Side Hustle Profit Calculator
This side hustle profit calculator helps you estimate how much money you actually keep from your extra work after paying costs and taxes. By combining your weekly hours, hourly earnings, variable costs, fixed monthly expenses, and an effective tax rate, it projects both monthly and annual profit so you can decide whether a side hustle is worth your time.
Use it when you are comparing side hustle ideas, setting prices, or checking whether your current gig covers your expenses and taxes. It is especially helpful for freelancers, gig workers, creators, and anyone who has a small part-time business alongside a main job.
How to use the Side Hustle Profit Calculator
- Hours per week — How many hours you expect to work on this side hustle in a typical week. This should include billable time plus any necessary work you are not directly paid for (such as admin or marketing) if you want a realistic effective hourly profit.
- Revenue per hour ($) — The average amount you earn for each hour of work. For fixed-price projects, divide the typical project fee by the hours it usually takes.
- Variable cost per hour ($) — Costs that rise with each hour you work, such as fuel for deliveries, transaction fees, or consumable materials. If your costs are per job, convert them into an hourly amount.
- Fixed monthly costs ($) — Ongoing monthly expenses related to your side hustle that do not change much with hours, such as software subscriptions, website hosting, equipment leases, or coworking space.
- Effective tax rate (%) — An approximate overall tax percentage applied to your profit (not your revenue). This can include income tax and self-employment taxes. If you are unsure, you might start with a range like 15–30% and adjust based on your situation or advice from a professional.
Leave any number at zero if it does not apply. The calculator treats blank fields the same as zero. You can change values and recalculate as many times as you like to explore different scenarios.
Formulas used in the calculator
The calculator converts your weekly activity into monthly and annual profit using straightforward arithmetic. At a high level:
- Weekly revenue = Hours per week × Revenue per hour
- Weekly variable cost = Hours per week × Variable cost per hour
- Monthly revenue = Weekly revenue × 4.33
- Monthly variable cost = Weekly variable cost × 4.33
- Monthly net profit before tax = Monthly revenue − Monthly variable cost − Fixed monthly costs
- Monthly tax = Monthly net profit before tax × (Effective tax rate ÷ 100)
- Monthly profit after tax = Monthly net profit before tax − Monthly tax
- Annual profit after tax = Monthly profit after tax × 12
In MathML form, the core monthly profit calculation looks like this:
Where:
- h = hours per week
- r = revenue per hour
- c = variable cost per hour
- F = fixed monthly costs
- t = effective tax rate (percentage)
- P = monthly profit after tax
Interpreting your results
Once you enter your numbers and calculate, you will typically see monthly and annual profit after tax, along with effective hourly profit. Use these numbers to answer questions such as:
- Is your side hustle covering all of its ongoing costs and taxes, or are you effectively subsidizing it?
- How much are you really making per hour after costs and tax, compared with your main job or other opportunities?
- What happens to profit if you increase your rate slightly or reduce an expense?
If your profit after tax is negative, your current assumptions mean the side hustle loses money. You may need to increase your prices, reduce costs, or limit fixed commitments.
Worked example: freelance designer
Imagine a freelance designer running a side hustle in the evenings. They expect to work 10 hours per week and can bill an average of $50 per hour. Their design software and tools cost $60 per month. They estimate variable costs at $5 per hour and choose an effective tax rate of 25%.
- Hours per week: 10
- Revenue per hour: $50
- Variable cost per hour: $5
- Fixed monthly costs: $60
- Effective tax rate: 25%
Weekly revenue is 10 × $50 = $500, and weekly variable costs are 10 × $5 = $50. Monthly revenue is about $500 × 4.33 = $2,165, and monthly variable costs are about $50 × 4.33 = $217.
Monthly net profit before tax is $2,165 − $217 − $60 = $1,888. With a 25% tax rate, monthly tax is $1,888 × 0.25 = $472. The designer’s monthly profit after tax is $1,416, or about $16,992 per year.
Effective hourly profit after tax is that monthly profit divided by total hours worked per month. Here that is roughly (10 × 4.33) = 43.3 hours per month, so $1,416 ÷ 43.3 ≈ $32.70 per hour after costs and tax.
Comparing side hustle scenarios
You can run multiple scenarios in the calculator and compare the results to decide which side hustle or pricing strategy makes the most sense. The sample scenarios below illustrate how different business models affect profit.
| Scenario | Hours/week | Revenue/hour | Variable cost/hour | Fixed monthly costs | Est. monthly profit after tax* |
|---|---|---|---|---|---|
| Freelance designer | 10 | $50 | $5 | $60 | ≈ $1,416 |
| Rideshare driver | 15 | $28 | $10 | $120 | ≈ $1,025 |
| Online tutor | 8 | $35 | $2 | $40 | ≈ $730 |
*Assumes an effective tax rate of 25% for all three. Enter each set of numbers into the calculator to explore how changing one factor — such as raising your rate or cutting a fixed subscription — changes your take-home pay.
Assumptions and limitations
- Steady hours and rates: The calculator assumes you work roughly the same number of hours every week and earn the same average hourly revenue. Seasonal or highly irregular side hustles may need separate scenarios for busy and slow periods.
- Average effective tax rate: Taxes are simplified to a single percentage applied to profit. Real tax systems use brackets, deductions, and credits, so your actual tax may differ.
- Costs tied to the side hustle: Only include expenses directly related to the side hustle. Personal expenses or mixed-use items may be treated differently for tax purposes.
- No debt, depreciation, or inventory timing: The calculator does not model loan interest, asset depreciation, or complex inventory accounting. For larger operations, you may need more detailed tools.
- Estimates, not advice: Results are for education and planning only and are not financial, tax, or legal advice. For personalized guidance, consult a qualified professional.
For deeper planning, you may also want to use a dedicated break-even calculator or pricing calculator to refine your rates and understand how many hours or sales you need to reach your income goals.