Have you recently started a job earning 20 dollars an hour and want to know what that is for the year?
Maybe you are considering a job that pays 20 dollars an hour and want to know if you can live off it or not?

Or are you curious and want to know more? Whatever the reason might be that brought you here today, we have the answer for you!
Working out how much you will earn for the year and if you can live off it can be challenging.
Everyone has different financial needs and the last thing you want is to be left struggling to make ends meet, unsure how you will pay for food or heat your home.
Sure 20 dollars an hour sounds like a lot, but is it enough for you to live on?
Well, that’s what we are here to tell you! We have a complete guide coming up that will walk you through what 20 dollars an hour looks like for the year if you can live on it or not, and some budgeting tips and tricks that are sure to make your money go further! Just keep reading to find out more.
20 Dollars An Hour Is How Much A Year?
Let’s get straight into today’s article! How much 20 dollars an hour is in a year depends on a few factors.
The first one is how many hours you are working every week. After all, the more hours you work, the more money you will make!
We based our calculations on a typical 40-hour working week, which is the average number of hours a full-time employee works in a week.
If you work part-time, then your hours worked will be less, meaning you will make less money.
To calculate quickly how much you could make in a year on 20 dollars an hour, we did the following:
40 (hours of work a week) x 52 (weeks a year) = 2,080 hours worked per year.
Next, we multiplied the number of hours worked a year by 20 (dollars). This gave us a final answer of 41,600. So working a full working week every week earning 20 dollars an hour, you could make $41,600 a year!
And for those working part-time, you simply need to swap out 40 for the number of hours you work a week. So if you work 25 hours a week, you would be earning $26,000 a year!
It is important to note that these numbers are what you would earn before tax.
Any taxes you pay, pension contributions, student loans, or other payments that come out of your paycheck will be taken out of your $41,600 before you see it!
When working out a budget for the year, month, or week, you will want your net pay.
This is usually the number on the bottom of your paycheck and shows you what you will be paid after tax and other deductions are removed.
You will also want to consider any holidays you take from work, whether they are paid or not, and any sick leave you might need to take.
If you work at a company that offers paid vacation and sick leave, then chances are your final number will look like the one we listed above, but if not, then your annual pay will look a little lower.
You can find out what benefits you are entitled to by checking your contract with work or speaking to an HR representative from the company.
Usually, they can walk you through your benefits and the type of leave you are entitled to should you need to take it.
You will also want to consider any public holidays, like Thanksgiving and Christmas that would close where you work.
Again, whether you are paid for these public holidays or not will depend on where you work.
You might also have access to extra time or additional pay if your company is open on these holidays and you work these days.
Again, HR or your work contract is a good place to find this information out.
Once you know how many days or hours you will work for the year, you can do the calculation again to get a more accurate pre-tax number! Now that we have established what 20 dollars an hour looks like for the year, let’s take a look at how it looks if you are paid monthly or weekly.
How Much Is 20 Dollars An Hour A Month?
How much 20 dollars is a month will again depend on how many hours you work that month.
If you work the same number of hours every month, then unless you take a sick day or leave from work, your pay should look the same every month.
To work out the number, you can calculate your average hours worked a month (173 for those working 40 hours a week) and multiply it by $20. This gives you a pre-tax paycheck of $3,460.
Again, you can change the number if you work part-time to find out what your pay will look like.
For those working 25 hours a week and earning $20 an hour, you would have a gross pay of $2,160 (108 hours x $20 an hour = $2160) Gross pay is what you receive before any taxes or deductions are taken from your paycheck.
Remember, we want our net pay to find out what we are left with every month to live off!
How Much Is 20 Dollars An Hour A Week?

If you are paid weekly, the numbers will look different again! The calculator is pretty simple to do though.
Simply multiply the number of hours you work that week by 20 to get your weekly wage.
For full-time workers, this gives you a weekly gross salary of $800. For those working part-time, you can swap out the 40 hours for however many you earn. This might look like the following calculation:
25 (hours worked a week) x 20 (dollars an hour) = 500 dollars a week.
Remember, this is your gross pay and does not take into consideration any leave or vacation days you might have that week.
It also doesn’t take into account any taxes or deductibles that come out of your paycheck before it hits your bank account!
How Much Tax Do I Pay Earning 20 Dollars An Hour?
We’ve mentioned it often enough, now let’s dive in and take a closer look at taxes! How much tax you pay does vary from person to person, but we will give you a general idea that you can use and apply to your situation!
For those earning $41,600 (working full time, 40-hour weeks) you can expect to pay roughly $6,489 a year in taxes or 15% of your paycheck.
Within this 15%, you would pay Social Security, Federal income tax, and Medicare payments.
You might also pay an additional income tax, depending on where you live in the US (only 9 states don’t pay this) which is roughly 3.2% more in taxes.
So for those working 40 hours a week, after-tax, you can expect a pay of $35,131 a year. And for those working part-time, you can expect to earn about $22,596 a year (based on 25 hours a week).
The fewer hours you work, then the less tax you will often pay. You can find a breakdown of the taxes that you pay and other deductibles on your paycheck.
Usually, you will see your gross pay, followed by the deductions of the taxes you pay, and your final net payment.
Along with your tax deductions, any pension payments you make, or other deductibles that come straight out of your payment will be seen here.
If you need help deciphering your paycheck and working out how much tax you should be paying, you can speak to an HR representative at work or a financial advisor.
They can help you navigate your paycheck and provide you with any support or advice if needed.
Can You Live Off 20 Dollars An Hour?
So can you live off 20 dollars an hour? It sure sounds like a lot, even after taxes, but is it enough? Well, it depends on where you live, how much money you need, and your lifestyle.
It’s a sad fact, but the reality is that in some places, 20 dollars an hour is not enough to cover living expenses.
In other areas, 20 dollars an hour is more than enough to live life as you want and have some savings.
When considering if you can live off 20 dollars an hour, you will want to create a budget.
Start by calculating your monthly or yearly salary, based on the number of hours you are working and the amount of tax you are paying.
Once you have this number, jot it down at the top of a page.
Underneath, write down all the expenses that you have to pay. Things like your rent or mortgage, utility bills, food, phone bills, and other expenses should be written down and deducted from your paycheck.
This will show you how much you have left each week or month to spend on what you want or save for larger payments, for emergencies, or for a holiday.
You might not be left with much money after paying your expenses, or not enough money to pay your bills.
In these cases, you might need to get a little creative with your budget. Don’t worry, we have some tips coming up to help you live off 20 dollars an hour!
Budget Tips To Help You Live Off 20 Dollars An Hour
So how can you live off 20 dollars an hour? We have some budget tips coming up for you!
Switch Providers
Switching providers for your gas, electricity, water, or Wi-Fi can help you to save some money.
By switching to a fixed plan, you can avoid fluctuating prices and know what you are paying every month.
You can often get cash bonuses or extra rewards if you switch to a different plan too.
Make the most of comparison sites to help you find fixed deals that can help you save some money and still get the services that you need.
Streamline Your Streaming
It is surprising how much paying a few dollars every month for several subscriptions adds up! By cutting down on the streaming services you use, you can save potentially hundreds of dollars a year! Consider carefully how much you use the services and pick one or two that you use the most.
Doing so means that you can still enjoy your favorite movies and shows, without wasting money on services that you rarely use.
Switch Banks
Switching bank accounts or providers is an excellent way to get more for your money.
This can help anyone on any budget get a few more dollars. You can make up to $1,000 by switching accounts or banks or even referring a friend to switch to your bank.
These deals can vary from bank to bank and from time to time, so be sure to check them frequently so that you switch at the best time.
Doing so won’t help your budget long-term, but it’s a good short-term option if you are looking for some quick cash!
Earn Cashback
Cashback apps or sites are a fantastic way to boost your income! You can download them directly to your phone and use them every time you shop.
You will earn money from each purchase which can then be spent in other stores or used to cover your bills!
You don’t earn a lot of money from each purchase, but they all add up, helping you to make a little more money! There are lots of different cashback apps and services that you can take advantage of today.
Set A Budget And Stick To It
We know it sounds super basic, but setting a budget and sticking to it is one of the best ways to save money and not spend more than you earn.
Following a budget can be boring, but it will help you see where your money is going and make any changes where necessary.
Once it is all written down, you will have a better idea of your finances and just where that 20 dollars an hour is going!
There are lots of budget planners and templates online that you can take advantage of, so be sure to do a quick search or create your own that suits you and your family’s needs! You can also use budgeting plans like the 50/30/20 template to divide your finances and make your money go further!
Final Thoughts
And there you have it! 20 dollars an hour can be enough to live off for a year depending on your outgoings and lifestyle.
Thankfully, there are lots of ways that you can make your money go further and tailor your budget to suit you.
Be sure to take some time to set a budget and stick to it, to make sure that your money lasts.