$15 an hour is how much a year? Learn exactly how much you'll make and how to live off $15 an hour while budgeting effectively.
In recent months, there have been talks about raising the minimum wage to $15 an hour.
As you can imagine, this has drawn up many questions and opinions as to whether or not people can live on $15 an hour and what $15 an hour looks like in a full year.
In this post, we'll break down how much $15 an hour gives you in a year, how much $15 an hour is per month, and if you can live off $15 an hour. By the end, you'll not only gain the knowledge about what $15 an hour means for you, but I've listed some great jobs for $15 an hour that you'll love!
$15 an Hour is How Much a Year?
A full-time job making $15 an hour is $31,200 a year.
Let's do the math together.
A standard full-time job typically requires you to work 40 hours a week.
Therefore, if we take 40 hours per week and multiply it by 52 weeks a year, we will get 2,080 hours of work in a year.
We then multiply 2,080 hours of work in a year by $15 an hour to get our annual salary.
40 Hours Per Week X 52 weeks a Year = 2,080 Hours of Work in a Year
2080 Hours of Work in a Year X $15 an Hour = $31,200
This means that if you work 40 hours a week at a full-time job making $15 an hour, you will make a salary of $31,200 before taxes.
However, I bet you're wondering what your take-home pay would be after taxes.
Let's take a look.
$15 an Hour is How Much after Taxes per Year?
A $31,200 salary should expect to pay around 16%-19% in taxes, on average.
Therefore, your take-home pay would be somewhere between $25,000 and $28,000.
Determining the amount of taxes to expect from a $15 an hour job per year is not as simple as it sounds.
There are many factors that determine the amount of taxes you will owe, including withholdings, dependents, state and county taxes, etc.
Therefore, the average of 16-19% is what you should expect and plan for.
Always talk to a tax professional to find your exact tax rate as this is just education, not tax advice.
15 Dollars an Hour is How Much a Month?
$15 an hour working 40 hours per week is $2,600 a month.
How did I arrive at that number?
Take the salary of $31,200 that we calculated above and divide it by 12. This gives you $2,600 a month before taxes.
$31,200 / 12 Months = $2,600
Keep in mind, you will still need to pay taxes on this amount.
You can also cross-reference this math by calculating exactly how many days you work per month.
How to Calculate $15 an Hour for a Particular Month:
First, calculate the hours you work per day.
Next, multiply the hours you work per day by the amount of days you work within that month.
Finally, multiply that figure by $15 an hour.
For example, if there are 30 days in the month, you take 8 hours per day and multiply it by the number of days you work in that month. Let's say you plan to work 22 days. That would give you 176 hours.
Next, you multiple 176 hours by $15 an hour. That would give you $2,640 before taxes.
(In doing your own calculation, just don't forget that you probably have some days off, so make sure to remove them from your calculation.)
How Much is $15 an Hour Biweekly?
$15 an hour at a full-time job is $1,200 biweekly.
Let's review the math.
A full-time job typically entails a 40-hour workweek.
Therefore, you take 40 hours and multiply it by $15 an hour. That gives you $600 a week.
Next, you take $600 a week and multiply it by 2 to get your biweekly pay. That gives you $1,200 biweekly before taxes.
40 Hours a Week X $15 an Hour = $600 a Week
$600 a Week x 2= $1,200 Biweekly
Keep in mind, you will still need to pay taxes on these earnings so $1,200 will not be your take-home pay.
$15 an Hour is How Much a Week?
At a full-time job of 40 hours a week, $15 dollars an hour is $600 per week.
Let's double-check the math.
A full-time job requires working 40 hours a week. Multiply 40 hours by $15 an hour to get your total pay before taxes.
40 Hours a Week X $15 an Hour = $600 a Week
How Much is $15 an Hour 36 Hours a Week?
Working 36 hours a week earning $15 an hour will give you $540 before taxes.
Let's review how to do the math.
Multiply 36 hours by $15 an hour to get $540.
36 Hours X $15 an Hour = $540
How Much is $15 an Hour 16 Hours a Week?
Working 16 hours earning $15 an hour will give you $240 before taxes.
Let's discuss how I arrived at that number.
Multiply 16 hours by $15 an hour to get $240.
16 Hours X $15 an Hour = $240
$15 an Hour is How Much per Day?
Working a standard 8 hours a day at $15 an hour will earn you $120 a day before taxes.
How did I do the math?
Multiply 8 hours by $15 an hour and you will get $120 a day before taxes.
8 Hours X $15 an Hour = $120
Is $15 an Hour a Good Wage?
This is subjective.
$15 an hour can be a great wage for those living where there's a low cost of living and for someone who's great at budgeting effectively.
Whether or not $15 an hour is good for you will depend on your financial situation and the following factors:
- How much debt you have
- How many dependents you have
- Where you live
- What your bills look like
- How much you spend on entertainment and extras
- Medical responsibilities
- Transportation costs
Can you Live Off $15 an Hour?
Now that you know how much $15 an hour will earn you per year, I bet you're wondering if this is a salary you can live off of.
Yes, you can live on $15 an hour if you live in a city where the cost of living is lower.
You'll also need to be very mindful of your budgeting and spending habits.
My free budget binder can help you put together a budget and stick to it with my proven strategy that works.
Related: FREE Printable Expense Tracker: The Downloadable Budget Binder You Need
According to Indeed, the average annual salary in the United State is $51,168. Therefore, being very mindful of spending habits and looking for ways to save money will help you stretch your $31,200 a year salary.
Related:
- 9 Money Saving Tips to Increase Your Savings Immediately
- Food on a Budget: 24 Ways to Save Money on Groceries
- How to Save Money Around the House: 15 Things to Try Today
In fact, living on $15 an hour is very doable, especially if you live in a state that doesn't have an income tax.
As of 2022, states that don't have income tax include:
- Alaska
- Florida
- New Hampshire
- Nevada
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
Not having state income tax will stretch your dollar so much further.
Tips to Live on $15 an Hour
Here are some tips to live on $15 an hour.
- Pay off debt. Use my debt payoff printables and debt payoff strategy to get your moving toward your goals.
- Start budgeting. Create your own personal finance binder and learn to budget effectively.
- Never spend more than you make.
- Create money envelopes to plan for your bills ahead of time and to ensure you don't go over.
- Save leftover money in an emergency fund that sites in a high yield savings account.
Can You Buy a House Making $15 an Hour?
Most likely, no.
The truth is that buying a house is extremely expensive and at $15 an hour, most likely there won't be a lot left over for savings.
Related: What is a High Yield Savings Account (HYSA)?: Ultimate Guide
Most people just think about the cost of a mortgage, but neglect that there so many other costs of homeownership that need to be considered and accounted for.
Related: Buying Your First Home? Costs You Need to Know Before Writing An Offer
However, if you are able to find a great deal and have some money saved up, you can definitely live the American dream.
If you do have buying a home on your list of goals, these posts will help prepare you for your first home:
- Buying Your First Home? Costs You Need to Know Before Writing An Offer
- First Home Mortgage? 3 Things You Need to Look for to Score the Best Deal
In addition, perhaps there are some side hustles you can take on to help you make more money to save!
Ways to Save Money While Making $15 an Hour
There are SO many ways to save money when you're on an extreme budget. In fact, saving money is one of my favorite things!
My favorite ways to save money while on an extreme budget:
- Stay organized with your own personal finance binder
- Keep your emergency fund in a high-yield savings account.
- Buy your items at Dollar Tree
- Walk the perimeter of the grocery store to avoid splurging on items you don't need. More grocery money-saving tips.
- Skip getting your nails done and do your nails at home instead
- Use money-saving apps when shopping to get money back
- Get a roommate
Other articles on saving money:
- How to Do Professional Looking Gel Nails at Home to Save $1,000 a Year
- 7 Cheap Things to Buy on eBay that Will Save You TONS of Money
- How to Save Money on Amazon: 15 Ways You Didn’t Know About
- 10 Genius Ways to Save Money Shopping
How to Budget on $15 an Hour
Jean Chatzy, a finance expert, recommends budgeting $15 an hour in the following way.
She says to allocate your take home earnings (after tax) in the following way:
- Housing: 35%
- Savings: 10%
- Car: 15%
- Debt: 15%
- Living: 25%
If you don't have debt, first off, congratulations! Second off, take that 15% and split it amongst the other categories as you please. I'd recommend putting that 15% into savings, if you can!
How to Make More Money, if $15 an Hour is Not Enough
If $15 an hour is not enough to pay the bills or doesn't allow for “extras”, here are some great ideas to make extra cash on the side!
Side Hustle Ideas:
- Start a Blog– I make $7,000 a month from my blog as a side hustle (in less than a year!)
- Sell your items on eBay- What to Sell on eBay: Make an Easy $500 a Month
- Sell Free Items from Craigslist- Find free items on Craigslist or Facebook Marketplace and then sell them for a profit on eBay
- Do yard work for neighbors- Go door to door with a flyer about yourself and offer to do yardwork
- Babysit for a friend or neighbor
- Start a social media account and get brands to advertise with you
- Rent out your car, storage space in your home, or other assets.
- Ask for a raise
For more money-making ideas, visit Ultimate List of 45 Insanely Easy Ways to Make Money (that are actually good).
Jobs that Earn $15 Dollars an Hour
According to Indeed, here is a list of jobs that usually make at least $15 an hour.
- Mail Handler
- Customer Service Clerk
- Hostess/Server
- Bartender
- Receptionist
- Medical Assistant
- Veterinary Technician
- Construction Worker
- Delivery Driver
- Painter
- Babysitter
- Dental Assistant
The list goes on and on. There are so many jobs that pay $15 an hour or more.
Most will require a high school degree, but a college degree is typically not required.
$15 Dollars an Hour is How Much a Year Conclusion
While $15 an hour can be a living that some people can live off of, most people most likely won't be able to save for things like vacation and retirement.
If $15 an hour is not enough for you, I'd highly recommend picking up a side hustle to make extra money per month!
In addition, you'll likely enjoy this list of 22 steps to take for financial freedom to help you come up with a financial plan and strategy, based on your goals.
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- How to Find the Perfect Job (or so we think): 3 Criteria to Look For
- Ultimate List of 45 Insanely Easy Ways to Make Money (that are actually good)
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