This is an estimate, not tax or financial advice. Pay, car costs and tax situations vary a lot between drivers and markets. Use a full week of real numbers for the best result.
Why app pay overstates what you earn
DoorDash, Uber, Lyft and Instacart show you gross payouts, and often pay per active hour. Three things come out before that money is really yours:
- Unpaid time. Waiting at restaurants and between orders counts as work because you can't do anything else. This calculator uses total hours online.
- Your car. Gas is the cost you see, but tires, oil, brakes and repairs arrive later. AAA's 2025 Your Driving Costs study puts maintenance, repairs and tires for a new car at 11.04¢ per mile, and depreciation at another 28.9¢ per mile at 15,000 miles a year.
- Taxes. Gig drivers are independent contractors, so nothing is withheld. You owe 15.3% self-employment tax on 92.35% of profit (about 14.1%) plus income tax.
The formula
car wear = miles × maintenance & wear per mile
tax set-aside = (payouts − miles × $0.76) × tax %
net per week = payouts − gas − car wear − tax set-aside
real hourly = net per week ÷ hours online
Tax is figured on payouts minus the IRS mileage deduction, because that deduction is what you'll actually claim. With the IRS-rate toggle on, the calculator swaps gas and wear for 76¢ per mile. That's the high-end view: it's meant to cover depreciation, insurance and registration too.
Example: $1,000 a week
A driver earns $1,000 in payouts and tips over 35 hours online, drives 400 miles in a 25 mpg car with gas at $3.20, uses 15¢ per mile for wear, sets aside 25% for tax and drives 50 weeks a year.
| Step | Amount |
|---|---|
| Gross hourly ($1,000 ÷ 35) | $28.57 |
| Earnings per mile ($1,000 ÷ 400) | $2.50 |
| Gas (400 ÷ 25 × $3.20) | $51.20 |
| Car wear (400 × $0.15) | $60.00 |
| Tax set-aside (($1,000 − $304) × 25%) | $174.00 |
| Net per week | $714.80 |
| Real hourly pay | $20.42 |
| Net per year (× 50 weeks) | $35,740.00 |
The app's $28.57 an hour is really $20.42. Using the IRS rate as the full car cost ($304 a week) drops it to $14.91, which is closer to the truth if you're wearing out a newer car you'd otherwise keep for years.
Choosing your per-mile wear cost
Older, paid-off car
10–15¢ per mile covers tires, oil, brakes and the occasional repair. Depreciation matters less once a car is worth a few thousand dollars, but high mileage still shortens its life.
Newer or financed car
Add depreciation: 25–40¢ per mile is realistic. Every mile you put on a car worth $25,000 knocks real money off its resale value.
Tips to raise your real hourly
- Judge orders per mile, not per trip. Count the drive to the pickup. Offers under about $1 per mile rarely pay once costs are included.
- Log every mile. At 76¢ per mile, 400 miles a week is over $15,000 a year of deductions. Use a mileage app from the moment you go online.
- Set aside tax on every payout. Move your set-aside to savings when you cash out, and make quarterly estimated payments if you'll owe $1,000 or more.
- Work the peaks. Fewer hours at lunch, dinner and weekend rushes often earn the same money with less waiting.
Frequently asked questions
How much do DoorDash and Uber drivers really make per hour?
It depends heavily on your market, but many drivers see $20 to $30 per hour on the app before costs. After gas, car wear and taxes, and counting time spent waiting between orders, real pay is often a third lower. Track one full week of payouts, online hours and miles and enter them above for your own number.
Should I count waiting time in my hours?
Yes. The apps often advertise pay per active hour, which leaves out the time you sit waiting for the next order. You can't do other work during that time, so use total hours logged in, from the moment you go online until you finish.
What does it really cost per mile to drive for gig apps?
Gas is usually 10 to 20 cents a mile. AAA's 2025 study puts maintenance, repairs and tires at about 11 cents a mile for a new car, and depreciation adds more the harder you drive. The 2026 IRS standard rate of 76 cents a mile from July 1 is a high-end estimate of the full cost, including depreciation, insurance and registration.
How much should gig drivers set aside for taxes?
Figure tax on your payouts minus the IRS mileage deduction, not on gross payouts. Self-employment tax is about 14.1% of that profit, plus federal and state income tax, so 20% to 30% of taxable profit is a common set-aside. The mileage deduction often cuts a driver's taxable income by a third or more.
Can I deduct gas and the mileage rate at the same time?
No. You choose either the standard mileage rate or your actual car expenses (gas, repairs, insurance, depreciation, business share of each). The mileage rate already includes gas. Most gig drivers come out ahead with the mileage rate because they drive a lot of miles in modest cars.
Rates and figures last checked September 2026.
This calculator gives estimates for planning. Check current rates and product labels before you buy, list or file.