Side Hustle Hourly Rate: Is Your Side Gig Worth It?

# Side Hustle Hourly Rate: Is Your Side Gig Worth It? That "extra $500/month" might not be worth it once you calculate your true hourly rate. ## The True Hourly Rate Formula **True Hourly Rate = (Revenue - Expenses) ÷ Total Hours Worked** ### Total Hours Includes: - Active work time - Marketing/sales - Administrative tasks - Learning/training - Commute (if applicable) ## Real Examples ### Uber/Lyft Driver **Monthly**: - Revenue: $2,000 - Expenses: $600 (gas, maintenance, insurance) - Net: $1,400 **Hours**: - Driving: 60 hours - Waiting/positioning: 20 hours - Total: 80 hours **True Hourly Rate**: $1,400 ÷ 80 = **$17.50/hour** (Below California minimum wage of $16/hour after expenses) ### Freelance Writing **Monthly**: - Revenue: $3,000 - Expenses: $100 (software, subscriptions) - Net: $2,900 **Hours**: - Writing: 40 hours - Pitching/marketing: 15 hours - Revisions: 10 hours - Admin: 5 hours - Total: 70 hours **True Hourly Rate**: $2,900 ÷ 70 = **$41.43/hour** ### DoorDash **Monthly**: - Revenue: $1,800 - Expenses: $450 (gas, car maintenance) - Net: $1,350 **Hours**: - Delivering: 55 hours - Driving between orders: 15 hours - Total: 70 hours **True Hourly Rate**: $1,350 ÷ 70 = **$19.29/hour** ### Web Development (Freelance) **Monthly**: - Revenue: $8,000 - Expenses: $500 (software, hosting, tools) - Net: $7,500 **Hours**: - Coding: 60 hours - Client calls: 8 hours - Project management: 12 hours - Marketing: 10 hours - Total: 90 hours **True Hourly Rate**: $7,500 ÷ 90 = **$83.33/hour** ## The Opportunity Cost Compare to your day job: **Day job**: $100,000/year = $48.08/hour **Side hustle**: $41.43/hour (freelance writing) **Verdict**: You're earning **13.8% less** than your day job. **Better option**: Negotiate a raise or work overtime at main job. ## When Side Hustles Make Sense Side hustles are worth it when: 1. **Higher hourly rate than day job** 2. **Building future business** (short-term low rate, long-term high) 3. **Learning valuable skills** (career switching) 4. **Passion/enjoyment** (non-financial value) 5. **Day job maxed out** (can't get OT or raise) ## Calculate Your Side Hustle Rate See your true hourly earnings: [Try TickrPay's free calculator](/)