A clinic 75 minutes away offers you $900 for a 10-hour day. Another clinic 20 minutes away offers $750. Which one should you take?
If you answered the $900 shift, you might be wrong. And that's the problem — most relief vets make scheduling decisions based on gross day rates without accounting for the true cost of each shift.
Let's fix that.
Breaking Down a Real Shift
Let's take that $900 shift and calculate what you actually earn.
The Gross Pay
$900 — that's what shows up on the invoice. It looks great. But this is where most relief vets stop doing the math.
Subtract the Drive
The clinic is 75 minutes each way. That's 2.5 hours of unpaid travel time. At the IRS standard mileage rate of $0.70/mile, the round trip costs:
- Round trip distance: 120 miles
- Mileage deduction: 120 × $0.70 = $84
But the mileage deduction only reduces your taxable income — it doesn't put cash back in your pocket. The actual out-of-pocket costs matter more:
- Gas: approximately $30 (120 miles at roughly $0.25/mile for fuel)
- Tolls: $12 (if applicable)
Running total: $900 - $42 out-of-pocket = $858
Subtract Meals
You're gone for 13+ hours. You grabbed coffee on the way ($6) and lunch near the clinic ($18).
- Meals: $24
Running total: $858 - $24 = $834
Subtract the Tax Set-Aside
As an independent contractor, you need to set aside money for:
- Federal income tax: ~22% (varies by bracket)
- Self-employment tax: 15.3% (Social Security + Medicare)
- State income tax: ~5% (varies by state)
The combined effective rate for most relief vets is roughly 30% of net income.
- Tax set-aside: $834 × 0.30 = $250
Running total: $834 - $250 = $584
Your Actual Take-Home: $584
From a $900 day rate, you take home approximately $584. That's a 35% reduction from the headline number.
Now Calculate Your Real Hourly Rate
Here's where it gets uncomfortable. Your shift was 10 hours, but you also spent 2.5 hours driving. Your total time investment was 12.5 hours.
Real hourly rate: $584 ÷ 12.5 = $46.72/hour
Compare that to the $90/hour you might have calculated from the gross rate ($900 ÷ 10 hours). The real number is almost half.
