What is your true hourly rate?

How the math works

Gross hourly is pay divided by hours. It ignores the fact that you paid for the gas, the tires, the brakes and the depreciation that made the shift possible.

True hourly rate subtracts two things: the real running cost of the miles you drove, and anything you paid out of pocket during the shift. This calculator uses about 24 cents per mile as a typical all-in running cost for an ordinary economy car — gas, tires, maintenance and wear. Your number is higher with an older truck or an expensive vehicle, and lower with a hybrid.

The mileage deduction is separate. The IRS standard mileage rate for business driving is a tax deduction, not a cash cost. It is usually much larger than what the miles actually cost you, which is why tracked mileage lowers your tax bill even on a shift that felt mediocre.

Why the gap matters

A $120 six-hour shift looks like $20 an hour. Drive 85 miles and spend $22 and the real number is closer to $13. Same effort, very different job. Once you can see that number per shift, you start choosing better shifts: shorter distances, denser zones, fewer long deliveries that pay a flat rate.

What to do with the number

• Compare zones and time blocks by true rate, not by total pay.
• Decline offers whose pay-per-mile drops you below your target rate.
• Keep every mile logged — the deduction is worth more than most drivers claim.