What Gig Net Floor Calculates
The real hourly rate a gig app pays you after vehicle depreciation — not just gas.
Gig Net Floor answers one question: is the app actually paying me above minimum wage after my car wears out?
App screens show gross pay. Your car shows the bill. Gig Net Floor subtracts IRS $0.67/mi from every shift and exposes the real hourly. Current runway:
operating_cost = miles × 0.67 real_hourly = (gross − operating_cost) ÷ hours if real_hourly < local_min_wage → CRITICAL if real_hourly < local_min_wage × 1.25 → GUARDED else → STABLE
- Log odometer start/end and app online-time. Gross includes tips.
- Compute operating_cost at $0.67/mi. No shortcuts to gas-only.
- Divide by total online hours, not order-active hours.
- Compare real_hourly to local minimum wage, not federal.
- If real_hourly < floor for 3+ shifts, stop driving. Runway:
no runway set .
Quick answer
Gig Net Floor answers one question: is the app actually paying me above minimum wage after my car wears out?
▸ Key Specs
- ▸ Formula: real_hourly = (gross − miles × 0.67) ÷ hours. Current runway
no runway set — shifts below floor accelerate the drain. - ▸ IRS $0.67/mi captures gas, maintenance, tires, insurance, depreciation. Not just pump price.
- ▸ Depreciation is the silent killer. Resale value lands 40% lower than a non-gig car of the same age.
- ▸ Tips count. Include them in Gross Pay.
- ▸ Real hourly below federal ($7.25) or local minimum wage means car equity is being converted into app cash at a discount.
▸ Worked Examples
- $140 gross / 95mi / 6hr shiftOperating cost 95 × $0.67 = $63.65. Net $76.35. Real hourly $12.73. Above federal min, below a $15 local min. Runway context:
no runway set . - $90 gross / 70mi / 4hr shiftOperating cost $46.90. Net $43.10. Real hourly $10.78. Unpaid dead miles still land on the odometer.
- $200 gross / 180mi / 7hr shiftOperating cost $120.60. Net $79.40. Real hourly $11.34. Big gross screenshots hide the worst net.
When to use which tool
- CYAN · STABLE — Real hourly above local minimum wage — gig actually pays after vehicle wear.
- GOLD · GUARDED — At or near minimum wage — break-even labor, accelerating car depreciation.
- MAGENTA · CRITICAL — Below minimum wage — you are trading car equity for app cash, losing money.
Related
- Gig Net FloorWhat DoorDash or Uber actually pays after IRS mileage depreciation — real hourly vs the minimum wage floor.
- When to Run Gig Net FloorFive specific moments where the real hourly tells you whether to keep driving.
- Five Gig Net Floor MistakesCommon errors that make gig work look more profitable than it actually is.
Frequently asked questions
› Why use $0.67 and not my own cost? Troubleshooting
You can compute your own per-mile cost, but $0.67 is the IRS figure used for tax deduction — it is the closest thing to a neutral, defensible "true" cost, especially for older vehicles where depreciation is already high.
› What about the tax deduction?
You can deduct miles at $0.67/mi against gig income at tax time, which partly compensates. But you still wear the car out — the deduction does not grow you a new vehicle.
› Is this the same as just subtracting gas? Trust & accuracy
No. Gas alone is usually $0.10-0.15/mi depending on MPG. The rest of $0.67 is tires, oil, brakes, suspension, insurance, and the car itself.
› How should I use a decision framework in real life? How-to
Use a decision framework to expose the tradeoff, not to outsource the decision. Write down the inputs, compare the output with your constraints, then ask what would change the answer. The strongest use is scenario testing: base case, conservative case, and failure case.
› Is this financial, legal, or tax advice? Trust & accuracy
No, this is not legal, financial, tax, medical, or professional advice unless the page explicitly says that use case is supported. It organizes assumptions so you can inspect them. Verify high-stakes choices with qualified people who can review facts, contracts, regulations, and downside risk.