Short answer
Your side hustle is profitable if the money it brings in is more than everything it costs, including stock, transport, data, fees, and tools. Add up one full month of income and one full month of costs for that hustle alone; if income minus costs is positive, it's profitable. Then divide the profit by the hours you spent to see if it's worth your time.
Being busy isn't the same as being profitable. Plenty of side hustles bring in steady money while quietly costing almost as much to run.
Step 1: Add up a month of income
Total everything the hustle earned in one month. Count money you've actually received, not money you're still owed.
Step 2: Add up a month of costs
Include every cost that exists because of this hustle:
- Stock, materials, or supplies
- Transport and delivery
- Data and airtime used for the business
- Packaging
- Platform, bank, and payment fees
- Tools, subscriptions, and equipment
Step 3: Subtract
Income minus costs is your profit. If you earned ₦200,000 and spent ₦140,000, your profit is ₦60,000. See how to calculate profit for more detail.
Step 4: Check your profit per hour
If that ₦60,000 took 60 hours, you earned ₦1,000 an hour. Compare that with your other options. A hustle can be profitable on paper and still not be worth the time, and if your hourly profit is low, it may be time to rethink how much you charge.
Step 5: Watch the trend
One month can be a fluke. Compare three months side by side. Rising profit is a good sign; shrinking profit is a warning, even if sales look healthy. See also how to know if your side hustle is actually making money.
Doing this in Gripd
Gripd tracks each hustle's income and expenses separately and shows what's left after expenses, so profit is always one glance away. You can compare hustles side by side to see which one is really carrying you.
Last updated 29 Sept 2026
Related questions
How do I calculate profit for my small business?
Profit equals your total income minus your total costs for the same period. To get your profit margin, divide profit by income and multiply by 100. For example, ₦500,000 in sales with ₦350,000 in costs gives ₦150,000 profit and a 30% margin.
Read the full answerHow do I know which side hustle is making me the most money?
Track each side hustle's income and expenses separately for at least one full month, then compare their profits, not their sales. The hustle with the highest profit, and ideally the highest profit per hour, is the one making you the most money. The busiest hustle often isn't the most profitable one.
Read the full answerHow do I separate business and personal money?
Give your business money its own home, ideally a separate account or wallet, and pay all business income into it and all business costs out of it. When you need money for personal use, move a set amount across as a deliberate payment to yourself. Even without a second account, recording business and personal money separately keeps the two from blurring.
Read the full answerHow much should I pay myself from my business?
Pay yourself from profit, not from sales, and start with a fixed amount you can afford even in a slow month. A common approach is to take a set share of each month's profit, often around half, and leave the rest in the business for stock, emergencies, and growth. Pay yourself on a regular schedule so personal spending doesn't drain the business.
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