How to use this calculator
Start by selecting your side hustle type or entering a custom name. Enter your monthly gross revenue (before any deductions), the hours you spend each week, and all of your monthly expenses. Choose your income tax bracket to get a complete picture of what you actually take home.
The calculator shows your net profit, true hourly rate, and a W2 equivalent comparison so you can see exactly what a traditional job would need to pay to match your side hustle earnings.
Why your true hourly rate matters
Most gig economy apps show you a gross earnings number that looks impressive. But that number does not account for gas, vehicle wear, supplies, self employment tax, or income tax. After all those costs, many side hustlers discover they are earning significantly less than they thought.
Self employment tax alone takes 15.3% of your net earnings (on 92.35% of net income). That is the combined Social Security and Medicare tax that W2 employers split with their employees. As a gig worker, you pay both halves yourself.
Frequently asked questions
Do I have to pay self employment tax on side hustle income?
Yes. If your net self employment income is $400 or more per year, you owe SE tax of 15.3% on 92.35% of your net earnings. This covers Social Security (12.4%) and Medicare (2.9%). This is on top of regular income tax.
What expenses can I deduct from my side hustle income?
Common deductions include vehicle mileage (70 cents per mile for 2025), phone and data plans (business percentage), supplies, software subscriptions, marketing costs, and home office expenses. Keep detailed records and receipts for everything you deduct.
How do I calculate my true hourly rate?
Take gross revenue, subtract all expenses, then subtract estimated self employment tax and income tax. Divide by total hours worked including drive time, prep, and admin tasks. This true hourly rate is often 40 to 60 percent lower than the gross figure your app shows.
When is a side hustle not worth it financially?
Consider whether your true hourly rate falls below what you could earn in a W2 job, or below minimum wage. Factor in vehicle depreciation, the value of your personal time, and whether the schedule flexibility justifies a lower hourly rate.