How this calculator works
Gross = rate × weekly hours × weeks. Net = gross − tax − annual costs. Effective hourly = net ÷ hours actually worked, which is the number to compare against your day job.
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Side Hustle Calculator — Real Net Income
Is that side gig worth your evenings? Enter the rate you'd earn, hours per week, working weeks and costs — see the true net and effective hourly.
Scenario examples (2026 rates)
| Hourly rate or earnings ($) | Gross per year | Net after tax & costs |
|---|---|---|
| 17.5 | $6,720 | $4,440 |
| 26.25 | $10,080 | $6,960 |
| 35 | $13,440 | $9,480 |
| 52.5 | $20,160 | $14,520 |
| 70 | $26,880 | $19,560 |
Every number above is computed by the same in-browser engine as the calculator — nothing is hardcoded.
The Effective Hourly Rate Is the Only Honest Number
Every side hustle advertises a rate, and almost none of them is the rate you keep. A delivery app quoting $25 per hour is describing gross earnings before mileage, vehicle wear, insurance and the unpaid time spent waiting between orders, which commonly lands drivers at $12 to $17 net. Freelance gigs carry ramp time, proposals and invoices that never get billed. The effective hourly figure this calculator produces, net income divided by all hours the hustle actually consumes, is the only number that deserves comparison with your day job. Take your after-tax salary, divide by the hours you truly work, and put the two side by side. Hustles below your day-job hourly rate can still make sense for cash flow or optionality, but you should choose them knowingly rather than being dazzled by a headline rate that evaporates on contact with gas prices and self-employment tax.
What the IRS Expects From Side Income in 2026
Once net side earnings reach $400 in a year, self-employment tax applies on top of ordinary income tax, and the income is reported on Schedule C whether or not anyone sends you a form. Platforms issue 1099-NEC at $600 of payments and 1099-K for card and app transactions at lower thresholds, so the IRS already sees the gross; your job is reporting it and subtracting legitimate expenses. Income tax accrues as you earn, which is why quarterly estimates exist, underpayment penalties start small but compound with indifference. The practical setup takes an afternoon: a separate checking account and debit card for the hustle, a mileage-tracking app, a folder for receipts, and a standing transfer of 25 to 30 percent of every payment into a tax savings account. Do that and April becomes arithmetic instead of archaeology.
Choosing a Hustle You Can Keep for Twelve Months
Side hustles fall into three families with very different economics. Time-for-money gigs, delivery, rideshare, task apps, start paying this week but cap out fast and degrade with vehicle wear. Skill freelancing, writing, design, development, bookkeeping, pays $30 to $100-plus per hour after a ramp of one to three months to land first clients. Asset and audience plays, digital products, niche sites, rentals, earn little for a year and can outscale everything later. Match the family to your real constraints: five hours a week suits freelancing, fifteen enables assets, and gigs fit anyone who needs cash in fourteen days. Before committing, read your employment agreement, moonlighting and intellectual property clauses occasionally reach into side work, especially if it competes with your employer. The calculator answers the final question honestly: at your rate, hours and costs, is this worth your evenings?
FAQ
How much tax on side income?
US side income is taxed at your marginal rate + potentially 15.3% SE tax if net earnings exceed $400. Plan for 25–30%.
What side hustles pay the best per hour?
Freelance skills (writing, design, dev, bookkeeping) top $30–100/hr; gig apps (delivery, rideshare) typically land $10–20/hr net after vehicle costs.
Do I need an LLC for my side hustle?
No. A sole proprietorship files by default on Schedule C with zero setup cost. An LLC adds state filing fees, typically $50 to $500 per year and up to $800 franchise tax in California, plus paperwork. It buys liability separation and a business bank account under a brand name, which matters if your hustle carries real risk, like driving, physical services or client property. It does not, by itself, save a single dollar of tax.
When are quarterly estimated taxes due for side income?
For tax year 2026 the federal due dates are April 15, June 15 and September 15 of 2026, and January 15, 2027. You must pay estimates if you expect to owe $1,000 or more after withholding. The easier alternative for people with a W-2 day job: raise your W-4 withholding at work to cover the side income, and skip the vouchers entirely.
What expenses can I actually deduct?
Ordinary and necessary costs of the hustle: mileage at the IRS standard rate, currently around 70 cents per mile, or actual vehicle costs instead; a home office if used exclusively and regularly; supplies, software subscriptions, platform fees, and a business percentage of phone and internet. Log mileage and receipts contemporaneously, an app in your pocket, because reconstructed records routinely fail in audits and lost deductions cost more than the software.