Last updated Mar. 31, 2024 by Jessica Green
If you’re being paid $18 an hour in wage, you may wonder how much it equals when converted to a yearly salary. And with the increasing cost of living, is it possible to live off this income?
In this article, we will cover how to convert hourly wage rate (i.e. $18 an hour) to weekly, bi-weekly, monthly, and annual salary. We’ll also consider how possible it is to live off $18 an hour, and jobs that pay $18 an hour in the United States.
How Much Does $18 an Hour Equal Per Year?
$18 an hour equals $37,440 per year if you work an average of 40 hours each week.
The standard number of working hours in a week is 40 hours. So if you stick to 40 hours a week without overtime, your annual income will be $37,440.
In a year, there are 52 weeks. If you work 40 hours per week for 52 weeks, then the total number of hours worked in a year becomes 2080 hours.
Number of hours in a week × Number of weeks in a year
= 40 hours × 52 weeks = 2080 hours.
To convert your hourly wage rate to an annual salary, multiply the total number of hours you work in a year by your hourly wage.
Total number of working hours in a year × hourly wage
= 2080 hours × $18 = $37,440
Thus, if you receive $18 an hour, your annual salary will be $37,440
Another Interesting Article: $17 an Hour is How Much per Year?
$18 An Hour With Overtime Is How Much A Year
Overtime allows you to make 1.5 times higher than your hourly wage. It is compensation for working longer than eight hours per day.
If your hourly wage is $18, overtime payment will be $27 per hour.
$18 × 1.5 = $27.
Here’s how to calculate how much you make in a year if you work overtime.
If you worked 50 hours a week instead of the normal 40 hours, you’ll receive overtime payment for the extra 10 hours worked.
Regular hours worked = $18 an hour x 40 hours = $720
10 overtime hours = $27 x 10 = $270
$720 + $270 = $990 per week.
If you continue working 50 hours per week (40 normal working hours plus 10 hours overtime), here’s how much you would make in a year.
$990 in a week x 52 weeks in a year = $51,480.
Without overtime, $18 an hour is $37,440 per year, but with 10 hours of overtime pay, $18 an hour will result in $51,480 a year.
The below table considers different overtime hours and how much you will earn in a year with a $18 hourly rate.
Overtime Hours | Hours Per Week | Weekly Earnings | Annual Earnings |
|---|---|---|---|
0 | 40 | $720 | $37,440 |
1 | 45 | $855 | $44,460 |
2 | 50 | $990 | $51,480 |
3 | 55 | $1,125 | $58,500 |
4 | 60 | $1,260 | $65,520 |
5 | 65 | $1,395 | $72,540 |
6 | 70 | $1,530 | $79,560 |
Use this overtime calculator to make calculations.
Part-time $18 An Hour Is How Much A Year
Part-time means less number of working hours (less than eight hours a day and less than 40 hours per week).
Here’s how to calculate how much you earn part-time in a week and a year.
Weekly Earning: Hourly Wage Rate × Number of Part-time Hours Worked In A Week
For example, if you work 25 hours per week at a job that pays $18 an hour, you’ll make $450 per week.
$18 an hour × 25 hours part-time = $450
Annual Salary: Weekly Pay × Number of Weeks In A Year
= $450 × 52 Weeks = $23,400
Therefore, if your hourly wage rate is $18 an hour, and you work part-time for 25 hours per week, you will make $450 in a week and $23,400 in a year.
Another Interesting Article: How Many Hours is a Part-Time Job?
The below table considers different part-time hours and how much you will earn in a year with an $18 hourly rate.
Part-time Hours Per Week | Weekly Earnings | Annual Earnings |
|---|---|---|
20 | $360 | $18,720 |
21 | $378 | $19,656 |
22 | $396 | $20,592 |
23 | $414 | $21,528 |
24 | $432 | $22,464 |
25 | $450 | $23,400 |
26 | $468 | $24,336 |
27 | $486 | $25,272 |
28 | $504 | $26,208 |
29 | $522 | $27,144 |
30 | $540 | $28,080 |
31 | $558 | $29,016 |
32 | $576 | $29,952 |
33 | $594 | $30,888 |
34 | $612 | $31,824 |
35 | $630 | $32,760 |
$18 An Hour Is How Much A Month
To calculate how much you make in a month, divide your annual income by the number of months in a year.
Since $18 an hour is $37,440 per year, then your monthly salary will be $3,120.
$37,440 ÷ 12 months = $3,120
The above method is the most accurate way to convert hourly wage to monthly salary.
Oftentimes, people use the below method to calculate their monthly salary.
Hourly Wage × Number of Hours Worked In A Week × 4 Weeks In A Month
$18 × 40 Hours × 4 weeks in a month = $2,880.
While the above method is not entirely wrong, it does not consider the extra days that come with 4 weeks in a month.
Another Interesting Article:
How Much Is $18 An Hour For A Week
If you work 40 hours per week for a job that pays you $18 an hour, you will make $720 every week – forty hours is the standard number of working hours in a week.
Here’s how to calculate it:
Hourly Wage Rate × Total Number of Hours Worked In A Week
= $18 × 40 Hours
= $720 per week.
$18 An Hour Is How Much Bi-weekly
Bi-weekly means two weeks. So if you work for two weeks, you’ll receive a bi-weekly payment.
If the standard number of working hours in a week is 40, then in two weeks, you’ll work 80 hours.
To calculate how much you make in two weeks, multiply your hourly wage by the total number of hours you work in two weeks.
$18 an hour × 80 hours in two weeks = $1,440
Thus, $18 an hour is $1,440 bi-weekly before taxes.
Can You Live Off $18 An Hour
Whether you can live off $18 an hour depends on certain factors which includes
- Cost of living in your city/state
- Number of dependents in your family
- Income Tax Rate in your city/state
- Your living lifestyle and priorities
- Loan Repayment
- Transportation Costs
Thus, most people can consider $18 an hour a livable wage while others may see it as not enough to sustain them.
Student loans, mortgage payments, auto loans, or personal loans can take a good chunk of your monthly salary. If you’re stuck with any of these loans, it may be difficult to live off $18 an hour.
Similarly, if your family members depend on your income and if you’re responsible for their medical bills, groceries, school supplies, and other bills, you may need to find a side hustle to support your wage of $18 an hour.
In addition, if you live an expensive lifestyle that requires branded items and fashionable goods, $18 an hour will not be enough for you to live on.
However, if you’re single with no responsibility and live a modest lifestyle, $18 an hour will sustain you.
How To Budget An Income Of $18 An Hour
If you are paid $18 an hour, you can make a budget by using the 50-30-20 budgeting rule.
The 50-30-20 budgeting rule suggests that you allocate 50% of your monthly income to needs, 30% to wants, and 20% to savings or debt payments. In other words, fifty percent of your income should go to basic expenses, thirty percent to fun, entertainment, and miscellaneous expenses, while the remaining twenty percent should be put towards savings.
Since $18 an hour equals $3,120 per month, here’s what your budget should look like:
- Needs (bills, food, groceries, insurance, transportation): $1,560
- Wants (travel &recreation): $936
- Savings & Debt Payment: $624
Conclusion
When converted to an annual salary, $18 an hour is $37,440 per year. This amount can sustain you if you live a modest lifestyle and have no dependents. But if you desire to live a high-maintenance lifestyle, get a side hustle to avoid running into debt.
Frequently Asked Questions On $18 An Hour
Is $18 An Hour Enough To Buy A House?
$18 an hour income is enough to buy a house if you have savings, no dependents, and no debts. It’ll also help if the cost of housing and real estate in your city/state is cheap.
Is $18 An Hour A Good Wage
The real median household income in the U.S. in 2022 was $74,580. If you earn $18 an hour, you’ll make $37,440. When this is combined with your partner’s income, it’ll be greater than $74,580. Thus, $18 an hour is a good wage if you’re single and if you have a partner who earns a similar amount.
$18 An Hour Is How Much A Day
$18 an hour per day is $144. To get how much you make in a day, multiply your hourly wage by the number of hours you work in a day.
