Effective Hourly Rate

Definition

True earnings per hour calculated by dividing net profit by total hours worked including unpaid time.

Related Terms

Take-Home Pay

Actual money remaining after all expenses and taxes. The true measure of gig work profitability.

Active Time

Time spent actively working on deliveries or rides, as opposed to waiting or deadheading.

FAQs

How do I calculate my real hourly rate?

Divide net earnings (after expenses) by total hours including driving to pickups and waiting.

Similar Terms

Base Pay

Minimum payment for a delivery or service before tips, set by the platform based on distance and other factors.

Platform Fee

Percentage or amount taken by gig platforms from payments, typically 10-40% depending on the platform.

Service Fee

Additional fee charged by platforms to customers or workers for using the platform's services.

Bonus/Incentive

Extra payment offered by platforms for completing certain goals like number of rides, deliveries, or referrals.

Fact-Checked Expert Reviewed Regularly Updated

Last updated: January 18, 2026

Reviewed by GigFinance Team, Gig Economy & Finance Experts

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How We Research & Review

Our team includes CPAs, former gig workers, and financial experts who personally test platforms and verify earnings claims. We follow strict editorial guidelines to ensure accuracy and objectivity.

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Important Disclaimer: This content is for informational purposes only and should not be considered tax, legal, or financial advice. Consult a qualified professional (CPA, tax attorney, or financial advisor) for advice specific to your situation.

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