Prop 22 Calculator

Estimate your guaranteed earnings and potential top-up pay under California’s Proposition 22.

Your Estimated Prop 22 Top-Up Payment is:

$0.00

This is the additional amount the app may owe you to meet the guaranteed minimum.

Earnings Breakdown

A comparison of your actual app earnings versus the Prop 22 guaranteed minimum.

What is a Prop 22 Calculator?

A prop 22 calculator is a specialized tool designed for California-based gig workers for companies like Uber, Lyft, and DoorDash. Following the passage of Proposition 22, these workers are classified as independent contractors but are entitled to a specific set of minimum earning guarantees. This calculator helps them verify if their pay meets those state-mandated minimums.

Essentially, the law ensures that for their “engaged time,” drivers earn at least 120% of the local minimum wage, plus a per-mile compensation for vehicle expenses. If a driver’s base pay from the app falls short of this guaranteed amount over a two-week period, the company must pay the difference. A prop 22 calculator does this exact calculation, showing a driver if they are owed a “top-up” payment.

This tool is crucial for any app-based driver in California who wants to understand their true earnings and ensure they are being paid fairly according to the law.

Prop 22 Formula and Explanation

The core of the prop 22 calculator is the formula that determines your guaranteed minimum earnings. It’s a two-part calculation based on your active time and miles driven.

The Formula:

Guaranteed Minimum = (Engaged Hours × Local Minimum Wage × 1.20) + (Engaged Miles × Per-Mile Rate)

Prop 22 Top-Up = MAX(0, Guaranteed Minimum - Actual App Earnings)

This calculation determines the minimum amount an app company must pay you for your work during a pay period. If your base earnings from the app are less than this amount, you receive the difference as a top-up. Our Paycheck Calculator can help you understand your overall take-home pay.

Formula Variables

Variables used in the Prop 22 calculation.

Variable	Meaning	Unit	Typical Range
Engaged Hours	Time from accepting a trip to completing it.	Hours	0 – 80 per week
Local Minimum Wage	Minimum wage in the city of the trip’s origin.	USD ($) per hour	$15 – $20
1.20 Multiplier	Represents the 120% of minimum wage guarantee.	Ratio	1.2 (fixed)
Engaged Miles	Miles driven from accepting to completing a trip.	Miles	0 – 2000+
Per-Mile Rate	State-set compensation for vehicle expenses.	USD ($) per mile	$0.30 – $0.40
Actual App Earnings	Base pay from the app, excluding tips.	USD ($)	Varies widely

Practical Examples

Example 1: Full-Time Rideshare Driver

A driver in Los Angeles (local minimum wage $16.78) works a busy two weeks.

• Inputs:
  • Engaged Hours: 85
  • Engaged Miles: 1,500
  • Actual App Earnings: $2,000
  • Customer Tips: $450
  • Local Minimum Wage: $16.78/hr
  • Per-Mile Rate: $0.35/mile
• Calculation:
  • Time Guarantee: 85 hours * $16.78/hr * 1.20 = $1,711.56
  • Mileage Guarantee: 1,500 miles * $0.35/mile = $525.00
  • Total Guaranteed Minimum: $1,711.56 + $525.00 = $2,236.56
  • Prop 22 Top-Up: $2,236.56 – $2,000 = $236.56
• Result: The driver is owed a $236.56 top-up payment. Their total earnings for the period would be $2,000 (base) + $236.56 (top-up) + $450 (tips) = $2,686.56.

Example 2: Part-Time Food Delivery Driver

A driver in San Francisco (local minimum wage $18.07) does food delivery on weekends. Understanding their side hustle tax implications is also wise.

• Inputs:
  • Engaged Hours: 20
  • Engaged Miles: 250
  • Actual App Earnings: $500
  • Customer Tips: $120
  • Local Minimum Wage: $18.07/hr
  • Per-Mile Rate: $0.35/mile
• Calculation:
  • Time Guarantee: 20 hours * $18.07/hr * 1.20 = $433.68
  • Mileage Guarantee: 250 miles * $0.35/mile = $87.50
  • Total Guaranteed Minimum: $433.68 + $87.50 = $521.18
  • Prop 22 Top-Up: $521.18 – $500 = $21.18
• Result: The driver receives a $21.18 top-up payment.

How to Use This Prop 22 Calculator

Using this calculator is a straightforward process. Follow these steps to accurately estimate your earnings:

1. Enter Engaged Hours: Find your total “Engaged Time” or “Active Hours” in your app’s earnings summary for the two-week period. Enter this value.
2. Enter Engaged Miles: Similarly, find your total “Engaged Miles” for the period and input the number.
3. Enter Actual Earnings: Input your total earnings from fares and promotions for the period. CRITICAL: Do not include tips in this number. The prop 22 calculator compares against base pay only.
4. Enter Tips (Optional): Add your tips to calculate your total take-home pay. This doesn’t affect the top-up calculation but is useful for a complete picture.
5. Adjust Minimum Wage: The calculator defaults to a common rate. Adjust this to the minimum wage for the city where you do most of your driving for a more precise result.
6. Click Calculate: The tool will instantly show your guaranteed minimum, your potential top-up payment, and your total effective earnings. For long-term planning, consider how this income fits into your budget with a budget planner.

Key Factors That Affect Prop 22 Earnings

Several factors can influence your final Prop 22 payment. Understanding them helps you maximize your earnings.

• Local Minimum Wage: The higher the local minimum wage where a trip starts, the higher your time-based guarantee. Driving in cities with higher wages directly increases your guaranteed floor.
• Engaged Hours vs. Online Hours: Only “Engaged Time” (from acceptance to completion) counts. Time spent waiting for a trip request does not. High utilization (more engaged time) leads to higher guarantees.
• Trip Distance (Engaged Miles): The mileage component of the guarantee directly rewards drivers who take longer trips. More miles driven while on a trip means a higher expense reimbursement.
• App’s Base Pay Rates: If an app’s standard fares are already high, you may earn more than the Prop 22 minimum on your own, resulting in a $0 top-up. A top-up only occurs when base pay is low.
• Promotions and Bonuses: App-based promotions (excluding tips) count towards your earnings. If you earn a lot in bonuses, it reduces the likelihood of needing a Prop 22 top-up.
• Number of Trips: More short trips can sometimes lead to less engaged time compared to fewer long trips, even if you’re online for the same duration. This can affect the time-based portion of your guarantee.

Managing these factors is key. You might use a investment calculator to see how extra earnings could grow over time.

Frequently Asked Questions (FAQ)

What is “engaged time”?

Engaged time, or active time, is the duration from when you accept a ride or delivery request until you complete it. Time spent online waiting for a request does not count.

Are customer tips included in the Prop 22 calculation?

No. Tips are entirely separate and do not count towards the guaranteed minimum. You receive 100% of your tips on top of your earnings and any Prop 22 payment.

Does this prop 22 calculator work for all apps?

Yes, the Prop 22 law applies to all qualifying app-based transportation and delivery network companies in California. The formula is the same for Uber, Lyft, DoorDash, Instacart, etc.

What if I drive in multiple cities with different minimum wages?

The companies are required to calculate the guarantee based on the minimum wage applicable to where each specific trip began. For an estimate, using the wage for the city where you do most of your driving is a good approach.

How often are Prop 22 payments made?

The calculation is done over a two-week earnings period. If a top-up payment is due, it’s typically paid out on the following weekly pay statement.

Why is the mileage rate in the calculator adjustable?

The state of California adjusts the per-mile compensation rate annually to account for inflation and gas/maintenance costs. We allow you to adjust it for maximum accuracy, though we set the default to the current known rate.

What happens if my actual earnings are higher than the guarantee?

If you already earned more than the Prop 22 minimum through your base fares and promotions, then your top-up payment will be $0. You simply keep your higher earnings.

Is the Prop 22 payment taxable income?

Yes, any earnings from app-based work, including base pay, promotions, and Prop 22 top-up payments, are considered taxable income. A tax calculator can help you estimate your obligations.