Looking at a job that pays $15 an hour and wondering how much that works out a year?
Then this is the post for you.
Maybe you have an offline job or one of those legit work at home jobs that pays $15 an hour. Maybe you are just considering your options to see if a $15 per hour is actually enough for you to live off of.
Whatever the reason is, below, I’ll cover exactly how much $15 an hour works out to per year, and whether or not this is a livable wage.
What will I learn?
What’s Your Yearly Salary with a $15 an Hour Job?
Whether you have a traditionally 9 to 5 job or one of those where you feel like you make money without a job, how many hours you work will determine how much you’ll earn a year. Let’s base our example on the typical 40 hour workweek.
Multiply 40 hours by the 52 weeks that are in a year, and that is 2080 working hours.
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This means that $15 an hour multiplied by 2080 is $31,200.
If you earn $15 an hour and work 40 hours a week, you would earn $31,200 a year.
$15 an hour is how much a month?
Divide your annual income of $31,200 an hour by 12, and $15 an hour works out at $2,600 a month.
$15 an hour is how much a week?
If you work 40 hours a week and make $15 an hour, you would earn $600 a week.
$15 an hour is how much a day?
If you earn $15 an hour and work an 8-hour day, you would earn $120 a day.
$15 an hour is how much a year part-time?
Okay, so, what about if you work part-time? How much does $15 an hour work out per year when you work part-time?
According to the Bureau of Labor Statistics, part-time workers are people who usually work fewer than 35 hours per week.
Here’s what $15 an hour is per year for part-time workers:
- Working 20 hours a week: $15 an hour is $15,600 a year.
- Working 30 hours a week: $15 an hour is $23,400 a year.
- Working 35 hours a week: $15 an hour is $27,300 a year.
How much is $15 an hour after taxes?
Okay, so what about after taxes? What does $15 an hour work out to yearly once you account for those? Well, it really depends on where you live. Some states have no income taxes and others charge pretty high rates.
In this post, I’m going to use the average tax percentage just for example purposes. To find out exactly how much will be taken from your paycheck in taxes, you will need to check the rates where you live.
According to TaxFoundation.org, the average single American contributes 29.8% of their earnings to three taxes, which are income taxes, Medicare, and Social Security.
So, if we take that $31,200 a year and minus 29.8% for taxes, we’re left with about $21,902.40.
Of course, how much you pay in taxes will, like I said earlier, depend on the state where you live. You could pay more tax than that or less.
The average American though can expect to make $21,902 a year after taxes from their $31,200 salary.
When you take 29.8% off your hourly wage, your $15 an hour becomes about $10.53 an hour.
What About Similar Wages?
Okay, so in this section, I just wanted to cover some similar income amounts so that you can get a better idea of how much different hourly rates can work out per year. For example, how much is 6 figures in hourly pay.
All of the figures below are the hourly rate multiplied by 2080 hours (40 hours per week x 52 weeks a year)
$14 an hour is how much a year?
$14 an hour is $29,120 a year.
$16 an hour is how much a year?
$16 an hour is $33,280 a year
$17 an hour is how much a year?
$17 an hour is $35,360 a year.
$20 an hour is how much a year?
$20 an hour is $41,600 a year.
Can You Live off $15 an Hour?
You can live on $15 an hour, but how far your money will go depends on where you live and how you budget. If you go out to eat a lot and live in an expensive place like NYC, then your $31,200 salary won’t go particularly far. However, if you live in a place that’s not too expensive, and you budget well, then you can totally make $15 an hour work as an income.
There are so many accounts out there of people living on $15 an hour. Sure, their budget is tight, but they are still able to rent a place and even save money.
Here’s what people have to say about making around $15 an hour:
- One Redditor says: “Extremely doable but it is a very tight budget. Make sure you get your debt paid off ASAP and then keep saving that $300 a month until you get up to $5k in an emergency fund.”
- Another Redditor says: “As far as expenses and fun money go I live off close to $15 an hour would actually have to sit down and figure it out but I started welding straight out of high school at $14 an hour making $22.50 now. I contribute 25% to my 401k and max my Roth. Wouldn’t say I live an extravagant life style by any means but l have money left over every month that just builds up in my checking account for larger purchases.”
- One Redditor says: “Of course you can. There are tens of millions of Americans who live on less than that. But, how easy it will be and what kind of lifestyle that will require depends heavily on where and how you live, who you’re taking care of, if you have debt, etc.”
Whether or not this is a good wage though depends on who you ask. Some people think that it’s barely survivable and others think that it’s totally doable. There are people making that salary work for them, as you can see from the examples above. I would say that if you are earning $15 an hour, it’s important to budget well.
I actually have some tips for living well on $15 an hour…
How to Live Comfortably on $15 an Hour
Here are a few things you should do if you make $15 an hour:
- The first step is ensuring that you can afford your rent or mortgage on that income. Otherwise, it won’t work for you. If housing where you live is too expensive, consider moving to a more affordable town or state.
- Also, consider switching out services, cut the cord and go for for more affordable ones, like Netflix. Phone contracts, internet bills, etc., are all expensive and can drain your money fast. Instead, seek out cheaper alternatives.
- Avoid eating out often. A meal at a restaurant can set you back a lot. Cooking at home can save a whole lot.
- Do everything you can to save money: Coupons, rebate apps, there are so many tools out there that can save you cash, and you should be using them. Don’t forget to check out our many posts on saving money to get tons of practical tips and tricks.
- Pay your debts. Debts are one of those things that most people have and they will drain your bank balance if you don’t pay them off. Check out my post on how to pay off debts (even if you have no money) to learn more.
- Get a side hustle. If you really want to be more comfortable and not have to budget quite so much, then try getting a side hustle. There are so many gig jobs and ways to make money from home.
Making $15 an hour isn’t a huge income, but you can live on that. $15 an hour is more manageable if you live somewhere that’s not too expensive, and if you are willing to follow a budget.
Now that you know exactly $15 an hour is how much a year, you can make better decisions about things that impact your financial life. If you get a job offer that pays $15 per hour, you can do the math and figure out if whether or not it’s enough for you to pay your bills and live comfortably.