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Table of Contents
How Much Is 20 Dollars An Hour Per Year?
$20 per hour is $41,600 per year.
To calculate how much you will get paid per year, let’s assume you work 52 weeks of the year (with 2 weeks paid time off). If you are working a full-time job, you will be working 40 hours per week on average.
40 hours multiplied by 52 weeks is 2,080 working hours in a year.
Multiply the total hours worked in a year (2,080) by the hourly wage of $20 to get $41,600. This is how much you’ll make before taxes.
$20 An Hour Working Full Time
$20 an hour working full time is $36,400 per year (minimum).
Full time work is typically at least 35 hours per week. This qualifies most workers for benefits and full time pay.
35 hours per week multiplied by 52 weeks is 1,820 hours per year working full time.
Multiply the total hours worked in a year (1,820) by the hourly wage of $20 to get $36,400 (minimum). This is how much you’ll make before taxes working full time.
$20 An Hour Working Part Time
$20 an hour working part time is $20,800 per year (minimum).
Part time work is typically at least 20 hours per week.
20 hours per week multiplied by 52 weeks is 1,040 hours per year working part time.
Multiply the total hours worked in a year (1,040) by the hourly wage of $20 to get $20,800. This is how much you’ll make before taxes working part time.
How Much Is $20 An Hour After Taxes?
$20 an hour is $35,360 a year after taxes.
$20 an hour is $17,680 after taxes working part time.
When making $20 an hour, you’ll pay about 15% of your paycheck to Federal, Social Security, and Medicare taxes.
At $41,600 in annual pay, minus 15% in taxes, $20 an hour pays about $35,360 a year after taxes.
At $3,460 in monthly pay, minus 15% in taxes, $20 an hour pays about $2,941 per month after taxes.
$20 an Hour to Salary Calculator
Is $20 an Hour a Good Salary?
It’s not that great. $20 an hour is below the median salary in the United States of $32 an hour, according to the Bureau of Labor Statistics.
And working a full 40 hours puts you at $41,600 per year, which is below the national median income of $54,000 per year.
Can You Live on $20 An Hour?
Yes, you can live on $20 an hour, and depending on where you live and what your needs are. There are several factors to take into account when planning on living on $20 an hour, but the three most important are:
Housing. If you live in a low cost of living area, and can keep your housing costs low, $20 an might work.
Transportation. You can’t afford multiple car payments and a long commute on $20 an hour. Avoiding car payments and keeping transportation costs low can help you live on $20 an hour.
Food. Meal planning and managing your food budget can help you save more money, and stretch every dollar from your $20 an hour job.
Can You Buy a House on $20 An Hour?
You most likely cannot buy a house if you are working full time at $20 an hour.
To qualify for a mortgage you need a good credit score, income, and a sizable down payment. Unless you live in a very low cost of living area with houses under $100,000 or so, you probably won’t qualify for a mortgage.
But as with all loans, it all depends on your budget, your savings, your debt-to-income ratio (DTI), and other factors.
Example Budget For $20 Per Hour
Now that you know how much you can make on $20 an hour, let’s see how a typical budget can look with that income.
Remember, for your budget, you need to calculate the estimated take-home pay.
Taking the $20 an hour monthly income of $3,460, minus taxes, the estimated take home pay is $2,941 (varies by state and paycheck deductions)
Sample Monthly Budget For $20 An Hour:
As you can see, this budget is fairly small, and would be great for a single person, possibly renting an apartment with roommates.
I would not suggest buying a house on $20 an hour, but you can still save a few hundred per month. I recommend that money go to your 401k, investing toward retirement with your company match. Or a Roth IRA if you don’t have access to a 401k.
If you are making $20 an hour, grab your own budget template below and plug in your numbers for your $20 an hour budget.
$20 an Hour FAQ
How Much Is $20 An Hour Per Month?
$20 an hour is $3,460 per month.
This depends on the average number of hours worked per month over a one-year period.
2,080 working hours per year divided by 12 is about 173 working hours per month on average.
So to calculate your monthly income, see below:
$20 an hour multiplied by 173 hours per month is $3,460 per month income on average.
$20 an hour is about $1,740 per month working part time (about 87 hours per month).
How Much Is $20 An Hour Bi-Weekly?
$20 an hour is $1,600 bi-weekly (every two weeks).
If you get paid every two weeks (bi-weekly) working full time, you will work 80 hours per week.
So to calculate your bi-weekly income, see below:
$20 an hour multiplied by 80 hours per week is $1,600 bi-weekly income working full time.
$20 an hour is about $800 bi-weekly working part time (about 20 hours per week).
How Much Is $20 An Hour Per Week?
$20 an hour is $800 per week.
If you want to break it out by week, let’s assume you’re working a normal 40-hour week.
So to calculate your weekly income, see below:
$20 an hour multiplied by 40 hours per week is $800 per week income.
$20 an hour is about $400 per week working part time (about 20 hours per week).
How Much Is $20 An Hour Per Day?
$20 an hour is $160 per day.
If you are working full-time, you typically work an 8-hour workday. Based on that, here’s the calculation:
$20 an hour multiplied by 8 hours per day is $160 per day income.