Why is my real hourly rate lower than the app says?

Because the app shows what it paid you, before anything you spend to do the work. Fuel, insurance and tax all come out of that figure, and the tax is due whether or not you put it aside.

What does a typical week work out at?

£600.00 for 40 hours and 350 miles in a 45 mpg petrol car at 150p a litre, with £25.00 of insurance: £15.00 an hour before costs, and £11.92 an hour after fuel (£53.04), insurance and tax (£45.25).

Does the mileage allowance count as income?

No. It lowers the profit you pay tax on, which is why it is in the tax figure, but it is not paid to you. The money you actually spend on fuel is the fuel line.

Is it worth doing more hours?

Compare the real hourly rate of the extra hours, not the average. Late, quiet hours with long empty drives can pay much less than the busy ones once fuel is counted. The best and worst hours article goes into it.

Real hourly rate calculator for delivery drivers

The hourly figure the apps show is before fuel, insurance and tax. Take those off and what is left can be a lot less. Put in a typical week to see your own real hourly rate.

Correct for the 2026/27 tax year. Last checked against gov.uk 12/09/2026. Free, no sign-up, and nothing you type leaves your browser.

Your real hourly rate

£11.92

The apps would show £15.00 an hour.

Paid this week: £600.00
Fuel, £0.15 a mile: -£53.04
Insurance: -£25.00
Tax and National Insurance: -£45.25
Left for the week: £476.72

Tax is worked out for a year of weeks like this, after the mileage allowance, and shared back across them. Servicing, tyres and wear are not taken off.

How the real hourly rate is worked out

Your earnings for the week, minus fuel, minus the week's share of your insurance, minus the tax you will owe on that week, divided by the hours you were logged on. It is the same "true £/hr" the JoltMile app shows for your logged shifts.

Fuel is your business miles times your cost per mile, from your fuel economy and the price you pay.
Tax is worked out for a year of weeks like this one, after the mileage allowance, then spread back evenly. Tax is charged on the year, not the week.
Wear and tear, tyres and servicing are not taken off. They are real costs, and the true cost per mile guide shows how to count them.

Leave the weeks at 46 if you take a few weeks off a year. The number changes the tax, because a bigger year pushes more of your profit into tax and National Insurance.

Common questions

Why is my real hourly rate lower than the app says?: Because the app shows what it paid you, before anything you spend to do the work. Fuel, insurance and tax all come out of that figure, and the tax is due whether or not you put it aside.
What does a typical week work out at?: £600.00 for 40 hours and 350 miles in a 45 mpg petrol car at 150p a litre, with £25.00 of insurance: £15.00 an hour before costs, and £11.92 an hour after fuel (£53.04), insurance and tax (£45.25).
Does the mileage allowance count as income?: No. It lowers the profit you pay tax on, which is why it is in the tax figure, but it is not paid to you. The money you actually spend on fuel is the fuel line.
Is it worth doing more hours?: Compare the real hourly rate of the extra hours, not the average. Late, quiet hours with long empty drives can pay much less than the busy ones once fuel is counted. The best and worst hours article goes into it.

Sources

Let JoltMile do this for every shift

Tap Start shift in the app when you set off and End shift when you finish. JoltMile captures the miles and keeps the running total for the whole tax year, ready for Self Assessment. Your first 10 shifts are free.

Get the app

Other calculators

Mileage allowance calculator for delivery drivers: What your business miles are worth at the HMRC approved rates.
Tax calculator for UK delivery drivers: Your income tax and National Insurance for the year, and what to put aside each month.