18 Dollars an Hour is How Much a Year [Can You Live On It in 2022]

A wage of 18 dollars an hour is $37,400 a year before taxes are deducted from the paycheck. You can live on this salary if you have a solid budget in place with a smaller family. Taking on a side gig to increase your income is ideal to give you additional income to save, pay off debt, and still enjoy fun activities.

What You Need to Know

The formula for Calculating Yearly Salary is $18 per hour x 2,080 per year = $37,440 before taxes
You would make:
Daily: $103
Weekly: $720
Biweekly: $1,440
Monthly: $3,120
planner and computer on desk text 18 an hour is how much a year
$18 an Hour is How Much a Year

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Wondering how much money you would make in a year if you earn 18 dollars an hour?

Calculate your income by starting with the yearly, monthly, and weekly salary to make the determination if you can live on earning this amount.

Be sure to figure the tax both before and after it is deducted for accurate numbers.

Does the idea of earning an $18 hourly wage sound like a dream you want to work toward achieving?

Keep reading for our ultimate guide that breaks down the most-asked questions on this topic with step-by-step details on how much you will earn each week, month, and year both before and after taxes are deducted.

We also put together a sample budget to give you a head start with your own budget! 

Take note that when the numbers vary using different calculations, there are several ways to calculate income. You may see this in our figures as well as the calculations you do on your own.

For example, the average month of income will vary depending on if it is figured using 4 weeks in a month or the total number of days and hours worked in a month.

It also depends on how accurate the tax deduction figures are and if social security and medicare deductions are included.

Let’s dive in!

What is your annual salary if you make 18 an hour?

$18 an hour is $37,440 per year.

This is how we arrived at the calculation:

Work week = 40 hours

Weeks in a year = 52

Hours worked per year = 2,080

The total of $37,440 is the yearly amount you will earn before tax is deducted from your paycheck.

NOTE: This is considering you are working a 40-hour week for the entire year (which is a total of 52 weeks) and it does not take into consideration unpaid leave days for vacation, sickness, etc., if applicable. The typical job allows for 2 weeks vacation, leaving 50 weeks of workdays per year

How much is $18 an hour monthly, full-time?

If you live in the United States, full-time employment is considered 30+ hours each week, with the typical work-week being 40 hours for an 8 hour day. Assuming you work the entire year, this would be 52 weeks and 2,080 hours.

The calculations we use are following this common schedule of working 40 hours weekly for the entire year of 52 weeks.

How much is $18 an hour part-time?

In the United States, if you work less than 30 hours a week it is considered part-time employment. The typical part-time job is 20 hours per week.

This cuts the full-time work hours from 2,080 hours to 1,040 hours.

Therefore, if you are making an hourly rate of 18 dollars and assuming you work 20 hours per week, you will earn $18,720 per year.

Download the Hourly Wage Conversion Chart (it’s free!)

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Hourly Wage Conversion Chart

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*Base annual salary before deductions for federal, state, and local tax, Social Security, and Medicare.

Looking for a simple budgeting system to track your finances? Check out our top 10 budget planners, updated for this year!

What is your annual salary if you make 18 an hour after taxes?

The average tax rate is 15% but keep in mind this number is an estimate based on what state you reside in and other deduction factors, etc.

Tax deductions include federal tax, state tax (if applicable), medicare, and social security.

If you work 40 hours per week after taxes are deducted, your total take-home pay is approximately $31,824.

Your total take-home pay if you work part-time at 20 hours each week after tax is deducted is approximately $15,912 per year.

Is $18.50 a good hourly salary?

The minimum average tax rate is approximately 15% but keep in mind it is an estimate based on what state you reside in and other deduction factors, etc.

This depends on a number of factors, such as where you reside, the type of work you are doing, etc.

Also, there are specific tax brackets that place you in a category, and the more you earn, the higher your tax bracket (so you pay more tax.)

It is an average salary, with an estimate that each person earning an hourly wage of $18.50 earns more than 48% of workers in the United States.

Is 18 dollars an hour good money?

If you really want to break down your budget and prepare accordingly to pay all your expenses on $18 per hour pay, the following scenarios will help you.

Keep in mind that these numbers are before pretax since they will vary from person to person and state to state.

If you want to make the conversion to how much your take-home pay would be after tax is deducted, simply multiply the number with your tax bracket.

Our approximate guess is 15% of your paycheck will be deducted to cover income tax, but this will vary from person to person and state to state.

To get your actual tax bracket, go to the Federal Government tax website.

A sample is included in the first scenario below.

You might also like: What is a Walmart Rollback? (Hint: It isn’t a sale!)

18 dollars an hour is how much a month?

If you are working a full schedule of 40 hours a week, your earnings are $2,880 per month (before tax is deducted.)

If you are working part-time at 20 hours each week, you are making $1,440 per month (before tax is deducted.)

EXAMPLE: Calculate your annual wage after the tax is deducted

Total monthly salary = $2880

Tax deductions = 15% (.15)

2880 x .15 = 432

2880 – 432 = 2448

OR

2880 x .85 = 2448

Your approximate net pay (take-home pay) is $2,448.

Do you love to save money?

The following posts can save you thousands of dollars a year!

  1. 57 Smart Ways to Spend Less on Food
    • Jump to #24 if you want to cut your grocery bill immediately!
  2. Cheapest Groceries List: 70 Best Foods to Buy on a Tight Budget
    • Hint: Stock up on #62 for the best but cheapest meals!
  3. 160 Best Frugal Living Tips to Save Money Today
    • Hop to #21 for massive savings at the grocery store!

18 dollars an hour is how much biweekly?

Bi-weekly means you get paid twice per month, or every 2 weeks.

If you are working full-time at 40 hours each week, your income is $1,440 every 2 weeks (before taxes are deducted.)

Assuming you are working part-time at 20 hours a week, you’re making $720 (before taxes are deducted.)

18 dollars an hour is how much a week?

If you are working a full schedule of 40 hours a week, your earnings are $720 per week (before taxes are deducted.)

Assuming you are working part-time at 20 hours a week, $360 is how much you will earn (before taxes are deducted.)

Wondering how to convert your yearly salary into how much you make per hour? Get the details using our free Yearly to Hourly Wage Calculator!

18 dollars an hour is how much a day?

If you are working 40 hours a week, your daily salary equals $144 (before taxes are deducted.)

If you are working part-time at 20 hours a week,  you will get paid $72 per day (before taxes are deducted.)

Can you live on $18 an hour?

In 2019 the median annual income was just under $36,000 according to the US Census Bureau.

median household income us census bureau for 40000 a year is how much an hour
U.S. Census Bureau Median Household Income 2015-2019

This means if you are making at least $37,440 per year then you are making more than the average U.S. citizen in comparison to others’ annual incomes.

A big determining factor in whether or not you can survive on any specified amount no matter how high or low it seems to be, is where you live and your personal expenses.

Think about what your living costs might be. Make a list of them.

Think about where your priorities are. Make a list of the things you are not willing to give up (as long as you can afford it on your annual pay with your hourly wage.)

Will how much you make a year support your necessary costs as well as the lifestyle you want to enjoy?

However, if you refer to Go Banking Rates, it is not possible to fully support yourself on this hourly rate over the course of a year.

They recently completed a survey that concluded with the rising cost of housing and basic living costs you need a minimum of $58,000 a year (with variations depending on where you live) and for some places (like Hawaii) you need to make a yearly salary over $136,000.

Can you buy a house on 18 per hour?

This is a tough question that cannot be answered with a precise ‘yes’ or ‘no’.

It depends on a number of factors, such as where you reside, the type of home you are looking to buy, your credit score, how much savings you have built up for a down payment, and many other things.

With a salary of $18 an hour before taxes, it would be difficult to save enough to purchase a house right away if you are starting from scratch.

However, it may be impossible with proper planning and patience.

It is also likely you will need some other financial backing for sufficient down-payment or rental history showing you can make a payment on time.

If you do want to buy a house making this amount, the following steps could help:

Save Money

If you want to buy a house saving must be a top priority.

Here are some ways to start saving more:

  1. Get a side gig working on weekends or nights.
  2. Cut back on your outgoing costs so you can put the extra salary away for savings and/or investment opportunities.
  3. Invest in basic assets, like stocks and bonds (your brokerage account will help you here.)
  4. Get a second job that allows you to earn tips.
  • The average worker that earns tips makes approximately $300 a week in extra money.

Other things that can help you buy a house with an hourly wage of $18:

  • Grow a savings account as quickly as possible
  • Manage your finances with a strict budget
  • Keep your cost of living low
  • Monitor your debt and keep your debt-to-income ratio less than 45%

If you can do these things, you can buy a home on 18 per hour which is an annual income of $37,400.

On the other hand, if you:

  • Don’t follow a budget and you are not willing to
  • Reside where the cost of living is high
  • Have a debt-to-income ratio higher than 45%
  • Don’t have a stable employment history or only work part-time
  • Have little or no savings

If this is more reflective of your lifestyle, you will not be able to buy a house with this wage.

Related Post: $40,000 a year is how much an hour?

Can you live off $18 per hour?

It’s not easy to live on $18 an hour, but with a solid plan, you can make ends meet if this is how much you are paid.

Tips to reduce housing costs:

  • Move into more affordable living spaces such as a one-bedroom apartment or even go smaller to a studio.
  • If possible, find roommates and split the cost in half or three ways.

Tips to reduce other living costs:

  • Buy food from the grocery store so you are limiting spending on eating out.
  • If you live in a place that offers free grocery pickup, opt for this so you are purchasing exactly what you need and not going inside the store.
  • Reduce entertainment costs (skip going to movies and concerts.)
  • Split cable or TV plans with a friend or family member.

You can live on $18 an hour with proper budgeting and planning.

Ways to make more money if $18 an hour isn’t enough

  • Start a side business online that allows you to earn extra (such as selling things on eBay, Amazon, or Etsy.)
  • Sell your used items using the internet, such as selling an old cellphone on eBay, Craigslist, or Facebook Marketplace.
  • Get a part-time side hustle working at night or on weekends.
  • Find opportunities in your community by volunteering either individually or with groups like churches and schools.
  • Ask your supervisor for a raise
  • Find a side hustle that is flexible so you can do as little or as much as you want such as babysitting, cleaning houses, walking dogs or pet-sitting, become an Uber or food delivery driver, etc.
  • If you work 50 weeks in your regular position with 2-weeks of vacation, you can also pre-plan ways to earn extra income during your time off.

Budget percentage breakdown

To create your own budget, you can use the following template as a guideline to get started.

Budget Category

Percentage

Housing

30%

Transportation

15%

Insurance

15%

Utilities

10%

Food

10%

Personal Items

5%

Entertainment

5%

Savings

10%

Basic Budget Percentage Breakdown

Sample budget on a salary of 18 dollars an hour

The following sample budget shows how a person making 18 an hour/$2,652 per month (take-home pay after taxes in this example) can allocate their wages to live comfortably.

When you plug in your own numbers, take the ways to save money into consideration, such as sharing rent with family or friends, and you can likely spend less on some categories.

This example is following the budgeting guidelines of spending 70% of the income on living expenses, 10% on savings, and 20% on the remaining living costs.

For any categories you can spend less than the guideline percentage, it is recommended to add that money into savings.

When you are making your own list, start with each month and move to annual costs. Not all of your bills will happen monthly, as some may be paid quarterly or even one time per year.

Many people like to set their budget then use cash because it is impossible to spend more than what you have budgeted with cash.

If you decide not to use cash, the next best choice is a debit card that is directly linked to your checking account.

18 Dollars an Hour Sample Budget

Expense

Amount

Rent/Mortgage

$796

Utilities

$265

Transportation

$397

Groceries

$265

Insurance

$398

Personal Items

$133

Entertainment

$133

Savings/Retirement

$265

18 Dollars an Hour Sample Budget

smart mom hq sample budget 18 an hour

Jobs you can earn 18 an hour salary

There are plenty of work opportunities available for you to earn $18 an hour without a college degree or any type of formal training.

However, you have to be resourceful and you do need a high school diploma in most cases to land one of these jobs.

The U.S. Bureau of Labor Statistics is the best starting place for your employment search (and where the following information in the table is taken from.)

Other potential jobs to consider that are typically in the $18 an hour salary range:

  • Cashier or sales clerk
  • Cook or chef
  • Bartender or waiter/waitress
  • Medical assistant
  • Office manager
  • Administrative assistant
  • Paralegal or legal assistant
  • Certified nursing assistant

Key Takeaways

It is possible to make ends meet on 18 dollars an hour if you spend within your means, which is the total key to making it work.

This salary is above minimum wage and provides you with a solid base to live off of, although there may not be much left over at the end of each month.

The sample budget has included the bills, gas for your car, and food — it covers the basics so if you are careful and follow it if something happens in an emergency situation such as having no heat or getting sick, you will still have some money left over to spend on things like extra food or medicine.

Interested in other job earning scenarios?

Read the entire series on wages to get your questions answered about how to live comfortably on any income and make extra money if you don’t make enough.

You might also like What is Considered a Good Hourly Wage Today and How Many Work Hours in a Year.

Ready to start a budget you’re excited to follow? You don’t want to miss out on how to make budgeting simple and fun!

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