Uber and DoorDash Driver Profit: How To Calculate Your Real Earnings
The earnings number in your Uber, DoorDash or Careem app is not your pay. Fuel, maintenance, tires, insurance and your car losing value all come out of it. This guide shows how to work out your real profit, your cost per mile or km, and your true hourly pay, with simple formulas and a worked example. For a quick result, use our free gig driver profit calculator.
Gross Earnings vs Real Profit
Gross earnings are what the app pays you. Real profit is what is left after every cost of earning it:
- Fuel: the most visible cost, but not the only one.
- Maintenance: oil changes, tires, brakes and repairs, which rise with every mile you drive.
- Depreciation: your car loses value for every mile, even if you never see the bill.
- Insurance and registration: often higher for rideshare and delivery use.
- Other costs: phone plan, parking, tolls and car washes.
The Formulas
- Fuel cost = (Distance / Miles per gallon) x Fuel price per gallon
- Fuel cost (metric) = Distance in km x L per 100 km / 100 x Price per litre
- Running cost = Distance x Other cost per mile or km
- Net profit = Earnings - Fuel - Running cost - Other expenses
- Net hourly pay = Net profit / Hours worked
Worked Example: An 8 Hour Shift
You earn 180 in 8 hours and drive 150 miles. Your car does 28 miles per gallon, fuel is 3.50 per gallon and other running costs are 0.10 per mile.
| Item | Amount |
|---|---|
| Earnings | 180.00 |
| Fuel (150 / 28 x 3.50) | 18.75 |
| Running costs (150 x 0.10) | 15.00 |
| Net profit | 146.25 |
| Net per hour | 18.28 |
| Net per mile | 0.98 |
Even in this good example, about 19% of earnings went on costs. With a thirstier car or longer empty drives between jobs, the share can be much higher.
How To Find Your Cost Per Mile Or Km
- Add up one month of fuel, maintenance, insurance, registration and loan or lease payments.
- Add an estimate for depreciation.
- Divide the total by the miles or km you drove that month.
The result is your real cost per mile, and it is usually much higher than fuel alone.
Tax Mileage Rates Are Not Your Real Cost
Many countries publish a standard mileage rate for tax deductions. It is a tax figure that changes yearly, not necessarily your actual cost. Use your own cost per mile to decide which trips are worth taking, and check your local tax rules for deductions.
How To Earn More Per Hour
- Work busy periods and avoid long empty drives between orders.
- Decline trips where distance is long and pay is low.
- Track every shift for a month to see which hours and areas are most profitable.
- Keep your car maintained so repairs do not wipe out your profit.
- Set money aside for income and self-employment taxes from every payout.
Frequently Asked Questions (FAQs)
How do I calculate profit as a gig driver?
Subtract fuel, running costs and other expenses from your total earnings, then divide by hours for net hourly pay.
What is a good cost per mile for a driver?
It varies by car and country. Calculate your own by dividing a month's total costs by the miles you drove.
Should I count depreciation?
Yes. Your car loses value with every mile, so including it gives a more honest profit figure.
Is the tax mileage rate my real cost?
No. It is a tax deduction rate. Use your own cost per mile for decisions.
Do tips count as earnings?
Yes, include tips in earnings when calculating net profit and net pay per hour.
Does the calculator include tax?
No. Self-employed drivers usually owe taxes, so keep part of your profit aside.