20 an Hour is How Much a Year (Before and After Taxes)

Home » Money » Wages » 20 an Hour is How Much a Year (Before and After Taxes)

If you make $20 an hour and ask yourself, “20 an hour is how much a year,” keep reading to get the specific breakdown.

How much money do you take home yearly if $20 an hour is your paid wage? Can you make this hourly rate fit your personal finance goals?

It depends on several factors, including your tax filing status, the number of dependents you have, and the amount of other income you earned during the year, just to mention a few significant factors.

If you work full-time, typically 40 hours per week, your yearly income would be $41,600.

This is before federal taxes, state taxes, and other deductions are taken out of your paycheck such as social security and medicare or employee deductions.

This also assumes the only time you take off is if your employer offers paid vacation days since paid time off does not reduce your paycheck.

This detailed guide breaks down the most-asked questions about earning $20 an hour with step-by-step explanations on how much you will make each week, biweekly, month, and year before and after taxes are deducted.

And to complete this ultimate guide, we included an example budget to give you a head start with your financial planning!

Keep in mind the numbers may vary slightly because of different variances in the calculation. There are several ways to calculate income. All estimates are approximate.

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 tax deductions and if social security and medicare deductions are included.

If you don’t want to calculate the numbers, we also created a handy calculator to do all the figuring for you!

In fact, we created an entire series of financial calculators!

Let’s dive in!

happy lady working on computer at desk for 20 an hour is how much a year

NOTE: This post may contain affiliate links. Read the disclosure for details.

Table of Contents

How Many Working Days are There in a Year

You must determine the number of workdays a year to get the exact amount.

A year consists of 365 days. Accordingly, there are 52 weeks in a year, with 4 weeks each month (including February).

The exception occurs when the month of February has 29 days instead of 28 days, bringing the total number of days in a year to 366. Every seven years, there is a leap year; the next one will be in 2024.

If you work 8 hours a day, five days a week, you will work 2,088 hours in one year.

Get Started by Downloading the Hourly Wage Conversion Chart (It’s Free!)

hourly wage conversion chart grouped image smart mom hq
Hourly Wage Conversion Chart

*The chart includes base annual salary before deductions for federal, state, and local taxes, Social Security, and Medicare.

What is a Full-Time Job

40 hours a week is considered a full-time job if you live in the United States.

If you are a full-time employee, you work an average of 8 hours daily. You would spend about nine hours at your workplace, including breaks and lunch.

Many full-time jobs offer paid time off.

What is a Part-Time Job

A part-time job generally works less than 30 hours weekly, with 20 hours being the norm.

The number of working days depends on the employer.

For example, an employee could work 4 hours a day for 5 days a week to get in 20 hours of work or 10 hours a day twice a week to get in 20 hours for the week.

We have a complete series of articles on converting your hourly wage to a yearly salary!

Income & Wage Guides

Go to all Income & Wages posts [whole series]

How Much is 20 an Hour Annually

The money you earn before any deductions are taken out of your paycheck is called gross income.

To understand how to figure out how much you will earn in a year if you make $20 an hour, use the following equation as an example:

Hourly pay rate: $20

Work hours per week: 40

Work weeks per year: 52

To calculate how much $20 hourly pay is per year, first, calculate weekly income by multiplying $20 by 40 hours per week.

Next, multiply the product by 52 weeks, like this:

$20 × 40 hours = $800 per week

After you know how much you make each week, multiply that number by 52 because there are 52 weeks in a year.

$800 × 52 weeks = $41,600

The wages earned per year making 20 dollars an hour deliver a base annual salary of $41,600, assuming you do not work overtime.

How Much is 20 an Hour Monthly

To get the most accurate number, use the total working hours in one month.


Work hours in 1 month = 160

8 hours per day x 5 days per week = 40 hours per week

40 x 4 weeks in a month = 160 hours of work per month

Monthly salary:

160 x 20 (wage) = $3,200

$20 an Hour is How Much a Week

Assuming you are working 40 hours per week, use the following formula:

20 x 40 = $800 per week before tax or deductions are taken out of your paycheck

If you work less than 40 hours a week, you can figure out your weekly check by multiplying 20 by the number of hours you work per week.

Remember this number will be larger than your actual take-home pay because it does not include tax or other deductions.

$20 an Hour is How Much Biweekly

There are two ways to figure out how much money you will make biweekly on 20 an hour.

First, take the average weekly pay of $800 and double it (multiply it times 2.)

$800 per week x 2 = $1,600

The second method to determine this is:

40 hours x 2 weeks x $20 an hour = $1,600

20 Dollars an Hour is How Much Per Day

If you want to calculate how much you make per day on a wage of 20 dollars an hour, use the following formula:

20 x 8 = $160 per day

This figure is considering you are working 8 hours a day.

If you work fewer hours, multiply the number of hours you work daily by 20. This will give your daily pay without tax or other deductions being considered.

20 an Hour is How Much a Year After Taxes

The amount you make after deductions from your paycheck is called net income.

This is the amount of your actual paycheck, typically referred to as your take-home pay.

Above, we figured your yearly salary using the hourly wage of $20 before any tax was taken out at $41,600.

However, you have to deduct tax to find your net annual salary.

In the United States, everyone is required to pay the following deductions, which are deducted from their paycheck before they get it:

6.2% Social Security Tax

1.45% Medicare Tax

Federal Tax – the amount varies based on income and other factors

State Tax – the amount varies based on income and other factors

Local Tax – the amount varies based on location

The following example uses 12% as the rough average for tax deductions. Remember the tax rate changes for each person based on personal circumstances.

This is how to figure your net annual salary (the actual amount you will receive per year):

Social Security Tax: ($41,600 × 6.2)/100 = $2,579

Medicare Tax: ($41,600 × 1.45)/100 = $603

Income Taxes: ($41,600 × 12)/100 = $4,992

Total Gross Income = $41,600

Subtract the following (from 41,600) (based on the above figures):

– $2,579 Social Security Tax

– $603 Medicare Tax

– $4,992 Federal/State/Local Taxes

= $33,426 Net Income


There are seven tax brackets in the United States.

Your tax bracket depends on the filing status you select (such as single, married filing jointly, head of household, etc.) and the amount of taxable income you make.

Free Take-Home Pay Calculator: Check out our free Wages Calculator to figure your take-home Pay (income after taxes are deducted.)

20 Dollars an Hour Income Comparison Table

$25 an Hour Income Total
Yearly (52 weeks) $41,600
Monthly (160 hours) $3,200
Weekly (40 hours) $800
Bi-Weekly (20 hours x 2) $1,600
Daily (8 hours) $160
*Monthly Net Income (take-home) $2,786
*Yearly Net Income (take-home) $33,426
25 dollars an Hour Income Comparison Table/smartmomhq.com
*Includes deductions for federal, state, and local tax of 12%, and Social Security and Medicare. Numbers are rounded up to the nearest 10.

Sample Budget on a Salary of $20 an Hour

Expense Category Percent of Budget Budget Amount
Housing 25% $800
Utilities 10% $320
Transportation 10% $320
Food 10% $320
Insurance 10% $320
Personal Items 5% $160
Miscellaneous 5% $160
Recreation 5% $160
Giving 10% $320
Savings/Retirement 10% $320
Sample Budget - 25 Dollars an Hour/smartmomhq.com
NOTE: Budget sample using monthly income of $4,000 with no deductions

Examples of Jobs that Earn 20 an Hour

If you want to know how much you will make in a job specifically, you need to consider the living wage in your location.

Examples of jobs that may earn $20 an hour in your area:

  • Physical Therapy Assistant
  • Truck Driver
  • Medical Coder
  • Police Officer
  • HVAC Installer
  • Route Driver
  • Hotel Manager
  • Carpenter
  • Paralegal
  • Industrial Mechanic

Curious if how much money you make is comparable to others in a similar job? Find out how you stack up in the post What is Considered a Good Hourly Wage Today

Tips to Live Comfortable Making 20 Dollars an Hour

A $20 hourly wage budget is tight for most people depending on your circumstances, such as where you live, how many dependents you support, etc.

The following tips can help cut living expenses, and a second gig may also be worth considering if you find your monthly budget is falling short and need to make more money.

General Money-Saving Tips:

  • Get rid of debt payments
  • Spend less than you make (often called ‘living below your ‘means’)
  • Follow frugal living habits
  • Create and follow a budget
  • Put cash in a savings account every month
  • Set a goal for what you consider good pay and consistently work toward it
  • Know and keep track of your financial situation at all times

Tips to Reduce Your Housing Cost:

  • Move into more affordable living spaces such as a one-bedroom apartment or even go smaller to a studio.
  • Share a house with roommates to split the rent in half or three ways.
  • Offer to do simple upgrades on a rental house in exchange for rent, such as painting or landscaping.
  • Explore if your rent is negotiable and if you have always paid on time and proven you’re a responsible tenant.

Tips to Reduce Other Living Costs:

  • Buy food from the grocery store to cut the expense of 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 such as skipping movies, concerts, etc.
  • Split cable or TV plans with a friend or family member.

If you need to make more than your $20 hourly wage and don’t want to look for a new job, consider a second job on weekends (or your weekday time off) to bring in some extra cash.

It is also worth checking with your supervisor if overtime hours, including overtime pay, are available in addition to your hourly wage.

The following side hustles can help you make more cash on top of the 8 hours you work:

  • Turn your hobby into a side gig
  • Start a blog
  • Start freelancing
  • Complete surveys for cash
  • Start a side hustle – Amazon delivery, Uber driver, pizza delivery, Grub Hub, dog-walking, etc.
  • Consider a part-time job such as Target or Starbucks

You could also earn more money doing one of these less traditional options:

Consider rounding up and selling scrap metal you probably have in your garage for quick cash if you get an unexpected bill.

Once you get your $20-hour salary to work with your budget, you can start investing at a small scale to build a robust financial future.

20 an Hour is How Much a Year FAQ

The following questions are the ones asked most often about earning a wage of 20 dollars an hour.

Is $20 an Hour Good Pay?

It depends on your circumstances. A $20-an-hour salary may be good if you are single, but it may not be enough if you have a family to support.

The following map from the government census shows a comparison of states and median wages.

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

What is Considered a High Yearly Salary?

A high yearly salary is typically considered to be any salary above $100,000.

However, every person has their perspective on an excellent median hourly wage or annual salary.

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!

What Salary Can a Single Person Live Off Of?

A single person can live off a salary of $20 an hour if they have little debt and follow sensible living habits.

Circumstances can be different if the person has a family to support.

20 an Hour is How Much a Year Final Thoughts

Your hourly pay is just one part of the equation for figuring out your take-home pay and yearly salary.

Taxes and other deductions play a significant role too. After it is all said and done, if you make $20 an hour before taxes, you can expect to take home about $41,600 annual pay.

That comes to about $3,200 per month or $800 per week. Of course, depending on your circumstances, these amounts may be higher or lower. Use this as a starting point when budgeting your expenses and financial future.

When working for $20 an hour, keeping your bank account healthy can be difficult, especially if you don’t have a savings account and an unexpected significant expense comes up.

This is where a budget comes in handy and can help you work your way toward financial freedom.

Sometimes it is necessary to have a little extra cash on hand, and you can do this through part-time jobs, starting your own business, or consistently adding money to an account that earns interest, even if it is a small amount.

If you keep working toward increasing your hourly rate to earn a better yearly salary and put a budgeting plan in place, you will be well on your way to less stress and a higher pay-per-hour position.

Starting a budget will also make a huge difference no matter how much money you make.

If you feel your financial goals are going in the right direction and don’t have a budget, that’s great!

However, just think about how much a budget could put even more of your hard-earned money back into your pocket!

The free Budgeting Basics eBook is the perfect resource to get your money under control or fine-tune it in a specific area.

If you need ideas for creating your budget, hop over to 20 free printable budget templates to get you started.

Interested in more job-earning scenarios?

Read the entire wage series to answer your questions about living comfortably on any income and making 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!

About the Author

Top Posts from Smart Mom HQ

Recent Posts

Go to: