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Side-hustle hourly rate calculator

Quote $60 for a one-hour job and it feels like $60 an hour. It isn't. The drive, the quote, the invoice and the cleanup are hours too, and gas, supplies, card fees and self-employment tax come out before any of it is yours. Put in your own numbers and this shows what the work actually pays for every hour it takes. The starting values are only an example — replace every one of them.

How the math works

  • Revenue a month = what you charge per job × jobs a month.
  • Costs a month = supplies per job × jobs, plus miles per job × jobs × cost per mile, plus card or app fees (a percentage of revenue), plus your fixed monthly costs.
  • Profit before tax = revenue − costs. Hours a month = jobs × (hours on the job + hours off the job) — the off-the-job hours (driving, quoting, invoicing, cleanup) are the ones people forget.
  • Self-employment tax is estimated at 15.3% of 92.35% of profit — about 14.1% of profit. The IRS only charges it once your net self-employment earnings for the year reach $400; the calculator applies it from the first dollar.
  • Income tax is the bracket you enter × (profit − half the self-employment tax). It ignores deductions and credits, so treat it as a rough set-aside, not your tax bill. State and local taxes are not included.
  • True hourly rate = (profit − self-employment tax − income tax) ÷ hours a month. The “Hourly before tax” line is profit ÷ hours.
  • The default cost per mile is the IRS standard business mileage rate: 76¢ for July 1 – December 31, 2026 (72.5¢ for January–June 2026). That rate is meant to cover the whole cost of running the vehicle, gas included — if you use it, don't count gas again under supplies.

This is a planning estimate, not tax advice. For your actual bill, check the IRS pages linked under the calculator or ask a tax professional. See the disclaimer.

The ledgers behind it