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Side Hustle Earnings Calculator

A gig that pays $25 an hour rarely puts $25 an hour in your pocket. Platforms take a cut, the job has costs, and as a freelancer you pay both halves of Social Security and Medicare. Enter your own numbers, or start from one of the examples, and see what you keep.

How you are paid
Count all the time it takes, including driving, waiting and admin.
Fuel, supplies, software, a share of your phone bill.
15.3% is the full Social Security and Medicare rate. Income tax is extra.

You keep per month

$692

Per year: $8,301

Effective hourly rate
$15.96

Where a month's money goes

You earn
$1,083
Platform fees
−$217
Expenses
−$50
Self-employment tax (estimate)
−$125
You keep
$692

How we calculate

Earnings. Hourly: pay × hours a week. Per task: pay × tasks a week. A month is 52 ÷ 12 = 4.33 weeks.

What you keep. monthly earnings − platform fee − expenses = profit, then profit − (profit × self-employment tax %). Tax is never taken from a loss. Per year is 12 months.

Effective hourly rate. What you keep in a year ÷ (hours a week × 52).

The tax figure is an estimate. The IRS charges self-employment tax of 15.3% on 92.35% of profit (about 14.1% of profit), and only once you make $400 or more in a year. Income tax comes on top and depends on your other income, so set aside more than this. The examples are illustrations, not quotes.

Common questions

Do I have to pay tax on side hustle income?

Yes. Once you make $400 or more in profit in a year you owe self-employment tax, and the income also counts toward your income tax. Many people set aside 25–30% of profit to cover both.

What counts as an expense?

Costs you would not have without the side hustle: fuel and mileage for driving, supplies, software, a share of your phone or internet bill. Keep receipts; many are deductible.

Why is my effective hourly rate so much lower than my pay?

Fees, expenses and tax all come out of the same hours. Unpaid time such as waiting for orders or writing proposals lowers it further, so count it in your hours.

Where do the example numbers come from?

They are typical-looking figures to start from, labelled as examples. Your city, platform and hours will change them, so replace them with your own.

Read our guide: Best Side Hustles for 2026: 23 Ways to Make Extra Money

Not financial advice. This tool gives estimates from the numbers you enter, for information only. It is not financial, tax or legal advice. Rates, fees and prices change, so check with the provider, and talk to a qualified professional before you decide.