# Calculating Net Pay



## JaxBeachDriver (Nov 27, 2014)

How are you guys calculating your net gain (if any)? I'm sure this has been covered elsewhere, but I haven't seen it yet. Is there a formula you use?

My Honda Pilot is fully paid for. It already has 137k miles, but that's because it was our only car (family of 3) for almost 2 years, and we have been commuting a lot in it. I plan to drive it until the wheels fall off. I get over 20 mpg (almost always). I use my own phone and have unlimited data.

As far as expenses, I understand that there's extra maintenance and gas, of course. Then there are the FICA taxes. There's the cost of keeping the car clean.My insurance is about $1k a year. Gas is at $2.57/gallon here.

As far as my own financial situation goes, I have a ton of write-offs this year, and don't expect to be coming out of pocket at the end of the year.

Are you able to write off portions of your maintenance or do you just get a flat rate based on miles driven?

I'm thinking that if the Uber gig is worth it at all, it's mostly due to surge and the rare tip. I've been doing this for 4 weeks now, and I have received two $20 tips and several smaller ones.


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## pengduck (Sep 26, 2014)

JaxBeachDriver said:


> How are you guys calculating your net gain (if any)? I'm sure this has been covered elsewhere, but I haven't seen it yet. Is there a formula you use?
> 
> My Honda Pilot is fully paid for. It already has 137k miles, but that's because it was our only car (family of 3) for almost 2 years, and we have been commuting a lot in it. I plan to drive it until the wheels fall off. I get over 20 mpg (almost always). I use my own phone and have unlimited data.
> 
> ...


Set up a spread sheet. Start with your net pay less mileage. Miles times .56. Then deduct you 7.65% for matching ss and medicare taxes. What's left is your net pay.


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## JaxBeachDriver (Nov 27, 2014)

So, for instance:

Net pay: $27.13
-Mileage: 19.47 x .56 = $10.90
= $16.23

16.23 x .0765 = 1.24

16.23 - 1.24 = $14.99

Should I not figure in the full 15 percent for taxes?


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## chi1cabby (May 28, 2014)

JaxBeachDriver said:


> Should I not figure in the full 15 percent for taxes?


That is correct you will pay about 13.9% of your Schd C income in your Self-employment tax (Schd SE)


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## chi1cabby (May 28, 2014)

The forum has an earnings calculator that can be helpful in figuring out your income.

http://www.uberpeople.net/pages/EarningsCalculator/


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## juicesack (Nov 18, 2014)

For every $100 (%), uber gets 20 or 25, I average Uncle Sam's cut as 24 (which is 30% of 80; or 22 if of 75%), and my Prius 6, or say 10 for your kind of car with only 20 mpg. So your net for every 100 is either 100-20-24-10=46 or 100-25-22-10=43.

Now, if you make that 100 in 1 hour then your hourly is 46 or 43 .. in 2 hours 23 .. in 3 hours 15.


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## UberBlackDriverLA (Aug 21, 2014)

It is irrelevant if you car is paid for. What matters is how much you car decreases in value while driving for Uber. You are very smart using an old car for Uber. The depreciation on a new car makes it impossible to make more than minuimum wage with UberX. 

You need to figure out your devaluation of your vehicle per mile. 

The down side is that an old car requires much more maintenance. You will need to keep up with all the scheduled maintenance because driving passengers around is MUCH harder on a vehicle than your commute. The extra weight in the vehicle will wear things out faster such as the brakes, suspension and the engine has to work harder.

Devaluation of your vehicle and added maintenance costs are rarily factored in by most UberX drivers, but they are actually your biggest costs, often times more than fuel.


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## UberBlackDriverLA (Aug 21, 2014)

Another cost you should consider is a personal umbrella policy. It sounds like you have a family and may have some considerable assets. Driving for Uber without setting up a LLC puts your family at a MAJOR risk. If anybody gets hurt in your vehicle, you will be sued personally and puts everything you own at risk.


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## JaxBeachDriver (Nov 27, 2014)

UberBlackDriverLA said:


> Another cost you should consider is a personal umbrella policy. It sounds like you have a family and may have some considerable assets. Driving for Uber without setting up a LLC puts your family at a MAJOR risk. If anybody gets hurt in your vehicle, you will be sued personally and puts everything you own at risk.


So why not just go for the whole package and get Uber black? What are they paying? I'm sure I could find an affordable used Town Car or similar. I have a friend who's a mechanic, so I don't get bent over too bad... I don't know their fee schedule. Or the price of commercial insurance, etc.


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## JaxBeachDriver (Nov 27, 2014)

UberBlackDriverLA said:


> Another cost you should consider is a personal umbrella policy. It sounds like you have a family and may have some considerable assets. Driving for Uber without setting up a LLC puts your family at a MAJOR risk. If anybody gets hurt in your vehicle, you will be sued personally and puts everything you own at risk.


I do have an umbrella policy, but no LLC. However, I'm not sure how that would factor in since I've only just started driving for Uber and have not yet disclosed that I do this on the side.... But if I'm going to set up an LLC, why wouldn't I just go ahead and become a professional driver?


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## pengduck (Sep 26, 2014)

JaxBeachDriver said:


> So, for instance:
> 
> Net pay: $27.13
> -Mileage: 19.47 x .56 = $10.90
> ...


no because you have to pay that at any job.


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## JaxBeachDriver (Nov 27, 2014)

pengduck said:


> no because you have to pay that at any job.


Yes, but it would come right out of my check, and I would never have to save up that money to pay at the end of the year. I'm trying to figure out my take home


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