F1 driver salaries explained

by Dan Holmes, June 16, 2025

How Much Do F1 Drivers Make in 2025? That depends on track performance, as well as popularity and sponsorship deals. In some cases, millions of dollars are changing hands for the daring drivers in Formula One, or the F1 circuit.

In 2025, asking “How much do F1 drivers make?” is like asking how much a poet earns—except the poet doesn’t risk flipping upside down at 200 mph. Formula 1 driver salaries vary as wildly as a race in the rain. On one end of the paddock, you’ve got superstars pocketing tens of millions. On the other, rookies might earn less than the engineers keeping their cars in one piece.

To be precise, F1 driver salaries range from around $750,000 for the lowest paid F1 driver to well over $55 million for the highest paid F1 drivers like Max Verstappen and Lewis Hamilton. These numbers, of course, often exclude lucrative bonuses and personal sponsorships that can balloon their income to dizzying heights.

The Highest Paid F1 Drivers of 2025

Let’s talk aristocracy. In the monarchy of motorsport, these are your kings:

Max Verstappen (Red Bull): Estimated at $55–60 million
Lewis Hamilton (Ferrari): Around $50 million
Charles Leclerc (Ferrari): $40+ million
Lando Norris (McLaren): Mid-$20 millions

These drivers are not just racers—they’re global brands. With performance clauses, title bonuses, and backroom perks, their Formula 1 drivers salary packages look more like investment portfolios.

The Lowest Paid F1 Driver: Still a Sweet Gig?

If you’re the lowest paid F1 driver, say a rookie at Haas or a reserve stand-in at Williams, you might earn around $750,000 to $1 million. Now, don’t cry into your gas station coffee—this is still a dream job. But the gap between top-tier and entry-level drivers is substantial, and team budgets make all the difference.

What Determines a Formula 1 Driver’s Salary?

Formula 1 is an economic tightrope walk. Drivers get paid based on:

Experience and Championships: Title winners cash in big.
Team Budget and Prestige: Mercedes can afford more than AlphaTauri.
Marketability: A charismatic driver with a million Instagram followers has extra leverage.
On-track Performance: Fast laps and podiums translate to dollar signs.

“Faster, faster, until the thrill of speed overcomes the fear of death,” said the legendary Hunter S. Thompson. That thrill? It comes with a price tag.

Beyond the Base Salary: Bonuses and Branding

Think of base salary as the pit lane—solid, necessary, but not where the magic happens. Drivers often double or triple their income through:

Win Bonuses
World Championship Bonuses
Sponsorship Deals (e.g. Puma, Monster, Tommy Hilfiger)
Personal Brand Collaborations (watch lines, merchandise, NFTs)

Sebastian Vettel once said, “Money is not everything. There’s MasterCard & Visa.” The point? Even the best still chase performance bonuses.

How Contracts Are Negotiated

Negotiations are chess matches played at 200 mph. They involve agents, lawyers, team principals, and occasionally, last-minute drama. Contracts usually last 2–3 years with performance clauses and the ever-present exit clause if a better opportunity arises.

Performance vs. Pay: Is It Aligned?

Not always. Formula 1 has seen highly paid veterans outpaced by hungry rookies on modest deals. It’s a meritocracy—until it isn’t. But usually, winning earns you the kind of money that makes accountants blush.

Where the Money Comes From

Teams (backed by major manufacturers or billionaires)
Sponsorships (on everything from gloves to garage doors)
F1 Itself (revenue sharing and bonuses)

Want to put your money where the rubber meets the road? See our guide to F1 online betting apps.

Top Prize Money Events in F1 Racing

While individual Formula 1 races are prestigious, the big money isn’t directly tied to a single Grand Prix having a specific “prize pool” for drivers. Instead, the financial structure revolves around how money is distributed to the teams. Here’s how it generally works:

How F1 Prize Money Works

Revenue Distribution: Formula 1 generates revenue from various sources, including race hosting fees, broadcasting rights, and sponsorships. A significant portion of this revenue is then distributed to the F1 teams.

Constructors’ Championship: The primary way teams earn money is based on their position in the Constructors’ Championship standings at the end of the season. The higher a team finishes, the larger its share of the revenue.

Historical Bonuses: Some teams, like Ferrari, receive additional payments based on their historical significance and participation in F1.

Performance-Based Payments: A portion of the revenue might be distributed based on past performance over a set period (e.g., the last few years).

How Drivers Benefit

Salaries and Bonuses: Drivers themselves don’t directly get prize money from race wins. Instead, they receive a base salary from their team. However, their contracts often include performance-related bonuses. These bonuses can be tied to:

Race wins
Podium finishes
Championship points
Overall championship position

Team Performance: Since a team’s financial health depends on its Constructors’ Championship finish, a driver’s performance directly impacts the team’s earnings. This, in turn, can influence the team’s ability to invest in car development, pay driver salaries, and attract top talent.

Are Some Races More Important Financially?

While not in terms of a direct prize pool, some races are more commercially valuable to F1 as a whole. These high-profile races attract more viewers, sponsors, and media attention, which indirectly contributes to the overall revenue that is eventually distributed to the teams. Examples include:

Monaco Grand Prix: A prestigious and glamorous event with high viewership.
British Grand Prix: A historic race with a large and passionate fanbase.
Italian Grand Prix: Another historic race, home to Ferrari and very popular.

United States Grand Prix (especially in Austin and Las Vegas): Growing in popularity, these races attract significant commercial interest.

Drivers earn through salaries and bonuses tied to their performance, while teams earn the bulk of their income from the distribution of F1’s overall revenue, primarily based on their Constructors’ Championship finish. High-profile races contribute to F1’s overall commercial success, indirectly benefiting both teams and drivers.

F1 driver salaries are a cocktail of speed, talent, marketing savvy, and global fandom. The highest paid F1 drivers are walking conglomerates, while even the lowest paid F1 driver enjoys a rarefied lifestyle.

Formula 1 is a sport of margins—tenths of seconds, millimeters of clearance, and millions of dollars. And in this high-octane ecosystem, talent may get you in the door, but money? Money keeps the engine running.

Like the great Oscar Wilde said, “When I was young I thought that money was the most important thing in life; now that I am old, I know that it is.”