How Much Do Formula 1 Drivers Earn in 2024?

Formula 1 racing is one of the world’s most prestigious and thrilling sports, with millions of fans watching every race. Alongside the fame and excitement, F1 drivers also command some of the highest salaries in sports. With contracts often shrouded in secrecy, the exact figures aren’t always disclosed, but estimates from various sources offer insight into the impressive earnings of these elite athletes. Let’s look at how much F1 drivers make in 2024.

Base Salaries of F1 Drivers

F1 driver salaries vary widely depending on the driver’s experience, team, and performance. For 2024, according to Spotrac, Max Verstappen, the reigning world champion, is the highest-paid driver, with an estimated annual salary of $55 million​. This figure represents his base salary, excluding performance bonuses and endorsements.

Other top earners include Lewis Hamilton, who has long been a fixture at the top of the salary charts. In 2024, Hamilton earns $45 million from his contract with Mercedes​. Charles Leclerc, the lead driver for Ferrari, has also seen a significant salary bump, now earning $34 million​. Meanwhile, Lando Norris remains highly competitive and commands $20 million. Below are some other notable salaries on the 2024 grid:

• Sergio Pérez (Red Bull Racing) – $14million
• Carlos Sainz (Ferrari) – $12 million
• Valtteri Bottas (Stake F1 Team) – $10 million​.

While these salaries seem enormous, they are just the starting point. Many drivers also earn significant amounts from performance bonuses and sponsorships.

Performance Bonuses and Incentives

Performance-based bonuses have an essential impact on a driver’s total earnings. Drivers can earn additional income depending on their season success, which includes race wins, podium finishes, and overall championship standings. These bonuses are often negotiated into contracts and can dramatically increase a driver’s pay.

For example, Lando Norris, who earns a base salary of $5 million, reportedly boosts his earnings to $15 million through performance-based bonuses​. Similarly, with a base salary of $4 million, George Russell increases his total earnings to $9 million through bonuses​. Performance incentives push drivers to perform at their best throughout the season.

An interesting historical case is that of Kimi Räikkönen, who, in 2012, negotiated a contract with Lotus that included a €50,000 per point bonus. This clause was triggered far more than expected, resulting in a massive additional payout​.

Sponsorships and Endorsements

In addition to their base salaries and bonuses, top F1 drivers also earn significant income from sponsorship deals and endorsements. These off-track deals can sometimes eclipse a driver’s on-track earnings. Lewis Hamilton, for example, enjoys lucrative endorsement deals with brands such as Mercedes-Benz, Tommy Hilfiger, and Monster Energy. This has helped him secure a spot among Forbes’ list of highest-paid athletes​.

Hamilton isn’t alone in capitalizing on his global fame. Max Verstappen also has significant brand endorsements that contribute to his income. Beyond that, drivers like Lando Norris have branched out into other ventures, such as Norris’ role as the CEO of his entertainment company, Quadrant​.

F1 Salaries Compared to Other Sports

The numbers hold up remarkably well when we compare F1 drivers’ earnings to athletes in other top sports like football, basketball, or tennis. In 2024, Max Verstappen’s estimated $70 million salary puts him in a similar earnings bracket to superstars in other sports, such as Lionel Messi and LeBron James, who also command salaries in the tens of millions​.

However, what makes F1 unique is the added complexity of performance bonuses and sponsorships, which allow top drivers to rival or even surpass athletes from other disciplines when it comes to total earnings. Forbes regularly lists Verstappen and Hamilton among the world’s highest-paid athletes​.

The Impact of the Budget Cap

In 2021, Formula 1 introduced a budget cap to reduce costs and create a more level playing field among teams. Initially set at $145 million per season, the cap has been reduced over time and is set at $135 million for 2024. However, driver salaries are crucially exempt from the budget cap, allowing teams to spend freely on securing top talent​.

This exemption has helped drivers like Verstappen and Hamilton command massive salaries without affecting the overall team budget. Other areas excluded from the budget cap include marketing costs and team principals’ salaries, ensuring the highest-paid employees in F1 are well-compensated despite the cost constraints​.

Salaries of Lower-Tier Drivers

While top drivers like Verstappen and Hamilton earn staggering sums, not all F1 drivers are paid equally. At the other end of the spectrum, rookie or mid-tier drivers earn significantly less. For example, Yuki Tsunoda and Logan Sargeant, considered rising stars in F1, are estimated to earn around $1 million annually​.

Drivers like Nico Hülkenberg and Zhou Guanyu earn slightly more, with salaries of $2 million​. These figures are still substantial but pale in comparison to the top earners. Additionally, many lower-tier drivers rely on sponsorship deals or personal backers to supplement their income, as their contracts often do not include significant performance bonuses.

The Future of F1 Driver Salaries

As Formula 1 continues to grow in global popularity—boosted by the rise of streaming services and shows like Drive to Survive—driver salaries will likely increase further. The sport’s expansion into the U.S. market has drawn new fans and brought more lucrative sponsorship deals​. This, combined with rising viewership figures globally, suggests that high earnings for top F1 drivers could climb even higher.

Experts predict that the sport’s growing exposure in markets like the U.S. will create even more opportunities for drivers to secure lucrative endorsement deals, further enhancing their total earnings​.

Conclusion

Formula 1 drivers are among the highest-paid athletes in the world, with top drivers like Max Verstappen and Lewis Hamilton earning tens of millions of dollars annually. Their salaries, performance bonuses, sponsorships, and endorsements make F1 a highly lucrative sport for its top competitors. While lower-tier drivers earn significantly less, the earning potential in Formula 1 is enormous. With the sport’s growing global appeal, F1 salaries will likely continue to rise in the coming years.