| Deadhead Ratio | Total Miles | Net Per Mile | Weekly Net | Grade |
|---|
- Gig Worker Mileage Profit Calculator 2026 - DoorDash & Uber Real Net Income
- How to Calculate Profit Per Mile for Gig Work
- On-App Miles vs Deadhead Miles - What Apps Do Not Show
- IRS Mileage Rate 2026 - The Gig Worker's Biggest Deduction
- DoorDash vs Uber vs Lyft - Net Income Comparison
- What Is a Good Profit Per Mile Benchmark
- Self-Employment Tax for Gig Workers - What You Owe
- How to Track Mileage Accurately for Taxes and Profit
- Common Mileage Mistakes That Cost Gig Workers Thousands
- Frequently Asked Questions (FAQs)
Gig Worker Mileage Profit Calculator 2026 - DoorDash & Uber Real Net Income
DoorDash and Uber apps show you one number: gross earnings. But the number that actually matters is profit per mile. That is the only figure that tells you whether gig work is worth your time and vehicle.
The gig worker mileage profit calculator above shows it in seconds. For a driver earning $750 per week with 280 on-app miles and 140 deadhead miles, the net profit per mile is roughly $0.64 after IRS mileage costs, extras, and taxes. The gross per mile was $1.79.
That gap — $1.15 per mile — is what separates a profitable gig week from a slow decline in your car's value. Most drivers never see it, because the app never shows it.
Net profit per mile = (Gross earnings minus extra expenses minus taxes) / total miles driven. Total miles include both on-app miles and deadhead miles. Most drivers only count the on-app portion, which overstates their real profit per mile by 30% to 40%.
This guide breaks down every input, explains why deadhead miles are the number one profit killer, and gives you benchmark grades to see where your own numbers stand.
How to Calculate Profit Per Mile for Gig Work
Three numbers drive the entire calculation. The formula is simple, but the reality behind each input is what matters.
Vehicle Cost = Total Miles x IRS Mileage Rate
Net Before Tax = Gross - Vehicle Cost - Extra Expenses
Net Profit Per Mile = Net After Tax / Total Miles
Walk through the default scenario. A driver earns $750 gross, drives 280 on-app miles and 140 deadhead miles (420 total), has $35 in extras, and uses the 2025 IRS rate of $0.70 per mile.
- Vehicle cost: 420 x $0.70 = $294
- Net before tax: $750 - $294 - $35 = $421
- Self-employment tax: $421 x 92.35% x 15.3% = $59
- Income tax (12% effective): approximately $43
- Real take-home: $421 - $59 - $43 = $319
- Net per mile: $319 / 420 = $0.76 per mile
- Net per hour: $319 / 30 = $10.63 per hour
Compare that to the gross per mile: $750 / 420 = $1.79. The app implies you earned nearly $1.80 per mile. Reality is $0.76. That is a 58% gap.
On-App Miles vs Deadhead Miles - What Apps Do Not Show
DoorDash and Uber only count miles during an active trip. Those are the "on-app" miles. But you drive many more miles than that every shift.
Deadhead miles include:
- Driving to a pickup location after accepting an offer
- Waiting in a parking lot between orders
- Repositioning to a busier zone
- Returning empty from a distant drop-off
- Driving home at the end of a shift
Across most gig platforms, deadhead miles make up 30% to 40% of total logged-in miles. In rural or suburban markets, it can be even higher — sometimes 50% or more.
| Mile Type | Typical Share | Tax Deductible | Earns Money |
|---|---|---|---|
| Active trip (on-app) | 60-70% | Yes | Yes |
| En route to pickup | 10-15% | Yes | Indirectly |
| Waiting for orders | 10-15% | Yes (if logged in) | No |
| Repositioning | 5-10% | Yes | No |
Every deadhead mile costs you roughly $0.70 in vehicle costs (fuel, wear, depreciation) and earns you nothing. At 140 deadhead miles per week, that is $98 in pure cost that the app never accounts for.
Use a dedicated mileage tracker like Everlance, Stride, or MileIQ. They automatically log your drives and categorize business vs personal miles. Manual tracking almost always undercounts deadhead miles, which means you miss deductions and misjudge profit.
IRS Mileage Rate 2026 - The Gig Worker's Biggest Deduction
The IRS standard mileage rate is the single most valuable deduction for gig workers. It covers fuel, insurance, maintenance, and depreciation in one number.
| Tax Year | Business Mileage Rate |
|---|---|
| 2023 | $0.655 |
| 2024 | $0.67 |
| 2025 | $0.70 |
| 2026 | [Verify at IRS.gov] |
The rate applies to every business mile you drive. In 2025, a driver logging 20,000 business miles could deduct $14,000 from gross income. That alone can eliminate a large portion of the tax bill for a part-time gig worker.
You cannot deduct both the standard mileage rate AND actual vehicle expenses like gas and repairs in the same year. You pick one method for the life of the vehicle. Most gig workers use the standard mileage rate because it is simpler, produces a bigger deduction in most cases, and does not require saving every gas receipt.
Actual expense method works better for older, high-maintenance vehicles. But the record-keeping burden is heavy. Most gig workers should default to standard mileage unless they have a specific reason to switch. The first year you use standard mileage on a vehicle, you are locked in for the life of that vehicle.
DoorDash vs Uber vs Lyft - Net Income Comparison
Different platforms attract different driving patterns, which means different deadhead ratios and different net profit per mile. Here is how the three majors compare.
| Platform | Typical Gross/Hour | Deadhead % | Net Per Mile |
|---|---|---|---|
| DoorDash | $18 - $25 | 35-45% | $0.55 - $0.85 |
| Uber Eats | $15 - $22 | 40-50% | $0.45 - $0.75 |
| Uber (rideshare) | $20 - $30 | 25-35% | $0.70 - $1.10 |
| Lyft | $18 - $28 | 30-40% | $0.60 - $1.00 |
Rideshare (Uber and Lyft) usually beats delivery (DoorDash and Uber Eats) on net profit per mile because deadhead ratios are lower. Passengers wait at fixed pickup points, and drop-offs are often in commercial areas with more demand. Delivery has higher deadhead because you frequently end up in residential areas with no return orders.
That said, delivery is often better for drivers who prefer not to have strangers in their car. It is a lifestyle trade-off, not just a financial one.
Drivers who run DoorDash and Uber simultaneously keep busy during slow windows, which reduces deadhead miles. Two apps running at once can push the deadhead ratio below 25%, improving net profit per mile by 20% to 30%.
What Is a Good Profit Per Mile Benchmark
Not all net profit per mile is created equal. Here is how to grade your own numbers.
| Net Per Mile | Grade | What It Means |
|---|---|---|
| $1.00 or more | A | Excellent. You are running a real business. |
| $0.75 - $0.99 | B | Good. Sustainable long-term with the right vehicle. |
| $0.50 - $0.74 | C | Marginal. Works only with fuel-efficient vehicles. |
| $0.30 - $0.49 | D | Poor. Your vehicle is likely losing value faster than you earn. |
| Below $0.30 | F | Unprofitable. You would earn more at minimum wage. |
Most DoorDash and Uber drivers land in the C or D range on this scale. The drivers who hit B or A share three traits: fuel-efficient vehicles, urban markets with short trips, and disciplined offer selection (declining anything under $1.50 per mile).
If your grade is D or F, the fastest fix is not working more hours. It is working different hours, in different zones, and accepting only high-per-mile offers.
Self-Employment Tax for Gig Workers - What You Owe
Gig workers are independent contractors, so they pay the full 15.3% self-employment tax themselves. This is on top of federal and state income tax.
| Tax Component | Rate | Applies To |
|---|---|---|
| Self-Employment Tax | 15.3% | 92.35% of net profit |
| Federal Income Tax | 10% - 24% | Taxable income after standard deduction |
| State Income Tax | 0% - 13% | Depends on state |
Self-employment tax is calculated on net profit, not gross earnings. That means vehicle deductions from mileage tracking reduce both income tax and SE tax. Every mile you log reduces your taxable profit.
Half of the self-employment tax (7.65% of net profit) is deductible against income tax. This is automatic on Schedule SE. You do not need to do anything special to claim it.
For a gig worker netting $25,000 per year, the self-employment tax alone is roughly $3,500. Add federal income tax at the 12% bracket, and the effective rate lands around 22% to 25%. Most new gig workers are shocked by this number because nobody explained it to them at signup.
Set aside 25% to 30% of every payout in a separate savings account. When quarterly estimated taxes come due, the money is there. Gig workers who skip this step frequently owe thousands in April that they never planned for.
How to Track Mileage Accurately for Taxes and Profit
Accurate mileage tracking serves two purposes: it maximizes your tax deduction and it reveals your real profit per mile. Without it, you are guessing on both.
Three tools handle this well:
| App | Cost | Best For |
|---|---|---|
| Everlance | Free or $8/mo | Automatic trip detection, IRS-ready reports |
| Stride | Free | Simple tracking with tax deduction estimates |
| MileIQ | $6-10/mo | Best automatic categorization and export |
| Hurdlr | Free or $10/mo | All-in-one income, expense, and mileage tracker |
Run one of these every time you drive for gig work. Set it to start automatically when you begin driving. At the end of the month, export the totals: total business miles, on-app miles, and deadhead miles.
Once you have 4 to 6 weeks of data, you will see your actual deadhead ratio. If it is above 40%, you are likely working the wrong zones or accepting offers that require too much return driving.
Common Mileage Mistakes That Cost Gig Workers Thousands
These mistakes quietly drain profit and inflate tax bills every year.
Only tracking on-app miles. The app shows active trip miles. That is 60% to 70% of your real business miles. Missing the rest costs you thousands in deductions and hides your true deadhead ratio.
Commuting miles confusion. The IRS does not allow deducting your first drive from home to your first pickup or the last drive home from your last drop-off. Once you are logged in and driving for business, miles count. Personal commutes do not.
Forgetting to log driving to a hotspot. Repositioning to a busy zone while logged in is deductible business mileage. Most drivers forget to record it.
Not tracking shared vehicle use. If you use the same car for personal errands, only business miles are deductible. Mixing them up in your log creates tax problems in an audit.
Waiting until tax season to reconstruct miles. Memory-based mileage logs are unreliable and often disallowed in audits. Real-time tracking is the only defensible method.
Ignoring deadhead miles in profit calculations. Even if you track them for taxes, many drivers leave them out when calculating whether a shift was profitable. This makes slow weeks look better than they were.
Not recalculating after a vehicle change. When you buy a new car, the IRS rate is the same but the real cost may be different. Recalculate your break-even per mile so you know whether the new vehicle improves or hurts your profit.
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