In this post, I’m going to address the question “18 dollars an hour is how much a year?” Keep reading to learn the answer and a lot more about making $18 an hour. Find out how you can support yourself, create a budget, and find jobs that pay this hourly wage. Let’s get started!
18 dollars an hour is how much a year?
$18 an hour comes out to $37,440 a year.
However, this annual total relies on several factors. If this salary is something you want to make, you’ll need to work 40 hours a week, for 52 weeks out of the year:
$18 x 40 hours x 52 weeks = $37,440
Keep in mind that this total is before taxes and assumes paid sick leave and vacation time. I’ll go over what this salary would look like considering taxes a little later.
18 dollars an hour is how much a year if you work full-time?
The IRS identifies a full-time employee as someone who works between 30 and 40 hours a week. So, what if you don’t get a full 40 hours a week?
If you make $18 an hour, you can expect your pre-tax income to be $28,080 working 30 hours every week:
$18 x 30 hours x 52 weeks = $28,080
So, if you maintain your full-time status (working between 30-40 hours every week), you can bring in between $28,080 and $37,440 a year (not including overtime).
Again, these are pre-tax numbers that include paid benefits such as vacation and sick leave. But what if you don’t get those benefits?
Most people take at least a week of vacation time every year, and many will take two and even up to three. If you don’t get paid for this time off, your income will obviously be reduced.
Also, if you get sick and need to take a day or two off, or have to go into the hospital for even longer, you’ll lose out on some income.
Let’s look at both scenarios to see how much your income would be reduced (assuming you work 40 hours a week).
Taking unpaid vacation:
If you take one week off of work without getting paid, you can expect your annual income to be $36,720 per year:
$18 hour x 40 hours x 51 weeks = $36,720
And if you take 2 weeks off of unpaid vacation, your income will be even less at $36,000 a year:
$18 hour x 40 hours x 50 weeks = $36,000
Taking time off from work to spend time with family and get refreshed is important. Just make sure your annual expenses can be covered by any reduction in income.
Taking unpaid sick leave
The majority of the time, you’ll only need to take one or two sick days at a time. So, how much money would you give up if you didn’t get paid? Let’s do the math.
$18 x 8 hours = $144 (pre-tax) per day
Your paycheck would be $144 less (before tax) for every full day you call in sick. If you take a total of 5 sick days over the year, your annual income would be reduced to $36,720. This, of course, is the same amount as taking one week of unpaid vacation.
So far, all calculations for $18 an hour have been before tax is taken out. That’s because taxes can vary widely, depending on your circumstances. Next, let’s look at what your take-home pay would be, based on standard tax rates.
How much is $18 an hour annually after taxes?
Everyone knows that your taxes can take a big bite of your gross salary. Because your tax bill will depend on a variety of factors, it’s impossible to give you an exact income after taxes are taken out.
However, you can get a general idea if we assume two things:
- You are filing as a single person
- You are taking the standard deduction
In 2021, the standard deduction for a single person is $12,550. As a single person, you would stay within the 12% tax bracket. (See 2021 tax table).
Therefore, your taxable income would be $37,440 – $12,550 = $24,890.
According to the 2021 Federal income tax tables, this would mean your federal tax would total $2,788. In addition, Medicare and Social Security would take out another $2,864 (7.65% of your gross salary).
So, once federal taxes, Medicare and Social Security are accounted for, you will be left with $31,788:
$37,440 annual salary – $2,788 federal taxes – $2,864 Medicare & SS = $31,788
*Keep in mind, this does not include state taxes. Look up the tax rates for the state you currently reside in and make the appropriate adjustments.
How much is $18 an hour per month?
It’s a good idea to know your monthly income if you’re making $18 an hour. This can also help you to determine how much of your monthly income will go towards housing, transportation, food, and other expenses.
Working 40 hours a week, you can expect to make $3,120 per month:
$37,440 ÷ 12 months = $3,120 a month (pre-tax)
This is an accurate gross income only if you work every week of the year (52 weeks). If you take any unpaid leave, you’ll need to adjust the total.
Using the same assumptions used above to calculate taxes, you could expect to bring in $2,649 every month after taxes are taken out.
Remember to account for any employee benefit deductions and 401(k) contributions when determining your monthly budget as well.
How much is $18 an hour per week?
If you prefer following a weekly budget, you’ll need to know what $18 will make you every 7 days.
This is simple to calculate. If you work 40 hours a week, your weekly paycheck will be $720 before taxes or any deductions:
$18/hour x 40 hours = $720/a week
After taxes, this would be reduced to $611.
If you only work 30 hours a week, your weekly paycheck would be reduced to $540 every week:
$18/hour x 30 hours = $540/weekly
After taxes, this would be reduced to $467.
How much is $18 an hour bi-weekly? Bi-monthly?
Many people (like my husband) get paid twice a month, usually on the 1st and 15th. Some get their paycheck every other week. These sound like they could be the same situation, but they’re not. Let’s look at the math.
Getting paid twice a month would mean you receive 24 paychecks a year:
2 paychecks a month x 12 months = 24 paychecks a year
However, if you get paid every other week, you would receive 26 paychecks a year:
52 weeks / 2 weeks = 26 paychecks a year
Let’s look at what income you can expect to bring in if your employer uses either of these paycheck schedules.
If you get paid bi-monthly, your paycheck will be approximately $1,560 pre-tax:
$37,440 / 24 weeks = $1,560 paycheck twice a month (gross)
After taxes, you can expect a twice-monthly paycheck of $1,325.
If you get paid bi-weekly, your paycheck will be close to $1,440 pre-tax:
$37,440 / 26 weeks = $1,440 paycheck twice a month (gross)
After taxes, this will be reduced to approximately $1,222.
How much is $18 an hour per day?
Though most people don’t get paid on a daily basis, it can be helpful to know how much you’re pulling in for every full-time shift you work. Full-time is typically considered 8 hours in a day, but you can easily adjust this calculation if you work four 10-hour days.
For one 8-hour day, you will make $144 before taxes are taken out:
8 hours x $18/hour = $144 a day
After taxes, your daily income will be closer to $122.
$18 an hour comparison chart
Is your head swimming with all these numbers? It can be difficult to keep it all straight!
To make things a little more organized, I’ve created a comparison chart of the various circumstances I outlined above when you’re making $18 an hour.
Tips to help you live on $18 an hour
Making $18 an hour may or may not sound like a good wage to you. It depends on the income you’re used to, what you feel your time is worth, and how much you need to cover your living expenses.
The good news is, it’s very possible to live on $18 an hour if you keep your expenses low and minimize or eliminate debt.
Here are a few tips to lower your expenses and live on $18 an hour:
- Keep your housing costs to 25% of your net income
- Try to get rid of any high-interest debt
- Eliminate your car loan by paying it off, or trading in your car for one you can pay cash for
- Transfer all remaining debt to a lower-interest option
- Buy used items (clothing, housewares, electronics, etc) when you can
- Eliminate monthly subscriptions or memberships you don’t really need or use often
- Shop around for lower insurance premiums
- Limit eating out and create monthly meal plans to eat at home more often
- Reduce your cell phone bill with a no-contract carrier that only charges you for what you use
The best way to find expenses that can be eliminated or reduced is to get on a budget. Whether you budget weekly or monthly, tracking your spending with a budget will reveal opportunities where you can maximize your income.
Jobs that earn $18 an hour
According to Indeed.com, you could potentially make $18 an hour with these entry-level positions:
- Warehouse worker
- In-home healthcare
- Customer service representative
- Front desk receptionist
- Delivery driver
- Data entry clerk
- Call center agent
- Appointment scheduler
- Insurance claims specialist
- Waiter / Bartender
- Pet groomer
Sample monthly budget for $18 an hour
Having a budget for any income level is important, but especially for those who are living on very limited funds. An annual salary of $37,440 will not stretch that far (especially after taxes and deductions), but you can make it work if you commit to a spending plan and live within your means.
Following Dave Ramsey’s budget percentage guidelines, I’ve devised a budget that will work if you make $18 an hour. This sample monthly budget is based on an after-tax annual income of $31,788 a year (calculated in the tax section above), which we’ll round up to $2,650 a month.
There are many ways to create a budget, and this is just one example. You could make it as simple as 3 categories with a 50/30/20 percentage split. The important thing is to create one you can stick to and that reflects your financial values.
Is $18 an hour good pay?
To answer this question, it’s a good idea to look at how $18 an hour compares to other incomes in the U.S.
According to data from the U.S. Census Bureau, the median annual wage for an American individual in 2019 was $34,248. This is almost $3,200 less than a year of full-time work at $18/hour. (*Keep in mind that median is very different than average*). Even taking a couple of weeks of unpaid time off would still bring in more income than the median annual wage.
Does this mean that $18 an hour is good pay? It depends.
If you live in a small town in Oklahoma, you might think so. If you live in a coastal city in California, probably not so much. It all depends on the lifestyle you want.
Overall, making $18/hour will limit your options considerably. Although it is a little more than the median national wage, this level of income would make it very difficult for you to save enough for a comfortable retirement or a college education, especially if you have significant debt.
Final thoughts on $18 an hour
In summary, a full-time job making $18 an hour comes out to $37,440 a year before taxes and deductions are taken out. After you account for federal taxes, Medicare and Social Security deductions, you’ll have close to $31,788.
If you are single with no dependents, or you have a two-income household with very little debt, this hourly wage could be sufficient to support your living expenses. However, you may find it difficult to save money, give to charity, buy a house, or travel. Committing to a budget and a frugal lifestyle will help you achieve your financial goals, although you may be slower in achieving them.
The good news is that $18/hour jobs are more plentiful than ever before, and most require no formal training. And, just remember, if you get a job that pays $18/hour, it’s only the beginning. As you take advantage of opportunities to move up, your hourly wage will only increase.
Other posts you may enjoy:
- 50 Steps To Wealth Creation and Retiring A Millionaire
- 23 Smart Strategies To Save For Retirement At 50
- 50 Good Money Habits To Help You Save More
- Pinecone Research: An Easy Way To Make Extra Money
- 15 Scriptures On Debt Freedom: How To Handle Debt God’s Way
- How To Beat Lifestyle Inflation In 8 Steps
- 50+ Easy Ways To Make Extra Money (Offline & Online)
- How To Save $1000 A Month (Without Working More)
- 51 Money-Saving Challenges for 2021
- A 5-Step Plan To Save $5,000 In A Year
- 50 Smart Ways To Save Money On A Tight Budget
Want to save this post for later? Pin it to your favorite Pinterest board!