How to Calculate Your True DoorDash Profit
Gross pay is not your real earnings. After subtracting mileage costs, gas, maintenance, and self-employment taxes, your net profit is well below what DoorDash deposits.
The DoorDash Profit Formula
Net Profit = Gross Pay - Gas - Maintenance - Depreciation - Taxes
Example: $70 gross - $10 gas - $4 maintenance - $4 depreciation - $13 taxes = $39 net over 4 hours = $9.75/hr net.
Worked Profit Examples by Market Density
These are illustrative examples with made-up inputs, not market averages. They show how the same shift can produce very different net profit depending on how many miles it takes: fewer miles per hour of pay leaves more profit, and more miles eats it fast.
Dense Urban (NYC, Chicago, SF) — 4 hour shift
Gross $90 · 35 miles driven · Gas/wear at $0.31/mi = $10.85 · Self-employment tax reserve (15.3%) = $13.77 · Net: ~$65.38 = $16.34/hr
Mid-Density Suburban (Atlanta, Denver, Charlotte) — 4 hour shift
Gross $72 · 65 miles driven · Gas/wear $20.15 · SE tax reserve $11.01 · Net: ~$40.84 = $10.21/hr
Sprawl Market (Phoenix, DFW, Houston) — 4 hour shift
Gross $66 · 95 miles driven · Gas/wear $29.45 · SE tax reserve $10.10 · Net: ~$26.45 = $6.61/hr
$0.31/mile is the rule-of-thumb cash cost combining an assumed gas price of $3.20/gal ÷ 22 mpg = $0.145 plus maintenance and depreciation (~$0.165). The IRS standard mileage deduction of $0.76/mile (July 1, 2026 onward) is much higher because it includes depreciation, insurance, and licensing — which you don't pay each shift but accumulate. The cash-cost number is what determines whether you net positive on a given delivery.
Hidden Costs Most Profit Calculators Miss
- Rideshare/delivery insurance endorsement. Your personal auto policy excludes commercial use. Ask your insurer whether you need a rideshare or delivery endorsement, and add its cost to your per-mile expenses.
- Phone wear and data overage. The constant GPS, screen-on time, and battery cycling kills phones faster. Heavy daily use can shorten a phone's life, so count part of its replacement cost as a business expense.
- Self-employed health insurance. A W-2 employee may get employer-subsidized health insurance. A 1099 driver pays the full premium — offset partially by the self-employed health insurance deduction (Schedule 1, line 17).
- No paid time off, no 401(k) match, no workers' comp. A sick day or vehicle breakdown that grounds you for a week is direct opportunity cost. Build an emergency fund before relying on gig income full-time.
Expense Estimates for DoorDash Drivers
| Expense | Per Mile | Annual (30K miles) |
|---|---|---|
| Gas | $0.08-$0.12 | $2,400-$3,600 |
| Maintenance | $0.03-$0.06 | $900-$1,800 |
| Depreciation | $0.10-$0.15 | $3,000-$4,500 |
| SE Tax Reserve | 15.3% of net | $3,000-$5,000 |
These are rough estimates for illustration. Actual costs vary a lot by vehicle, fuel price, and location.
Calculate Your Real Profit Automatically
ShiftTracker tracks all expenses and shows your true net $/hour in real time.
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