True hourly rate calculator for gig drivers
The app shows earnings per active hour; it does not show the hour you waited for a ping or the 300 miles your car absorbed. Enter a week's earnings, tips, hours online, hours active, miles and your own cost per mile, and the calculator gives your true hourly rate on both online and active time, your net after vehicle cost, and net per mile. The figures are yours; nothing is uploaded.
How to use this calculator
- Enter the week's earnings from the app before tips, then tips separately.
- Enter hours online, from going online to going offline, and hours active, when you had a ride or order in progress. Both are in the app's weekly summary.
- Enter the miles you drove while online, including the drive to each pickup.
- Set your cost per mile. $0.70 is a reasonable starting point for a mid-size car; adjust it for your fuel price, mileage and vehicle.
- Add tolls, parking, phone mount or bags under other expenses.
- Read your true hourly on online hours, which is what you actually gave up to earn the money.
Online hours versus active hours
Apps report earnings per active hour, which counts only the time from accepting a ride to completing it. The time spent waiting, repositioning and driving to a pickup is online but unpaid. If you were online 25 hours and active 20, a quarter of your working time is invisible in the app's hourly figure. The true hourly rate on online hours is the one to compare with an hourly job.
What a mile costs
Every mile costs fuel, tyre and brake wear, oil changes, and depreciation of the car. The IRS standard mileage rate, which is designed to approximate the total cost of operating a car, was 70 cents a mile for 2025. Your own figure may be lower for an efficient older car or higher for a large vehicle or expensive fuel. Enter the number that fits your car; the result is only as good as that estimate.
Driving 300 miles a week at 70 cents is $210 of cost, which on $500 of earnings is more than 40 percent. That is why net per mile matters: orders that pay well per hour but send you far away can still lose money.
Independent contractor status and taxes
Most gig drivers are classified as independent contractors, so minimum wage and overtime rules under the Fair Labor Standards Act do not apply, and no tax is withheld. You generally owe self-employment tax on net earnings, and business mileage is deductible at the IRS standard rate or by actual expenses, which is a reason to log miles for every shift. Some cities and states have set minimum pay standards for app drivers; check your local rule.
Frequently asked questions
What is a good hourly rate for a gig driver?
Compare your true hourly on online hours, after vehicle cost, with what an hourly job pays in your area after considering that an employee gets overtime, no vehicle cost and tax withheld. If the true figure is below local minimum wage, the work is costing you money per hour.
Why does the app show a higher hourly rate than this calculator?
The app divides earnings by active hours only, ignores unpaid waiting time, and ignores your car's cost. This calculator counts all online hours and subtracts cost per mile.
What cost per mile should I use?
The IRS standard mileage rate was 70 cents a mile for 2025 and is a fair all-in estimate for an average car. Use a lower number for a cheap, efficient car and a higher one for a large or new vehicle. Fuel alone is usually 10 to 20 cents a mile.
Should I count the miles driving to a pickup?
Yes. Every mile driven while working costs the same, whether a passenger is in the car or not. Count all miles from going online to going offline.
Do gig drivers get overtime or minimum wage?
Generally not under federal law, because most are classified as independent contractors. Some cities and states, including New York City, Seattle and California under Proposition 22, set their own minimum pay rules for app-based drivers.
Can I deduct miles on my taxes?
Business miles are generally deductible for independent contractors, using the IRS standard mileage rate or actual expenses. Keep a log with dates, miles and purpose; this calculator does not store a mileage log.
Is my data uploaded?
No. The calculator saves your last entries in your browser on this device and sends nothing to a server.
Related calculators
This calculator produces estimates for your own records. It is not payroll, tax or legal advice. Overtime rules vary by state, industry and employer policy. Sources: U.S. Department of Labor, 29 CFR Parts 516, 778 and 785; state labor codes named above.