How the side hustle calculator works
The calculator turns monthly revenue into profit by subtracting expenses, applies your tax rate, and divides by the hours you work each month.
After-tax profit = Profit × (1 − tax rate)
Hourly = After-tax profit ÷ (Hours per week × 52 ÷ 12)
Count every hour: making, listing, messaging customers, shipping and bookkeeping. Expenses include materials, platform and payment fees, mileage, software and ads. In the US, side income over $400 a year is subject to 15.3% self-employment tax plus income tax at your marginal rate, so 25% to 40% is a realistic combined rate for many people.
Worked example
An Etsy shop brings in $1,500 a month with $300 of costs, for $1,200 of profit. At 10 hours a week (43.3 hours a month) that is $27.69 an hour before tax. After a 30% tax rate you keep $10,080 a year, or $19.38 an hour.
Frequently asked questions
Do I have to pay taxes on side hustle income?
Yes. In the US all income is taxable, and net self-employment earnings of $400 or more are subject to self-employment tax.
What expenses can I deduct?
Ordinary and necessary business costs, such as materials, fees, a share of phone and internet, and business mileage.
Will I get a 1099-K?
Payment platforms report payments above federal thresholds, but you owe tax whether or not you receive a form.
What tax rate should I use?
Your marginal income tax rate plus about 14% for self-employment tax (15.3% on 92.35% of profit).
Updated October 2026. Results are estimates for education, not financial or medical advice. All math runs in your browser; nothing you type is sent anywhere.