Should I Take This Gig? Calculator

How the calculator works

Every gig pays a gross amount, but that amount is rarely what lands in your bank account. This calculator walks through the same steps in order. Start with the gross payment, then subtract the platform or client fee and the cash expenses you will pay for this specific gig. That leaves a pre-tax business profit.

Next, apply your estimated federal + self-employment tax rate — the same 15.3% self-employment tax foundation used by the Self-Employment Tax Calculator — to get an estimated tax amount, then subtract it for an estimated take-home. Finally, divide that take-home by the total hours the gig really takes to get an effective hourly rate. That rate is the number that makes one gig fairly comparable to another.

What counts as a gig expense?

If you pay for something out of pocket to do the gig, it is a cost you should count when deciding whether the gig is worth it. Common examples include supplies and materials, tools and equipment, insulated bags or containers, a reasonable share of your phone plan, parking and tolls, permits, and any platform or product costs.

Enter ordinary cash expenses in Business expenses, then use Optional — include more for extras such as prep time, parking and tolls. Note that a tax deduction like the mileage deduction is handled separately below, because it is not the same thing as a cash expense.

Why effective hourly rate matters

Comparing gigs by total pay ignores time. A $200 job that takes 6 hours is worth less per hour than a $90 job that takes 1.5 hours. Because this calculator divides real take-home by total time, you can fairly compare a delivery, a design project, a tutoring session, or a market shift.

If you want to work backward from the income you need, the Freelance Rate Calculator can help you set rates for ongoing independent work.

How taxes affect gig income

As a 1099 worker, federal income tax and self-employment tax (Social Security and Medicare at 15.3% combined) are not withheld from your gig pay. The Self-Employment Tax Calculator breaks that down, and the Quarterly Tax Calculator helps you plan estimated payments so a large bill does not arrive at filing time.

This gig calculator applies a single estimated tax rate that you choose — a planning assumption, not an exact liability. For state-level context, see the State Tax Comparison.

When a gig may not be worth your time

If the effective hourly rate comes out low, ask what the gig is really buying. Long drive times, waiting, unpaid admin, and vehicle wear can quietly turn a good-sounding offer into a low hourly rate. A gig may also not be worth taking if it conflicts with better work or leaves you under your target rate.

If you keep doing this kind of work instead of a traditional job, the 1099 vs W-2 Take-Home Calculator and the S-Corp Breakeven analysis can help with the bigger picture.