Whether you can comfortably live on $18 an hour depends a lot on a number of factors, including where you live, lifestyle, financial obligations, and family size.
Now let’s do the math. How much is $18 an hour per year? What about month by month, week by week, day by day? How much do you have left after taxes?
Is $18 an hour the difference between a freelancer and a W-2 employee at a company? Let’s take a closer look at these questions and how well you’re doing with your $18 an hour job.
How much is $18 per hour per year?
Let’s assume you work full time. That means I work 8 hours a day, 5 days a week, 52 weeks a year (including paid time off). Using simple multiplication, we can calculate the total amount of $18 per hour for each period.
- every day: $18 x 8 hours = $144 per day
- Weekly: $144 per day x 5 days = $720 per week
- monthly: $720 per week x 4.33 (average weeks per month) = $3,117.6 per month
- Annually: $720 per week x 52 weeks = $37,440 per year
These are all gross and represent income before taxes are deducted. Your specific tax rate depends on where you live, whether you file jointly or separately, and what deductions you are entitled to. In general, 25% is a good rule of thumb for estimating federal and state taxes.
Using that 25% figure, we can multiply the previous number by the remaining 75% to calculate the after-tax take-home pay you can expect to earn if you earn $18 an hour.
- every day: $128 x 75% = $108 Takeaway
- Weekly: $720 x 75% = $540 take home
- monthly: $3117.6 x 75% = $2338.2
- Annually: $37440 x 75% = $28080
The US Tax Calculator will give you a more specific estimate of your expected taxes. Note that if you’re earning $18 an hour as a freelancer, you’ll end up paying even more in FICA tax, as it’s all your responsibility, not your employer’s. . Personally, I usually save about a third of my income because of this.
Is $18 an hour a good salary?
Will $18 an hour be a decent, liveable wage in 2023? The answer here is both simple and complex. it depends.
The biggest factor is simply where you live. If you are a digital nomad who lives in Thailand and he earns US$18, you can live in luxury in a penthouse apartment.
If you live in a cheap part of Mississippi, you can probably afford a mortgage to buy a decent house. But if you live in a city like New York or San Francisco, $18 an hour could probably get her a closet with six roommates.
Let’s look at an example monthly budget for someone earning $18 an hour. Housing is one of your biggest expenses, so start there by using the rule of thumb that you shouldn’t spend more than 30% of your total monthly income on housing.
Also, budget 15% for savings. You can always save more if you can, but think of savings and investments as a priority, not just “what’s left over after spending”. It’s the money you pay your future self to make your life better.
Monthly net income: $2,338
Depending on where you live, a budget of this magnitude may seem very feasible, or you may feel that there isn’t much room for change. If you’re a dual income household, it’s much easier to afford and save on everything.
Two people, each working full-time and earning $18 an hour, have a net take-home pay of $4,676.4. This amount is enough to live comfortably in most places.
Are you looking to make $18 an hour as high as possible to live a prosperous life and increase your savings rate? With enough determination, it’s all possible!check these out how to save money.
If you’re forced to cut your budget for now and can’t find work that pays more than $18 an hour, consider supplementing your work with a side job in the evenings or on weekends. This is as easy as taking a survey. swag backs Whether it’s watching TV, walking the dog in the Rover on a Saturday morning, or starting your own business. Check out some low cost small business ideas here.
TL;DR: If you just want a short answer, How much is $18 an hour per year?Answer: $37,440 before tax.
