Short answer: Selling 40 items a month at $25, with $6 of cost each, 10% fees, $30 of monthly costs and 30 hours of work, you keep about $15.75 an hour after a 25% tax set-aside, or $473 a month. Side hustle profit is taxable income; see Self-Employed Tax Deductions: What Freelancers and Gig Workers Miss for the costs that lower it.
Check our math
Here is the result above, step by step, using the numbers already filled in.
- Monthly revenue$25 × 40 = $1,000
- Platform and payment fees (10%)$1,000 × 10% = $100
- Costs$6 × 40 + $30 fixed = $270
- Profit before tax$1,000 − $100 − $270 = $630
- Tax set-aside (25%)$630 × 25% = $157.50
- Profit after tax per month$630 − $157.50 = $472.50 (shown as $473)
- Per hour$472.50 ÷ 30 hrs = $15.75/hr
- Per year$472.50 × 12 = $5,670
How this calculator works
Revenue is the number people quote, and it's the least useful one. The calculator takes out the platform or card fee, the cost of each sale (materials, packaging, shipping you pay), and fixed monthly costs like subscriptions and ads. What's left is profit, and you owe tax on it.
The tax set-aside is a flat share of profit. Side hustle income is self-employment income, so it carries 15.3% self-employment tax on 92.35% of profit once your net earnings reach $400 for the year, plus income tax at your bracket (IRS: Self-employment tax (Social Security and Medicare taxes)). People with a day job are often in a higher bracket than their side income alone suggests, which is why the default is 25%.
Dividing by your hours turns it into a number you can compare with other work. Count every hour: making, listing, packing, messages and trips to the post office.
What the hustle pays at different sales levels
| Sales per month | Revenue | Profit after tax / month | Per hour |
|---|---|---|---|
| 10 | $250 | $101 | $13.50/hr |
| 20 | $500 | $225 | $15.00/hr |
| 30 | $750 | $349 | $15.50/hr |
| 40 | $1,000 | $473 | $15.75/hr |
| 50 | $1,250 | $596 | $15.90/hr |
| 60 | $1,500 | $720 | $16.00/hr |
| 80 | $2,000 | $968 | $16.13/hr |
| 100 | $2,500 | $1,215 | $16.20/hr |
Price $25, cost $6 per sale, 10% fees, $30 fixed costs, 25% tax set-aside, and 45 minutes of work per sale.
Worked examples
Digital downloads shop
Sells 60 templates a month at $12 with no cost per sale, 12% fees, $40 of monthly tools and 15 hours of work.
| Result | |
|---|---|
| Per hour | $29.68/hr |
| Profit after tax / month | $445 |
| Profit after tax / year | $5,342 |
Weekend reselling
Sells 25 items a month at $35 that cost $15 each to source, 13% fees, $10 fixed and 40 hours of sourcing, listing and shipping.
| Result | |
|---|---|
| Per hour | $7.05/hr |
| Profit after tax / month | $282 |
| Profit after tax / year | $3,386 |
Using your result
Compare the hourly figure with something real: your day-job pay, or what a part-time job would pay for the same hours. If the side hustle pays less, it can still be worth it for other reasons, but it's better to know.
Then test changes one at a time. Raise the price by 10% and see what happens to the hourly number; cut fixed costs you don't use; or estimate how much time a template, a batch or a supplier would save. The input with the biggest effect is the one to work on first.
Keep records from the start: sales, fees, costs and receipts. They're what turn revenue into a lower taxable profit at tax time.
What it doesn't cover
- It uses a flat tax set-aside. For your real bill, enter your yearly profit in the self-employment tax calculator.
- Startup costs and unsold inventory aren't included. Add a monthly share of them to fixed costs.
- Sales tax you collect isn't income and isn't counted here.
- Fixed per-order fees (for example a flat amount per transaction) belong in cost per sale.
Read more
- Self-Employed Tax Deductions: What Freelancers and Gig Workers Miss
- How Much Should You Set Aside for Taxes When You're Self-Employed?
Frequently asked questions
Is my side hustle worth it?
Compare the hourly result with what you could earn elsewhere for the same time. With the calculator's starting numbers it pays $15.75 an hour after fees, costs and taxes.
Do I have to pay taxes on side hustle income?
Yes. All of it is taxable income, whether or not you get a 1099. Once your net earnings are $400 or more for the year you also owe self-employment tax (IRS). Business costs you can document lower the profit you're taxed on.
How much should I set aside from a side hustle?
A common starting point is 25–30% of profit. Run your expected yearly profit through the self-employment tax calculator for a closer number.
What does 100 sales a month pay?
At the same price, costs and time per sale, 100 sales a month is $2,500 of revenue and about $1,215 after tax, or $16.20 an hour. Volume raises the total, but the hourly figure barely moves unless you cut time or costs per sale.
How do I make my side hustle pay more per hour?
Raise prices, cut the steps that take the most time, or lower fees by selling through your own store. Price is usually the fastest lever because it raises profit on every sale without more hours.
What counts as a cost for a side hustle?
Anything you spend to make the sale: materials, packaging, shipping you pay, platform fees, subscriptions and ads. Many of these are deductible; see Self-Employed Tax Deductions: What Freelancers and Gig Workers Miss.
Sources
Reviewed against IRS sources: October 2026 · Updated October 2026 · By the NetTakeHome team. Estimates for planning, not tax, legal or financial advice.