Source: https://clockwage44.com/tools/gig-net-hourly-rate-calculator/

ClockWage44 is a free hours and pay tracker app for iOS and Android: log shifts across every job and see take-home pay after federal tax, state tax, FICA, overtime and deductions.

Get the ClockWage44 app: [App Store](https://apps.apple.com/us/app/hours-tracker-time-pay/id6762208276?pt=120576754&ct=clockwage44.md&mt=8) · [Google Play](https://play.google.com/store/apps/details?id=com.ehmtech.clock&referrer=utm_source%3Dclockwage44.md)

# Gig Worker Net Hourly Rate Calculator

See what you really earn per hour after mileage, expenses, and self-employment tax. Enter your gross gig pay, hours, and miles for your true net hourly rate.

_Interactive tool: open [the web page](https://clockwage44.com/tools/gig-net-hourly-rate-calculator/) to use it. This Markdown copy has the text only._

The tax year sets the Social Security wage base ($184,500) and the starting mileage rate below.

Estimates only, not tax or legal advice. This tool computes self-employment tax only, not federal or state income tax. Consult a tax professional for your situation.

## Why your real gig hourly rate is lower than the app shows

Gig platforms advertise gross pay: the number before anything comes out. As a 1099 worker, though, your real wage is what is left after your car, your other work costs, and your taxes. Three things pull the headline down. Vehicle cost is the big one, since every mile driven wears out a car you paid for. Other expenses (phone, tolls, parking, supplies) chip away at it too. Then self-employment tax takes 15.3% of your net earnings, because you cover both the employee and employer halves of Social Security and Medicare that a W-2 job would split with you.

There is one more honesty check: count all your hours, including the time you sat waiting for the next order. A $25/hr headline built on paid-delivery time only can quietly become $15 to $18/hr once idle time and costs are in the math. That gap is what this calculator measures.

## How to calculate your net hourly rate (step by step)

The tool works through your four inputs in order. First, your mileage deduction is business miles multiplied by the IRS standard rate. Second, your net self-employment earnings are gross earnings minus that mileage deduction minus your other expenses, floored at zero. Third, self-employment tax is figured on 92.35% of those earnings (see the next section). Fourth, your take-home is gross earnings minus your other expenses minus the self-employment tax. Finally, take-home divided by hours worked is your true net hourly rate.

Notice what take-home does and does not subtract. It subtracts your other expenses (real cash you spent) and your tax (real money owed). It does not subtract the mileage deduction as cash. The mileage figure exists to lower your taxable earnings, not to represent a bill you paid, so subtracting it twice would understate your take-home. If you want to compare that resulting net rate against a salary, the [hourly to salary calculator](https://clockwage44.com/tools/hourly-to-salary-calculator/) and the [net-to-gross calculator](https://clockwage44.com/tools/net-to-gross-calculator/) pick up where this one leaves off.

## Mileage deductions and self-employment tax for gig workers

The IRS business standard mileage rate changed mid-2026: 72.5 cents per mile from January through June, then 76 cents per mile from July through December (2025 was 70 cents). Pick the rate that matches the period you are calculating. That rate covers gas plus maintenance, insurance, and depreciation rolled into one number, which is why it is a deduction rather than a receipt.

Self-employment tax uses figures from the current federal tax constants. You are taxed on 92.35% of your net earnings, and only once those net earnings reach $400 for the year. The rate is 15.3%: 12.4% for Social Security up to the wage base of $184,500 for 2026, plus 2.9% for Medicare with no cap. Because no one withholds this for you, set money aside every time you get paid and send quarterly estimated payments with Form 1040-ES. For a full breakdown of that tax alone, use the [self-employment tax calculator](https://clockwage44.com/tools/self-employment-tax-calculator/); to model the W-2 side of a mixed-income household, try the [take-home pay calculator](https://clockwage44.com/tools/take-home-pay-calculator/).

## Track every gig automatically with ClockWage44

Knowing your true net hourly rate helps most when you can watch it across every platform you run. ClockWage44's Hours Tracker lets you log shifts and gigs from different apps as separate jobs, mark each income stream as taxable, and see take-home to the cent on-device. That keeps your set-aside math sitting right next to the hours you actually worked, idle time included. [Download the app](https://clockwage44.com/#download) to turn a one-time estimate into a running picture of what you really earn.

## Frequently Asked Questions

Common questions about gig worker net hourly rate calculator

### What is my true net hourly rate as a gig worker?

It is your take-home pay after mileage, business expenses, and self-employment tax, divided by every hour you worked, including wait and idle time. Because a platform advertises gross pay before any of those costs, your true net hourly rate is usually well below the headline number.

### How much do Uber, Lyft, or DoorDash drivers really make per hour after expenses?

It varies by market and hours, but a $25/hr advertised rate often lands closer to $15 to $18/hr once you subtract vehicle costs, other expenses, and self-employment tax. Enter your own gross earnings, hours, and miles above to see your real number instead of an average.

### How does the IRS mileage deduction work for gig drivers?

You multiply your business miles by the IRS standard mileage rate to get a deduction that lowers your taxable self-employment earnings. For 2026 the business rate is 72.5 cents per mile from January through June and 76 cents per mile from July through December (2025 was 70 cents). This calculator uses that deduction to reduce the income your self-employment tax is figured on.

### Is the standard mileage rate the same as what I spend on gas?

No. The standard mileage rate is a tax deduction meant to cover gas plus wear, maintenance, insurance, and depreciation, not your literal fuel cost. That is why this tool uses mileage only to reduce taxable earnings and does not subtract it from your take-home as cash. Subtracting it as cash would double count your vehicle costs.

### Do gig workers have to pay self-employment tax?

Yes. Once your net self-employment earnings reach $400 for the year, you owe self-employment tax of 15.3% on 92.35% of those earnings. That 15.3% covers both halves of Social Security (12.4%, up to the wage base) and Medicare (2.9%, with no cap), since there is no employer to split it with.

### How much should I set aside for taxes as a 1099 gig worker?

Set aside self-employment tax plus estimated federal and state income tax. Many gig workers reserve roughly 25% to 30% of net profit and pay quarterly with Form 1040-ES. This tool computes the self-employment tax slice precisely; add income tax for the full picture. For a deeper look, see the [self-employment tax calculator](https://clockwage44.com/tools/self-employment-tax-calculator/).

### Should I use the standard mileage rate or track actual vehicle expenses?

You can use one method or the other, not both, for the same vehicle in the same year. The standard mileage rate is simpler and needs only a mile count. The actual expense method (gas, repairs, insurance, depreciation) can produce a larger deduction for costly vehicles, but there are rules about switching methods later. This tool uses the standard mileage rate.

### What expenses can gig workers deduct besides mileage?

Common deductions include the business share of your phone and data, tolls, parking, hot bags and delivery supplies, and platform or service fees. Put those into the other business expenses field. Keep records, and only deduct the portion that is genuinely for work.

## Related Tools

- [Back Pay Calculator](https://clockwage44.com/tools/back-pay-calculator/): Add up unpaid hours, missed overtime, and rate shortfalls across pay periods to see the gross back pay you are owed and your estimated take-home.
- [Final Paycheck Calculator](https://clockwage44.com/tools/final-paycheck-calculator/): Add up unpaid hours, overtime, and unused PTO to see the gross final pay and estimated take-home you're owed when you quit or get let go.
- [First Paycheck Calculator](https://clockwage44.com/tools/first-paycheck-calculator/): Starting a new job? See when your first paycheck lands, how many hours it covers, and its take-home after 2026 withholding, next to your first full check.
- [Freelance Hourly Rate Calculator](https://clockwage44.com/tools/freelance-hourly-rate-calculator/): Work backward from the take-home pay you want to the hourly rate you must bill, covering self-employment tax, income tax, expenses, and non-billable time.