18 Dollars an Hour Is How Much a Year?
Last Updated: April 24, 2022
The $10–$20 hourly wage bracket is the most common in the US, with some 63 million jobs paying in this range. Retail, hospitality, and contract-based work dominate the landscape, but there is also an increasing number of remote freelance opportunities.
No matter the occupation, there are plenty of reasons why you may want to convert your per hour rate to a yearly salary. You may be negotiating your compensation, requesting a pay raise, looking for a new job, claiming employment benefits, or figuring out how much you can afford to add to your savings.
You can use a simple baseline calculation or one of the handy online convertors to estimate your annual income from your hourly wage. Yet, we’ll do the hard work for those of you making $18 an hour.
So, 18 dollars an hour is how much a year?
The hour to yearly salary calculation involves the following equation: the number of hours you work per week multiplied by the number of weeks per year.
Suppose you work for $18 an hour, 40 hours a week. Multiplied by the number of weeks per year, this equals a total of 2,080 hours worked through the year. This means that $18 an hour equals $37,440 a year before taxes and deductions.
How Much a Year is 18 Dollars an Hour After Taxes?
According to the 2021 Federal income tax tables, if you make $18 an hour, after taxes, your annual salary would be around $31,788. However, if you do a lot of overtime, you could end up paying more than that in income tax. Also, keep in mind, this doesn’t include state taxes, which vary. To make a precise calculation, you should understand the US tax system and consider the tax rates for the state you currently reside in.
It’s vital to note here that while there are some legal ways to reduce your income tax burden, tax evasion is a federal crime involving hefty penalties.
18 Dollars Per Hour is How Much Per Week?
If you work four full weeks in the month, you’ll be paid $720 per week on $18 per hour. This assumes you are working full time through all four weeks of the month, and it’s the basic amount before any overtime.
And how much is $18 an hour bi-weekly? If you work 40 hours a week, you will take home $1,440 every two weeks.
All the calculations above are based on the assumption you work 40 hours a week. If you work part-time, or 25 hours a week, making $18 an hour, you’ll gross $1,950 a month and take home about $1,708 a month after taxes.
If you’re looking for a pay raise, you should calculate your new total annual income, and working out per hour to annual salary will be simple. Once you know the formula, you can easily calculate any pay raises or extra hours you’ve worked and correlate these with the tax rate and the deductions that you make for your salary.
Final Thoughts: What Can You Do with an $18 per Hour Annual salary?
Typing in “18 dollars an hour is how much a year?” would most likely give you a straight answer. It’s not the same, however, when it comes to whether this is good money and what you can do with your $18/hr annual salary.
For many, $18 per hour is an accomplishment. Whether it is enough, though, depends on a number of factors, including your lifestyle and debt burden. Your family status also matters, especially if there are children in your household, considering the constantly increasing average cost of raising a child in America. Of course, the different tax policies, living costs, and salary averages across the states also count.
Essentially, $18 an hour is a good salary if you know how to save, invest and even earn some extra. According to personal finance statistics, the lack of financial literacy cost Americans $415 billion in 2020. That’s huge, and it comes to show that you can never be too prepared financially. There are plenty of tools out there that can help you optimize your personal cash assets.
If you earn $18 an hour, you will take home a net amount of around $31,788 a year.
Considering you work 40 hours a week, this equals a total of $2,880 a month before taxes. The amount can vary if you do overtime or take any time off during the month.
The $18 per hour wage falls within the second and most common hourly rate range in the US. As it’s far enough from the minimum wage, it can be considered good money. Whether it is enough, however, depends on a number of factors, including your spending habits, debt burden, family status, and home location.
If you earn $40,000 annually working 40 hours a week, you make $19.23 an hour.
Assuming you work 40 hours a week for $25 an hour, your annual salary would be $52,000.