# True Cost to Drive



## chicagoguyPHX (Jul 31, 2015)

I have a 2010 Honda Accord

http://www.edmunds.com/tco.html

It costs me $5,188 to drive my car 15,000 miles. Around .34/mile

For every 15,000 miles, that I have a PAX in my car, I would make $10,125

(.90/mi - 25% to Uber) I won't even bother with the .16/min rate. Its only $43/day for 8 straight hours with PAX in your car.

Total Revenue - $10,125
Total Expenses - $5,188
Net profit - $4,937

*Minus the 3 or 4 miles you drove to pickup your PAX*

This is in Phoenix.

Now, lets talk Detroit

(.30/mi - 25% to Uber)

Total Revenue - $3,375
Total Expenses - $5,188
Net Loss - ($1,813)


What are people thinking?


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## UberPasco (Oct 18, 2015)

chicagoguyPHX said:


> I have a 2010 Honda Accord
> 
> http://www.edmunds.com/tco.html
> 
> ...


That your an idiot to ignore $0.16 and $0.30 per mile respectively in your calculations? Reality is bad enough without resorting to faulty math.


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## chicagoguyPHX (Jul 31, 2015)

UberPasco said:


> That your an idiot to ignore $0.16 and $0.30 per mile respectively in your calculations? Reality is bad enough without resorting to faulty math.


You're an idiot to ignore basic grammar


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## TwoFiddyMile (Mar 13, 2015)

You left dead miles out of your equation. 
Total miles driven is a must.
Go back to square 1, figure out your total miles THEN run total operating costs then figure your gross revenue.

Ive been at this for 18 years.
Ill be gentle.


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## UberPasco (Oct 18, 2015)

chicagoguyPHX said:


> You're an idiot to ignore basic grammar


Lol, pet peeve of mine. Fat fingered auto complete.


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## Ubernomics (Nov 11, 2015)

chicagoguyPHX said:


> I have a 2010 Honda Accord
> 
> http://www.edmunds.com/tco.html
> 
> ...


I just used the Ubernet calculator and it says I am making a staggering -$1.15 per hour. I went had my new tires I got 3 months ago measured for tread depth and guesssssssss what....almost time for new tires, a couple more months!!! When I figured that out, I just about shit.. I need brakes now, oil change every month, 2-3 car washes a week: I'm done. I just bought car 4 months ago to do this, now selling it.


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## BigyellerTJ (Feb 3, 2016)

How about we simplify it even further. I started driving at the end of Oct. 2015. I made $2080 in gross fares for 2015, of which Uber took its 20% off of the base fare, plus the $1.90 safe rider fee per trip. My net pay from Uber was only $1392. Then I had to fork over $600 in taxes. My actual net pay is only 38% of my gross earnings. That's disgusting. The fact that I am taxed off of my gross fares instead of what I am actually paid by Uber is complete garbage.


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## chicagoguyPHX (Jul 31, 2015)

TwoFiddyMile said:


> You left dead miles out of your equation.
> Total miles driven is a must.
> Go back to square 1, figure out your total miles THEN run total operating costs then figure your gross revenue.
> 
> ...


Another driver mentioned that I should figure one dead mile for every paid mile.
If that's the case, would it add up like this?

Revenue - 75,000 @ .67/mi = $50,250
Expenses - 150,000 @.34/mi = $51,000

*Net Loss - $750*

But it's not supposed to be a "full time" job

So let's say I drive for 4,000 PAX occupied miles

Revenue - 4,000 @ .67/mi = $2,680
Expenses - 8,000 @.34/mi = $2,720

*Net Loss - $40*

Granted, UBER deposited $2,680 into my account, but overall, I lost $40.

Is this correct? I am in complete shock!!!!!!


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## 14gIV (Dec 12, 2015)

BigyellerTJ said:


> My net pay from Uber was only $1392. Then I had to fork over $600 in taxes. My actual net pay is only 38% of my gross earnings. That's disgusting.


You're way off man. You will be taxed on your profits after expenses in this case you're taxed on the $1392.
Lol and you calculated at tax rate of 44% (even billionaires pay a 39% max rate)
So your $1392 will be taxed a whatever ordinary income tax bracket that you fall under. 
Example: if you made $37,400 or under you're taxed at 9% for the 1st $9000 and 15% for the remaining $28,400


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## IckyDoody (Sep 18, 2015)

I am assuming that the mileage rate in your market is $.67 and that the time rate is $.16. Both of these are after uber's cut? If that is the case then the following would be more appropriate (though not perfect):

Earnings equals ...

miles-with-pax * (.67 + .16*2)


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## UberPasco (Oct 18, 2015)

14gIV said:


> You're way off man. You will be taxed on your profits after expenses in this case you're taxed on the $1392.
> Lol and you calculated at tax rate of 44% (even billionaires pay a 39% max rate)
> So your $1392 will be taxed a whatever ordinary income tax bracket that you fall under.
> Example: if you made $37,400 or under you're taxed at 9% for the 1st $9000 and 15% for the remaining $28,400


Also, the $1392 is net before expenses. Most likely your deductions will lower your tax liability to zero or below (further offsetting other income you may have.)


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## chicagoguyPHX (Jul 31, 2015)

IckyDoody said:


> I am assuming that the mileage rate in your market is $.67 and that the time rate is $.16. Both of these are after uber's cut? If that is the case then the following would be more appropriate (though not perfect):
> 
> Earnings equals ...
> 
> miles-with-pax * (.67 + .16*2)


In Phoenix it's .90/mi and .16/min so after Uber's bite, .67/mi and .12/min respectivley


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## chicagoguyPHX (Jul 31, 2015)

That .12/min only works out to $58/day if you have a PAX in your car for 8 STRAIGHT hours


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## Greguzzi (Jan 9, 2016)

chicagoguyPHX said:


> That .12/min only works out to $58/day if you have a PAX in your car for 8 STRAIGHT hours


 And that's before you deduct your expenses. Anyone who drives at those rates is making sub-minimum wage, if not losing money.


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## tomabq (Jan 14, 2015)

BigyellerTJ said:


> How about we simplify it even further. I started driving at the end of Oct. 2015. I made $2080 in gross fares for 2015, of which Uber took its 20% off of the base fare, plus the $1.90 safe rider fee per trip. My net pay from Uber was only $1392. Then I had to fork over $600 in taxes. My actual net pay is only 38% of my gross earnings. That's disgusting. The fact that I am taxed off of my gross fares instead of what I am actually paid by Uber is complete garbage.


You need a different accountant. No way you should pay on gross.


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## Aw Jeez (Jul 13, 2015)

No, no, no. Just because the IRS allows $0.575/mile doesn't mean it costs you that to run the car. True cost of operation is probably around $0.25/mile. And yes, use total miles driven, not just revenue miles. It still costs you money to drive for Uber when no one is in the car. Do your numbers that way. It's still depressing.


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## Manotas (Dec 2, 2015)

I'm not a math wizard but I'm coming to a simple conclusion: Just leave your car at home and ride UberX to a regular job, you'll make more money that way. Anyone?


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## Ubernomics (Nov 11, 2015)

BigyellerTJ said:


> How about we simplify it even further. I started driving at the end of Oct. 2015. I made $2080 in gross fares for 2015, of which Uber took its 20% off of the base fare, plus the $1.90 safe rider fee per trip. My net pay from Uber was only $1392. Then I had to fork over $600 in taxes. My actual net pay is only 38% of my gross earnings. That's disgusting. The fact that I am taxed off of my gross fares instead of what I am actually paid by Uber is complete garbage.


If the tax forms includes anything other than what they actually paid out it is incorrect and needs to be reworked. You only have to pay tax on your actual earnings less your milage expense.


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## Realityshark (Sep 22, 2014)

You can't make much money doing Uber, if any. If you have a beat up, high mileage car, you might be able to milk a few dollars out of it before it dies and needs to be replaced. That's about it. If you have a late model car, I don't see how driving it for Uber makes any sense. I believe most drivers with newer cars can't see beyond a week or two down the road. Although they might notice all those miles, they choose to ignore them.


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## Greguzzi (Jan 9, 2016)

Manotas said:


> I'm not a math wizard but I'm coming to a simple conclusion: Just leave your car at home and ride UberX to a regular job, you'll make more money that way. Anyone?


True. If you aren't bringing home more than $1 (after Uber's cut and after IRS mileage deduction) per total mile driven, you aren't really making shit. If your gross rates are under a buck per mile, you are almost certainly losing money. All you are doing is using your car as an ATM, withdrawing the equity from your car for each mile driven. In the end, you will have no money and a worn-out car. Don't fool yourself into thinking your total costs are less than the IRS allows. The IRS is not in the habit of handing out free deductions, and you need to be saving money to replace the car you are wearing out.


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## UberPasco (Oct 18, 2015)

Ubernomics said:


> If the tax forms includes anything other than what they actually paid out it is incorrect and needs to be reworked. You only have to pay tax on your actual earnings less your milage expense.


Sigh. Please don't post anymore nonsense like your first sentence. It is OK not to know something. It isn't OK to be flat out wrong and state it as a fact.

Nothing personal. It just seems to be the norm here.


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