What costs should I factor into my side hustle?

Vehicle costs (gas, wear, insurance), equipment/supplies, platform fees (Uber, DoorDash, Etsy, etc.), and self-employment tax (15.3%). Don't forget opportunity cost—what you could earn at your day job.

How do platform fees affect gig economy earnings?

Rideshare and delivery platforms typically take 15-30%. Etsy takes 6.5% + payment processing. Freelance platforms 10-20%. Factor these into your gross to get true net earnings.

What is opportunity cost?

Opportunity cost = hours worked × your day job hourly rate. If you earn $15/hr net from a side hustle but could make $25/hr at overtime, the side hustle costs you $10/hr in forgone income.

Is my side hustle worth it vs minimum wage?

Federal minimum wage is $7.25/hr. If your net hourly after expenses and taxes is below that, you may be better off with a part-time job. Consider flexibility and growth potential too.

How much should I set aside for taxes?

Set aside 25-30% for self-employment tax (15.3%) plus federal/state income tax. Pay quarterly estimated taxes if you expect to owe $1,000+ for the year.

Which side hustles have the best profit margins?

Freelance writing and tutoring: 60-80% margins. Affiliate marketing: variable, often 50%+. Rideshare/delivery: 20-40% after vehicle costs. Etsy/dropshipping: 10-30% depending on product.

5 more

RISINGCreator Economy ReportsMarch 2, 2026🌍 GLOBALCreator Economy

📦

Creator Economy: Boom or Bust

Did our AI summary help? Let us know.

The gig economy and side hustles are growing. But are they profitable after expenses, platform fees, and taxes? This calculator helps you compare net hourly to minimum wage and your day job.

Concept Fundamentals

15-30%

Platform Fees

Gig economy

$7.25

Min Wage

Federal

15.3%

SE Tax

Self-employment

Ready to run the numbers?

Why: Many side hustles look good until you factor in all costs.

How: Enter gross earnings, expenses, fees, and taxes. Get net hourly and opportunity cost.

Net hourly rate after all costsMonthly and annual profit

Run the calculator when you are ready.

Calculate Your Side Hustle ProfitabilityNet hourly, monthly profit, opportunity cost

Side Hustle Type

Hours/Week

Gross Weekly Earnings ($)

Vehicle Costs $/week

Equipment/Supplies $/mo

Platform Fees %

Self-Employment Tax %

Alternative Hourly (day job) $

NET HOURLY

$13

MONTHLY PROFIT

$838

OPPORTUNITY COST

$1,624/mo

VS MIN WAGE

above

Key Metrics (Weekly)

Where Your Money Goes

12-Month Profit Projection

Side Hustle Profitability

\text{\$}13/hr net — \text{\$}838/mo (above min wage)

Net hourly $13 after expenses and taxes. Monthly profit $838. Opportunity cost $1,624/mo. Above federal minimum wage.

For educational and informational purposes only. Verify with a qualified professional.

Key Takeaways

• Net weekly = gross - expenses - platform fees; after tax = net × (1 - tax%)
• Net hourly = after-tax weekly ÷ hours/week
• Opportunity cost = hours × your day job rate
• Compare net hourly to $7.25 (federal min wage) and your alternative rate

Typical Costs by Side Hustle

Type	Platform Fees	Vehicle/Equipment
Rideshare	20-30%	High
Food delivery	15-25%	High
Freelance	10-20%	Low
Etsy	~6.5%	Variable

Opportunity Cost

If you could work overtime at $25/hr for 15 hours/week, that\'s $375/week. If your side hustle nets $200/week, you\'re giving up $175 in potential earnings. Consider flexibility and growth potential.

Expert Tips

Track every expense—vehicle costs for gig work are often underestimated.

Freelance and tutoring side hustles often beat gig economy on net hourly after costs.

Disclaimer: Estimates for planning. Actual costs and taxes vary. Set aside 25-30% for taxes. Not financial advice.

Creator Economy: Boom or Bust

Key Metrics (Weekly)

Where Your Money Goes

12-Month Profit Projection

Side Hustle Profitability

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Key Takeaways

Typical Costs by Side Hustle

Opportunity Cost

Expert Tips

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