tips are already included in your “gross per hour,” set this to 0.
  • Platform commission/fee (%): entered as a percent of (gross + tips) in this calculator. If your platform charges fees differently, treat this as an effective blended rate.
  • Monthly expenses: recurring monthly costs you pay to do the work (fuel, depreciation/wear, insurance, phone, supplies, etc.).
  • Self-employment tax rate: commonly 15.3% in the U.S. on net earnings (Social Security + Medicare), subject to rules and caps.
  • Income tax rate: your rough combined federal/state/local effective rate. This is an estimate—use your own situation.

Core formulas (what the calculator is doing)

These steps show the flow from gross revenue to take-home pay. Percent inputs are converted to decimals in the math (e.g., 25% → 0.25).

  1. Annual hours = Hours per week × Weeks per year
  2. Base annual gross = Annual hours × Gross earnings per hour
  3. Annual tips = Base annual gross × Tips %
  4. Annual gross incl. tips = Base annual gross + Annual tips
  5. After platform fees = Annual gross incl. tips × (1 − Platform fee %)
  6. Annual operating expenses = (Gas + Depreciation + Insurance + Other) × 12
  7. Net before taxes = After platform fees − Annual operating expenses
  8. Estimated self-employment tax = Net before taxes × SE tax rate (if net > 0)
  9. Estimated income tax = Net before taxes × Income tax rate (if net > 0)
  10. Net after taxes (take-home) = Net before taxes − SE tax − Income tax

The same logic can be expressed compactly as:

Hyr = Hwk × Wyr Gyr = Hyr × ghr Tyr = Gyr × t Ryr = Gyr + Tyr × 1 − f Eyr = Emo × 12 Npre = Ryr − Eyr Ntakehome = Npre − Npre × s+i

Where t is tips rate, f is platform fee rate, s is self-employment tax rate, and i is income tax rate (applied only when net is positive).

Interpreting your results

  • Gross vs net: If net is far below gross, your biggest drivers are usually platform fees, unpaid time, and vehicle costs.
  • Net hourly pay: This is the most useful number for comparing gigs and deciding whether extra hours are worth it.
  • Before-tax vs after-tax: If you’re planning cash flow, “after-tax” is closer to spendable income; if you’re planning deductions and quarterly payments, “before-tax” helps you estimate what to set aside.

Worked example

Suppose you work 30 hours/week for 50 weeks/year at $18.50 gross/hour, earn 20% tips, pay 25% platform fees, and have monthly expenses of $400 fuel + $200 depreciation + $100 insurance + $50 other = $750/month. Assume 15.3% self-employment tax and 20% income tax.

  • Annual hours = 30 × 50 = 1,500
  • Base annual gross = 1,500 × $18.50 = $27,750
  • Annual tips = $27,750 × 0.20 = $5,550
  • Gross incl. tips = $33,300
  • After platform fees = $33,300 × (1 − 0.25) = $24,975
  • Annual expenses = $750 × 12 = $9,000
  • Net before taxes = $24,975 − $9,000 = $15,975
  • SE tax ≈ $15,975 × 0.153 = $2,444
  • Income tax ≈ $15,975 × 0.20 = $3,195
  • Net after taxes ≈ $15,975 − $2,444 − $3,195 = $10,336
  • Net hourly after taxes ≈ $10,336 ÷ 1,500 = $6.89/hour

This example illustrates why “$18.50/hour” advertised or reported gross can translate into a much lower true hourly take-home once fees, costs, and taxes are included.

Quick comparison: gross vs net (what changes each layer)

Layer What it represents What commonly drives it
Gross earnings Pay rate before fees/expenses Market demand, surge/peak pay, acceptance rate effects, order mix
After platform fees Revenue after commission/fees Platform pricing/commission, promos, effective fee differences by product
Net before taxes Profit after operating costs Miles driven, fuel price/MPG, maintenance, insurance, depreciation
Net after taxes Estimated take-home SE tax, income tax bracket/effective rate, deductions/credits

Assumptions & limitations

  • Fee basis: Platform fees are applied to (gross + tips) as a simplified “effective” fee. Real fee structures can differ by platform, region, and product.
  • Expenses are monthly averages: Costs like repairs are lumpy. A monthly budget smooths them, but your cash flow may vary.
  • Depreciation is estimated: Actual depreciation depends on vehicle value, miles, maintenance, and resale market.
  • No mileage-based modeling: This calculator does not estimate miles driven or apply the IRS standard mileage rate; it relies on the expenses you enter.
  • Taxes are simplified: Real taxes depend on deductions, credits, filing status, locality, and SE tax rules (including caps). Use this as a planning estimate, not tax advice.
  • Net can go negative: If expenses exceed revenue, taxes are treated as zero here, but real tax outcomes can differ (losses, carryovers, other income).

Calculate your actual net earnings from gig work after all expenses and fees

Gig Work Details
Different platforms have different fee structures
Total time spent working (not including waiting/slow periods)
Typical: 50 weeks if taking 2 weeks off
Earnings before platform fees, tips, and vehicle costs are deducted
Delivery: often 10-20%; rideshare: 10-25%; services: 15-30%
DoorDash: ~30%; Uber Eats: ~25-30%; Uber: ~20-25%; Lyft: ~20%; TaskRabbit: ~20%; Instacart: ~10-15%
Estimated monthly fuel cost at current gas prices
Estimated wear & tear on vehicle (typical: $150-300/month depending on car)
Extra cost for gig insurance riders or dedicated commercial insurance
Phone plan portion, maintenance, cleaning supplies, etc.
15.3% standard SE tax; varies based on income level and deductions
Combined federal + state income tax; depends on total household income

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