Maybe you just went through a job listing or got offered a job at $27 an hour, and it’s time to hit the numbers. How much is 27 dollars an hour a year?
What about every month, week and day? How much can you have left after taxes? Is $27 an hour different if you’re a freelancer versus a W-2 for a company?
Dive into these questions and learn more about how productive you are with a $27/hour job.
Let’s say you’re working full time, that is, 8 hours a day, 5 days a week, 52 weeks a year (including paid time off). We can use some simple multiplication to calculate how $27/hour adds up for each time period:
- Daily: $27 x 8 hours = $216 a day
- Weekly: $216 a day x 5 days = $1080 a week
- Monthly: $1080 a week x 4.33 (average number of weeks per month) = $4676 a month
- Annual: $1080 a week x 52 weeks = $56160 a year
These are all gross figures, which means they are what you earn before taxes. Your specific tax rate will vary depending on where you live, whether you file jointly or as a single, what deductions you qualify for, etc. 25% is generally a good number to estimate for related taxes. states and states.
Using that 25% figure, we can multiply our previous figures by the remaining 75% to figure out how much you can get after taxes on your $27 an hour:
- Daily: $216 x 75% = $162 take home
- Weekly: $1080 x 75% = $810 take home
- Monthly: $4676 x 75% = $3507
- Annual: $56160 x 75% = $42120
You can use a US Tax Calculator for a more specific estimate of the expected tax rate. Note that if you are making $27/hour as a freelancer, you will be paying more, as you are responsible for all your FICA taxes rather than letting your employer payment action. Personally, I usually spend more than 1/3 of my income on this. (Learn more about self-employment taxes from the IRS here.)
In the 2020s, is $27 an hour a decent, livable salary? The answer here is both simple and complex: it depends.
The biggest factor is simply where you live. If you are a digital nomad living in Thailand and earning US$27, you can live in luxury in a penthouse. If you live in the US Midwest, you can afford a decent home mortgage. But if you’re in a city like New York or San Francisco, $27 an hour will probably get you a closet with six roommates.
Consider an example monthly budget for someone who makes $27 an hour. Since housing is one of the biggest expenses, we’ll start there, using the general rule that you shouldn’t spend more than 30% of your gross monthly income on housing.
We’ll also budget for a 15% savings — you can always save more than this if you can, but think of saving and investing as a priority, not just “whatever I want.” remaining after spending”. It’s the money you are paying for your future to make your life better!
Net Monthly Income: $3507
Depending on where you live, this type of budget may seem extremely doable or it can feel like there isn’t much room. Recording everything and managing to save is a lot easier if you have a dual income household. Two people each working full time and making $27 an hour have a net income of $7014, which is a pretty solid amount to live well in most places!
Looking for a way to stretch your $27 an hour wage as much as you can so you can live well and increase your savings rate? Absolutely possible if you are determined enough! Check out these 72 tips to save money.
If you can only cut your budget so far and you can’t find a job that pays more than $27 an hour, consider supplementing your work with side gigs at night. or weekend. This can be as simple as taking surveys on Swagbucks while you watch TV, or Walk the dog through Rover on a Saturday morning, or even start your own business. Check out 114 party hustle ideas here!
TL; DR: If you come only with the short answer to How much is 27 dollars an hour a year? Answer: $56160 before tax.