How Much Does an Indy Car Driver Make

Indy car drivers earn anywhere from $100,000 to over $5 million per year, depending on experience, team, and performance. While top stars like Josef Newgarden and Scott Dixon rake in millions, rookies and part-time drivers often make far less. Sponsorships and prize money play a huge role in total income.

So, you’ve always wondered how much an Indy car driver makes. Maybe you’ve watched the Indianapolis 500 on TV, seen the roaring engines, the lightning-fast pit stops, and the champagne showers—and thought, “That looks amazing. But do they actually get paid well?” The short answer? It depends. A lot.

Indy car drivers don’t all earn the same. In fact, the pay gap between the top earners and the newcomers is massive. While some drivers are pulling in millions each year, others are barely scraping by. It’s not just about speed—it’s about reputation, team backing, sponsorships, and results. Think of it like professional sports: the star players get the big contracts, while the backups and rookies fight for playing time and paychecks.

But here’s the thing: even the “lower-paid” IndyCar drivers are still earning well above the average American salary. So while not every driver is a millionaire, most are living comfortably—especially when you factor in bonuses, prize money, and brand deals. In this guide, we’ll break down exactly how much Indy car drivers make, what affects their income, and what it really takes to earn a living at 230 mph.

Key Takeaways

• Salaries vary widely: Top-tier IndyCar drivers can earn $3–$5 million annually, while rookies may start at $100,000 or less.
• Prize money boosts income: Winning the Indianapolis 500 can net a driver over $2 million, with smaller races offering six-figure payouts.
• Sponsorships are crucial: Many drivers earn more from endorsements than race winnings—some deals exceed $1 million per year.
• Team affiliation matters: Drivers with top teams like Team Penske or Chip Ganassi Racing earn significantly more than those with smaller outfits.
• Experience pays off: Veterans with proven records command higher base salaries and better sponsorship opportunities.
• Part-time roles pay less: Drivers who only compete in select races earn far less than full-season competitors.
• Bonuses add up: Performance incentives for poles, wins, and championship points can increase total earnings by 20–50%.

How IndyCar Driver Salaries Are Structured

Unlike some sports where players have fixed contracts with guaranteed money, IndyCar driver pay is a mix of base salary, performance bonuses, prize money, and sponsorship income. There’s no league-wide salary cap or standardized pay scale, which means earnings can vary dramatically from one driver to the next.

Most drivers sign contracts with racing teams that outline a base salary for the season. This is the guaranteed amount they’ll earn just for showing up and competing. But that’s only part of the story. Teams often include performance-based incentives—like bonuses for winning races, earning pole positions, or finishing in the top five. These can significantly boost a driver’s total income.

For example, a driver might have a base salary of $500,000 but earn an extra $50,000 for each race win. If they win five races in a season, that’s an additional $250,000. Add in prize money from the races themselves, and the total can easily surpass $1 million.

Base Salaries vs. Total Earnings

It’s important to distinguish between a driver’s base salary and their total earnings. The base salary is what the team pays them directly. But total earnings include everything: prize money, bonuses, appearance fees, and especially sponsorships.

Take Josef Newgarden, one of the top earners in IndyCar. His base salary with Team Penske is rumored to be around $3 million per year. But when you add in his win bonuses, championship points payouts, and sponsorship deals with companies like NTT and Firestone, his total income likely exceeds $5 million annually.

On the other end of the spectrum, a rookie driver with a smaller team might earn a base salary of $150,000. If they don’t win any races or attract major sponsors, their total income could be just $200,000–$300,000 for the year. That’s still a solid living, but it’s a far cry from the millions earned by the stars.

The Role of Prize Money

Prize money is a huge part of an Indy car driver’s income—especially in marquee events like the Indianapolis 500. The winner of the Indy 500 doesn’t just get a trophy; they take home a multi-million-dollar check. In 2023, the winner received over $2.5 million, with the entire purse exceeding $17 million shared among the field.

Even drivers who don’t win can earn big. Second place typically gets around $1 million, and drivers finishing in the top 10 can still pocket $300,000 or more. Smaller races offer smaller purses, but winning a race like the Grand Prix of Long Beach or Road America can still net a driver $200,000–$400,000.

This means that a single strong performance can dramatically increase a driver’s annual income. It’s not uncommon for a driver to earn more from one race than they do from their entire base salary.

Top Earners in IndyCar: Who Makes the Most?

So who are the highest-paid Indy car drivers? While exact figures are often kept private, industry insiders and financial reports give us a good idea.

At the top of the list is Scott Dixon, the six-time IndyCar champion. Driving for Chip Ganassi Racing, Dixon is believed to earn a base salary of $3–$4 million per year. Add in his consistent top finishes, championship bonuses, and long-term sponsorships with Honda and others, and his total income likely exceeds $5 million annually.

Josef Newgarden, the 2023 IndyCar Series champion, is another top earner. With Team Penske, he commands a similar salary and has built a strong personal brand that attracts major sponsors. His aggressive driving style and media presence make him a favorite among fans and advertisers alike.

Other high earners include Will Power, Alexander Rossi, and Pato O’Ward. Power, a two-time champion with Team Penske, earns around $2.5–$3 million in base salary. Rossi, known for his Indy 500 win and strong social media following, leverages his popularity into lucrative endorsement deals. O’Ward, a rising star with Arrow McLaren, is quickly climbing the earnings ladder thanks to his on-track success and marketability.

How Team Affiliation Affects Pay

One of the biggest factors in how much an Indy car driver makes is the team they drive for. Top-tier teams like Team Penske, Chip Ganassi Racing, and Arrow McLaren have bigger budgets, better equipment, and stronger sponsorship networks. This allows them to pay their drivers more and offer better performance bonuses.

For example, a driver with Team Penske is more likely to win races and earn prize money than a driver with a smaller, underfunded team. That success translates into higher earnings across the board—not just in salary, but in bonuses and sponsorship opportunities.

Smaller teams, like Dale Coyne Racing or A.J. Foyt Enterprises, often operate on tighter budgets. Their drivers may earn significantly less, even if they’re talented. These teams rely more on driver funding—meaning the driver brings sponsorship money to the team in exchange for a seat. In some cases, the driver pays the team to race, rather than the other way around.

The Impact of Sponsorships on Driver Income

If you’re wondering how some Indy car drivers afford their lavish lifestyles, look no further than sponsorships. In fact, for many drivers, sponsorship income outweighs their race winnings and salary combined.

Sponsorships come in many forms. Some drivers have title sponsors—companies that pay millions to have their logo on the car, driver suit, and helmet. Others have multiple smaller sponsors that cover parts, fuel, tires, or even travel expenses.

For example, Alexander Rossi’s car is sponsored by NTT, a major tech company. That deal is worth several million dollars over multiple years. In return, NTT gets massive exposure during races, TV broadcasts, and social media promotions.

Drivers also earn money from personal endorsements. They might appear in commercials, promote products on Instagram, or do speaking engagements. A driver with a strong social media following—like Pato O’Ward, who has over 1 million Instagram followers—can charge tens of thousands of dollars per sponsored post.

How Drivers Attract Sponsors

So how do drivers land these lucrative deals? It’s not just about speed. Sponsors want visibility, fan engagement, and a positive image.

Drivers with a clean record, strong fan base, and media presence are more attractive to sponsors. They’re also more likely to be featured in interviews, documentaries, and promotional content—giving sponsors more bang for their buck.

Social media plays a huge role. Drivers who post behind-the-scenes content, interact with fans, and share personal stories build stronger connections. This makes them more valuable to brands looking to humanize their image.

Performance matters too. A driver who wins races and contends for championships gets more airtime and attention. That means more exposure for their sponsors.

Examples of Major Sponsorship Deals

Let’s look at a few real-world examples:

– **Josef Newgarden** is sponsored by NTT, Firestone, and Chevrolet. These deals are worth millions annually and include appearances, media obligations, and branding on his car and gear.
– **Scott Dixon** has long-term partnerships with Honda and Castrol. These relationships are built on trust and performance, and they provide steady income beyond race winnings.
– **Pato O’Ward** partners with companies like Arrow Electronics and Puma. His youthful energy and international appeal make him a favorite among global brands.

These sponsorships don’t just pay the bills—they fund entire racing careers. For many drivers, especially those without top-tier team contracts, sponsorships are the key to staying in the sport.

Rookie and Part-Time Driver Earnings

Not every Indy car driver is a household name or a millionaire. In fact, many drivers start their careers earning far less than the stars.

Rookie drivers—those new to the IndyCar Series—often earn between $100,000 and $300,000 per year. This includes a modest base salary and any prize money they earn. Some rookies bring their own sponsorship money to secure a seat, which can offset costs but doesn’t necessarily increase their take-home pay.

Part-time drivers—those who only compete in a few races per season—earn even less. They might make $50,000 to $150,000, depending on the races they enter and their results. These drivers often have other jobs or racing commitments outside of IndyCar.

The Reality of Racing on a Budget

For many drivers, especially those with smaller teams, racing is a financial challenge. Travel, equipment, and team salaries are expensive. Drivers often have to fundraise, seek investors, or rely on family support to stay competitive.

Some drivers even pay to race. This is common in lower-tier racing series, but it can happen in IndyCar too—especially for drivers trying to break into the series. They bring sponsorship money to a team in exchange for a seat, effectively paying their way onto the grid.

While this can be a path to opportunity, it’s not sustainable long-term. Most successful drivers eventually earn enough through performance and sponsorships to stop paying their way and start making a profit.

Tips for Aspiring Drivers

If you’re dreaming of becoming an Indy car driver, here are a few practical tips:

– **Build a strong personal brand.** Start early with social media, fan engagement, and media training.
– **Seek sponsorships.** Even small local businesses can help fund your early career.
– **Race in lower series.** Gain experience in USF2000, Indy Pro 2000, and Indy Lights to build your resume.
– **Network with teams and sponsors.** Attend races, join racing organizations, and make connections.
– **Focus on consistency.** Sponsors and teams value reliability as much as speed.

Remember, most Indy car drivers didn’t start at the top. They worked their way up through talent, persistence, and smart financial planning.

How the Indianapolis 500 Affects Earnings

The Indianapolis 500 is the crown jewel of IndyCar racing—and it’s also the biggest payday of the year. Winning the race can transform a driver’s career, both financially and reputationally.

In 2023, the total purse for the Indy 500 was over $17 million. The winner took home more than $2.5 million, with the rest distributed among the other drivers based on finishing position. Even drivers who didn’t finish in the top 10 earned six figures.

But the financial impact goes beyond the prize money. Winning the Indy 500 boosts a driver’s marketability, leading to better sponsorship deals, higher appearance fees, and more media opportunities. It’s not uncommon for a driver’s income to double or triple in the year after a big win.

Historical Payouts and Trends

Prize money for the Indy 500 has grown significantly over the years. In the 1970s, the winner might have taken home $100,000. By the 1990s, that number had climbed to over $1 million. Today, it’s well over $2 million.

This growth reflects the increasing popularity of the race, higher TV ratings, and bigger sponsorship investments. As the sport grows, so do the financial rewards for drivers.

Other High-Paying Races

While the Indy 500 is the biggest, other races also offer substantial payouts. Events like the Grand Prix of Long Beach, the Honda Indy Toronto, and the Acura Grand Prix of Long Beach often have purses exceeding $1 million. Winning one of these races can earn a driver $200,000–$400,000.

Consistency across the season also pays off. The IndyCar Series champion receives a significant bonus—often $1 million or more—on top of their race winnings and salary.

The Future of IndyCar Driver Earnings

As IndyCar continues to grow in popularity, driver earnings are likely to increase. The series has seen rising TV ratings, expanded international reach, and new partnerships with major brands.

The introduction of the hybrid engine formula in 2024 is expected to attract more manufacturers and sponsors, potentially increasing team budgets and driver salaries. More competition means more investment—and more money flowing into the sport.

Additionally, the rise of streaming platforms and social media is giving drivers new ways to monetize their brand. Drivers who build strong online followings can earn income through content creation, merchandise sales, and digital sponsorships.

Challenges Ahead

Despite the positives, challenges remain. The cost of racing is still high, and not all teams can afford to pay top dollar. Economic downturns, sponsor pullouts, and competition from other racing series (like Formula 1) can impact earnings.

Drivers also face physical and mental risks. Injuries can sideline them for months, cutting off income. The pressure to perform can lead to burnout.

But for those who make it, the rewards are substantial. With the right combination of talent, team support, and sponsorship, an Indy car driver can build a lucrative and exciting career.

Conclusion

So, how much does an Indy car driver make? The answer isn’t simple. Top drivers like Scott Dixon and Josef Newgarden earn $3–$5 million per year, while rookies and part-time drivers might make $100,000–$300,000. The real money comes from a mix of salary, prize money, bonuses, and sponsorships.

Success in IndyCar isn’t just about speed—it’s about strategy, branding, and relationships. Drivers who perform well, attract sponsors, and align with top teams have the best chance of earning a life-changing income.

For aspiring racers, the path is tough but rewarding. With dedication, smart financial planning, and a bit of luck, you too could be racing at 230 mph—and earning a great living while doing it.

Frequently Asked Questions

Do all Indy car drivers get paid the same?

No, Indy car driver pay varies widely. Top drivers earn millions, while rookies and part-time drivers may make under $200,000. Salaries depend on team, performance, and sponsorships.

Can a driver make money without winning races?

Yes. Drivers earn from base salaries, appearance fees, sponsorships, and prize money for top finishes. Even consistent top-10 finishes can lead to solid income.

Do drivers pay to race in IndyCar?

Sometimes. Some drivers, especially rookies, bring sponsorship money to teams to secure a seat. This is called “paying to play,” but it’s less common at the top level.

How much does the Indy 500 winner make?

The winner of the Indianapolis 500 typically earns over $2 million, with the total purse exceeding $17 million shared among all drivers.

Do Indy car drivers get health insurance?

Most drivers receive health benefits through their racing teams or personal contracts. However, coverage varies by team and sponsorship agreements.

Can female drivers earn as much as male drivers in IndyCar?

Top female drivers like Simona de Silvestro and Pippa Mann have earned competitive salaries and sponsorships, but gender pay gaps still exist. Visibility and performance are key to closing the gap.