Side Hustle Profitability Calculator
Find out if your side gig is truly worth your time. Calculate your real profit, effective hourly rate, and compare it to your opportunity cost.
Analyze Your Side Hustle
Calculate if your side project is truly profitable
Monthly Expenses
Total expenses: $300/month
For opportunity cost comparison
Include self-employment tax (15.3%)
Profitable, but lower than your main job rate
Effective Hourly Rate
$19
vs $25 main job
Monthly Net Profit
$840
after taxes
Annual Net Profit
$10,080
projected
Profit Margin
80.0%
gross margin
Opportunity Cost Analysis
If you worked these hours at main job
$1,083
43.3 hours/month
-$243
vs main job
Break-even revenue
$429
minimum needed
How to Use This Calculator
Enter your monthly revenue - the total income your side hustle generates before any expenses or taxes. Include all revenue streams from this single side business.
Add your expenses across different categories: direct costs (materials, supplies), marketing spend, tools and software subscriptions, and any other business-related costs. Be thorough - hidden expenses add up.
Track your hours per week honestly. Include not just active work time, but also admin tasks, client communication, learning, and any time spent thinking about or managing your side hustle.
Enter your main job hourly rate to calculate opportunity cost. If you're salaried, divide your annual salary by 2,080 (40 hours × 52 weeks) to get your hourly equivalent.
Understanding Your Results
Monthly net profit shows what you actually keep after expenses and taxes. This is the real money going into your pocket, not vanity revenue numbers.
Your effective hourly rate is the most important metric. It tells you what you're actually earning per hour of effort. Compare this to your main job rate to see if your time is well-spent.
Opportunity cost represents what you'd earn working those same hours at your main job (or another opportunity). If this exceeds your side hustle earnings, you're effectively paying to work.
The verdict summarizes whether your side hustle beats your opportunity cost. Even profitable side hustles may not be the best use of your limited time.
Frequently Asked Questions
How do I know if my side hustle is profitable?
A side hustle is profitable if your net income (revenue minus all expenses and taxes) is positive. But true profitability also means your effective hourly rate exceeds what you could earn elsewhere. Use our calculator to compare your side hustle earnings to your opportunity cost.
What is opportunity cost for a side hustle?
Opportunity cost is what you give up by choosing one option over another. For side hustles, it's the money you could have earned working extra hours at your main job or another activity. If your side hustle pays $15/hour but overtime pays $30/hour, your opportunity cost is $15/hour.
What expenses should I include in my calculation?
Include all business expenses: materials/inventory, software subscriptions, marketing costs, transaction fees, shipping, equipment, workspace costs, and travel. Don't forget indirect costs like internet, phone, and home office utilities if applicable.
How do I calculate my effective hourly rate?
Effective hourly rate = Net Monthly Profit ÷ Hours Worked Per Month. This gives you the true value of your time. For example, $500 profit from 50 hours of work equals $10/hour effective rate - much lower than many people expect.
What's a good profit margin for a side hustle?
Profit margins vary by type: service businesses should aim for 50-70%, product-based businesses 20-40%, and digital products 70-90%. If your margins are below these ranges, look for ways to reduce costs or increase prices.
Should I count my time as an expense?
Your time isn't a direct expense, but it has value. Our calculator shows your effective hourly rate and compares it to your opportunity cost. If you're earning less than you could elsewhere, your time might be better spent on other income sources.
When should I quit my side hustle?
Consider quitting if: your effective hourly rate is consistently below minimum wage, you're losing money after expenses, it's affecting your health or main job, or you could earn more doing something else. Our calculator helps quantify these factors for an objective decision.
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