How to Calculate Your True Hourly Rate as a Driver

Many drivers think they know their hourly rate, but most overestimate it. Understanding your true hourly rate helps you make better decisions about when and where to work.

The Common Mistake

Drivers often calculate:

Earnings ÷ Hours on trips = Hourly rate

But this ignores crucial factors.

What to Include in Hours

Your real working hours include:

Active Trip Time

Time from pickup to dropoff.

Waiting Time

Time between trips, waiting for the next request.

Dead Miles

Driving to pickup locations (not earning).

Preparation Time

Cleaning your vehicle, fueling up, handling admin.

Calculating True Earnings

Your gross fares aren't your earnings. Subtract:

Platform Commissions

Uber, Bolt, and others take a percentage.

Fuel Costs

A significant expense for any driver.

Vehicle Wear

Maintenance, tyres, eventual repairs.

Phone and Data

Business portion of your mobile costs.

Insurance

Private hire or taxi insurance premium.

The Formula

True Hourly Rate = (Gross Earnings - All Expenses) ÷ Total Hours Worked

For example:

• Gross weekly earnings: £800
• Platform commission: Already deducted by platform
• Fuel: £150
• Other expenses: £50
• Net earnings: £600
• Total hours (including waiting): 50
• True hourly rate: £12/hour

Why This Matters

Shift Planning

If certain shifts yield a lower true hourly rate, consider working different times.

Platform Comparison

Compare platforms using true hourly rate, not gross earnings.

Pricing Private Work

Know your costs to price private hire work profitably.

Tracking for Accuracy

To calculate your true hourly rate, you need to track:

• All earnings by source
• All hours worked (not just trip time)
• All expenses

TripRecord helps you capture earnings data. Combined with expense tracking, you can calculate your real hourly rate. Start tracking accurately with a free trial.