Gig Worker True Hourly Rate Calculator
True Hourly Rate
Calculate real hourly rate including all unpaid time and costs
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Formula
True Hourly = (Gross − Expenses) × (1 − Tax%) ÷ (Active + Unpaid Hours)
Frequently Asked Questions
Why is my true hourly rate lower than advertised?
Gig platforms advertise active earnings per active hour. Your true rate drops when you include: waiting between gigs, driving to starting zones, app check-in time, and all expenses. A $20/hr DoorDash rate often works out to $10–$12/hr true rate.
What expenses should gig workers track?
Key deductible expenses: mileage (67.5¢/mile in 2024), phone bill (business %), hot bags/supplies, app subscriptions, parking, and tolls. Tracking these can reduce your taxable income by $3,000–$8,000/year.
How much does self-employment tax cost gig workers?
Self-employment tax is 15.3% on net earnings (12.4% Social Security + 2.9% Medicare). Unlike W-2 employees who pay 7.65%, gig workers pay both halves. On $40,000 net, SE tax alone is $6,120 before income tax.
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