Money

Finally Answered: $18 an Hour Is How Much a Year?

Finally Answered: $18 an Hour Is How Much a Year?

It can be tough to calculate your weekly, monthly, and annual salary. You have to look at taxes and social security, hours per week, whether you are working full-time or part-time, and so on. People keep asking: $18 an hour is how much a year? Let’s dive in straight away and answer all your questions.

Full-Time Jobs

working

A working week of 40 hours equates to $37,440 per year if you earn $18 an hour.

Here is how to calculate that number:

40 hours per week multiplied by 52 weeks in a year is 2,080 hours. Next, multiply 2,080 by $18 an hour, and you will get $37,440.

Of course, not everybody works 40 hours a week. In the United States, a full-time job can be anything between 30 and 40 hours per week.

So, if we take the lowest number into account, $18 an hour for a 30-hour working week equates to $28,080 per year.

In other words, the range of earnings — before taxes — for full-time jobs is between $28,080 and $37,440 per year at $18 an hour.

Part-Time Jobs

If you are working under 30 hours a week, that is considered to be a part-time job. Most often, part-time employees work between 20 and 29 hours.

$18 an hour is how much a year for part-timers? Between $18,720 if you calculate only 20 hours per week, and $27,144 if you calculate a working week of 29 hours.

All of these calculations are before taxes. And speaking of that…

$18 an Hour Is How Much a Year After Tax?

After Tax

On average, you will have to pay 15.1% of your income for federal taxes, social security, and medical insurance. If your state collects income tax, then that number is even higher.

That means that your net income — the money you keep after taxes — will be approximately:

$31,787 per year if you work 40 hours per week
$23,840 per year if you work 30 hours per week
$15,893 per year if you work 20 hours per week

(Here is how we arrived at these numbers: for example, 15.1% of $37,440 is 5,653. When you subtract it from the total number, you get the amount of $31,787.)

1. $18 an Hour Per Day

If you work 8 hours a day, you will earn $144 a day before taxes and approximately $122 after taxes.
For 5 hours a day at 18 dollars an hour, you would make $90 before tax and around $76 a day after tax.

2. $18 an Hour Weekly

Calculating for the whole week, for 40 hours worked you will earn $720 per week before tax and around $611 per week after tax.

25 hours a week would get you $450 per week before tax and about $382 after tax.

3. $18 an Hour Bi-Weekly

If you receive your salary every two weeks, these are the numbers for $18 an hour:

• $1,440 (before tax) or $1,222 (after tax) bi-weekly if you work 40 hours per week
• $900 (before tax) or $764 (after tax) bi-weekly if you work 25 hours per week

4. $18 an Hour Per Month

If you work full-time, for 40 hours a week, at 18 dollars an hour, you will gross $3,120 per month. After taxes, that would be around $2,649.

For part-timers who put in 25 hours a week, at $18 an hour, the gross sum is $1,950 per month and the net sum is approximately $1,655.

Is It Good Getting Paid 18 Dollars an Hour?

Is It Good Paying

Well, let’s put it this way: it’s above the minimum wage, so that is not bad. The federal minimum wage is $7.25 per hour. But you should be aware that many states also have their own minimum wage laws. You are entitled to the higher of the two minimum wages.

Depending on your life situation, where you live and what your job entails, $18 per hour can either be a decent salary or your employer could be underpaying you.

For students or part-timers who have another side hustle, this is not a bad income. Of course, a lot depends on whether you live in an expensive city where the cost of rent is high or you share a cheap apartment with some roommates in a smaller town. Are you still paying off your car or your student loans? If you have debts, $18 an hour won’t be enough.

Keep reading for some tips on how to live on 18 dollars an hour.

Living on $18 an Hour

Living on $18 an Hour

It’s hard to live on $18 an hour, but not impossible. If you can, try to implement one or more of the following tips:

1. Find an additional part-time or freelance job. This is the reality of today’s America. A lot of people work two or three jobs. Maybe you can find a side hustle or turn a hobby into a cash-earning opportunity.

2. Share the cost of living. This one depends on where you live, of course, but if you are single it’s easier to split the cost of rent and utilities with roommates. People in relationships should also share living costs according to their salaries.

3. Buy food as a group. If you have a family, you already do this, so this one applies to single people. Grab your roommates or your friends and make a plan to cook meals together and share food costs. Also, cooking at home is usually cheaper than eating out.

4. Use generic products. Cheaper generic products can be just as good and effective as more expensive brand products. With the brand, sometimes you are paying an inflated price for a famous name while getting the same quality as the cheaper product.

Conclusion

People have asked: $18 an hour is how much a year? I have calculated it to be $37,440 for a full-time job working 40 hours a week, which is above minimum wage and enough to live on, if you are frugal. It’s more difficult for part-timers, in which case you should look for additional sources of income.

About Author

Priscilla Dreher

Known for her travel blogs, Priscilla Dreher started out as sociologist in her career only to combine her love for writing with her penchant for philanthropy in the later years. A widely traveled author, Dreher has championed many human rights causes and continues to advocate for socio-political inclusivity in all her writing.