How Much Do Gig Workers Really Make? A Full Breakdown

1/2/2025

Earnings Comparison

There is a huge difference between the earnings shown inside gig apps and what workers actually take home.
Most drivers only look at daily totals, but true profit depends on many factors beyond the app’s payout screen.


What This Breakdown Covers

  • Gross earnings vs. net earnings
  • Fuel cost, maintenance, depreciation, and hidden expenses
  • Tax obligations and self-employment deductions
  • Realistic hourly earnings across major platforms
  • How to calculate your true take-home profit

We also include example spreadsheets, averaging methods, and how tools like Gig simplify expense and vendor tracking.


Gross Earnings vs. Net Earnings

Your gross earnings include all payouts from gig platforms:

  • Base pay
  • Tips
  • Promotions and bonuses

But net earnings subtract your expenses.
This is the number that actually affects your life, bills, and goals.


Common Operating Expenses

Gig workers face several unavoidable costs:

  • Fuel — typically the largest expense
  • Maintenance — oil changes, tires, brakes, and repairs
  • Depreciation — long-term vehicle value loss
  • Insurance — higher costs for full-time drivers
  • Miscellaneous expenses — phone data, equipment, parking

Tracking these expenses is essential for understanding true profit.


Taxes and Self-Employment Deductions

Gig workers are considered self-employed, meaning:

  • You owe income tax
  • You owe self-employment tax (Social Security + Medicare)
  • You must track deductions yourself

Fortunately, tax deductions like mileage, supplies, and cell phone use can significantly reduce your tax burden.


Realistic Hourly Earnings Across Platforms

Many drivers overestimate their hourly earnings.
To calculate accurate income, track:

  • Total online hours
  • Total active delivery hours
  • Total pay received
  • Mileage and expenses

Your “real” hourly rate appears only when all these factors are combined.


How to Calculate True Take-Home Profit

A simple formula:

(Gross Earnings – Total Expenses – Taxes) ÷ Total Hours = True Hourly Profit

This number is the truest measure of your success as a gig worker.

Tools like Gig track:

  • Expense tracking
  • Vendor-by-vendor earnings
  • Weekly and monthly profitability summaries

With proper tracking, you can identify your most profitable apps — and eliminate the ones dragging down your income.


Understanding your real earnings is the foundation of long-term gig work success. Once you know your true profit, you can make smarter decisions about hours, apps, and strategy.