Net earnings after fuel, vehicle wear, and other costs

Why Delivery Gig Pay Looks Better Than It Is

Uber Eats, DoorDash, Instacart, and similar platforms advertise hourly earnings of 18-25/hour. That number is gross, before any driver costs. Real net earnings run 30-50% lower. Fuel alone eats 10-20% of gross for a typical urban driver. Vehicle wear (maintenance, repairs, depreciation, tyres) adds another 10-15 cents per mile on top of fuel. Insurance, phone data, occasional parking tickets, and time waiting for orders all cut into the take-home further. This calculator handles the direct-cost subtraction so you can see what actually reaches your account.

Vehicle Wear Per Mile Is the Hidden Cost

The the tax authority standard mileage rate for 2024 was 67 cents per mile — a reasonable benchmark for total vehicle cost (fuel, maintenance, depreciation, insurance) for a driver claiming business mileage. For delivery purposes, fuel is usually calculated separately, so the remaining vehicle wear is about 15-25 cents per mile. Newer vehicles run closer to 15 cents; older vehicles near replacement point can exceed 30 cents due to major repairs. The calculator takes wear per mile as an input so you can match your actual vehicle situation.

Fuel Cost Math

Fuel cost equals (miles driven / MPG) × fuel price per gallon. A driver covering 150 miles in a 25 MPG vehicle at 3.50/gallon uses 6 gallons and spends 21 on fuel. Electric vehicle drivers substitute cents-per-kWh × kWh consumption. Hybrid drivers average real-world MPG higher than EPA ratings in stop-and-go delivery conditions. Use your actual measured MPG from recent trips, not the sticker rating — urban delivery work usually produces 10-20% lower MPG than highway driving.

What Typical Numbers Look Like

A DoorDash driver earning 200 gross over 8 hours in a city, driving 120 miles total: fuel at 25 MPG × 3.50 = 16.80. Vehicle wear at 0.18/mile = 21.60. Other costs (phone, insurance allocation, snacks): 5. Net: 200 - 16.80 - 21.60 - 5 = 156.60. Net per hour: 19.58. Net per mile: 1.30. Compare with the platform's advertised 25/hour gross — real net is 22% lower. Still a reasonable side income, but the math is not what the marketing suggests.

The Self-Employment Tax Layer

Beyond the direct costs in this calculator, delivery drivers are typically classified as independent contractors (1099 workers). That triggers self-employment tax (15.3%, or equivalent social-insurance charge in other jurisdictions) on net profit. A driver netting 20,000 from delivery work pays an additional 15.3% = 3,060 in self-employment tax beyond regular income tax. This tool models operating profit only — use a side-hustle tax calculator alongside for a full take-home picture.

When Delivery Is Worth It

As supplemental income with a fuel-efficient vehicle you already own: positive net contribution. As a primary job with a gas-guzzling or older vehicle requiring major repairs: often break-even or negative when all costs are truly tracked. In dense urban areas with high order density: 20-40% higher per-hour earnings. In suburban sprawl with long drives between orders: 20-40% lower. Track your actual fuel, mileage, and earnings for 2 weeks to see what your real economics look like before committing to delivery as anything beyond occasional income.