What is a "Target Income"? – This is the net profit you want to keep after taxes and expenses are paid.
How often should I calculate my expenses? – Since fuel prices and maintenance costs fluctuate, it is a good idea to update your inputs monthly.
Does this calculator include self-employment tax? – This tool helps you find your gross rate; however, we recommend setting aside 25-30% of your net earnings for taxes.
What is the 2026 mileage rate? – The standard business mileage rate for 2026 is 72.5 cents per mile.
Many new drivers calculate their earnings simply by subtracting their weekly gas receipts from their platform payouts. However, true independent contracting requires factoring in hidden vehicular overhead.
Vehicle Depreciation: Every mile driven adds wear and tear, permanently lowering the resale value of your vehicle. A standard car can lose significant equity over a year of full-time rideshare driving.
Self-Employment Tax Shielding: Because platform companies do not withhold taxes, calculating your net income allows you to set aside a precise percentage (typically 25-30% of your net profits) for quarterly estimated tax payments, ensuring you aren't penalized by the IRS.