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So, congratulations you just landed your new job and negotiated to be paid $25 an hour. But you feel unsure and ask questions such as; what is 25/hr yearly salary? $25 an hour is how much a year? Can I actually live on this pay or do I need to identify ways to increase my hourly wage?
In this guide, we’ll be looking into the following:
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Perhaps, you’ve just began earning $25 an hour and are thinking if it’s worth your career or enough to cover your living expenses.
Unfortunately, it can be quite difficult to answer a yes or no as it all depends on your lifestyle and living condition.
For instance, an employee living in Virginia as a single adult with no kids earns a living wage of $19.40 an hour. This means the employee is only earning just over the living wage when making $25 an hour.
This doesn’t apply to an employee with kids. If the employee has a partner with just one of them working, the living wage is $27.93 (no kids).
This makes about $2.93 an hour over the $25 wage. With kids, there will be increase in the living wage.
With these considerations in view, we’ve curated a list of the best tools you need to start using when earning $25 an hour. You’ll find this list as you read further down this article.
For now, let’s examine the comparison table below of $25 an hour over various time ranges.
| $25 An Hour | Pretax Income | After-Tax Income |
| Yearly (52 Weeks) | $52,000 | $39,000 |
| Monthly (160 Hours) | $4,000 | $3,000 |
| Biweekly (80 Hours) | $2,000 | $1,500 |
| Weekly (40 Hours) | $1,000 | $750 |
| Daily (8 Hours) | $200 | $150 |
| Hourly (1 Hour) | $25 | $18.75 |
Considering there’s a total of 52 weeks in the year, if you work a full-time job, you will work on average 40 hours a week. So, when you multiply 40 hours by 52 weeks, it results in 2,080 total hours worked annually.
Therefore, to get the amount you’ll be earning in a year making $25 an hour, we simply multiply the $25 per hour wage by 2,080 total hours worked yearly. This results to an annual salary of $52,000 when making $25 an hour.
Note that you may earn lesser than this amount annually if you work fewer weeks or take personal days or PTOs.
While the amount you pay in taxes is dependent on various factors, we can assume a 25 to 30% tax rate to be reasonable.
This means up to third to a fourth of your salary would be taken away by taxes.
So, when making $25 an hour, you’ll be expected to take home $39,000 annually after-tax deduction. With your pre-tax salary being $52,000, your after-tax would be $39,000 annually.
It is important to note that you can minimize how much you pay in taxes using several ways. However, for an average individual, assuming 25 – 30% tax rate is reasonable.
Assuming you’re working 40 hours per week, if you earn $25 an hour, you’d be making $4,000 in a month.
This amount you make per month can vary slightly based on the number of hours you decide to work, either more or fewer hours.
Employees who work over 40 hours per week sometimes might be eligible for overtime pay which is about 1.5 times your regular earning.
After deducting an assumed 25% tax rate, and working 40 hours per week, making $25 an hour earns you $1,500 biweekly after tax deduction.
This calculation is done by simply multiplying $25 by 40 hours and 2 weeks.
You’ll be making $1,000 per week if you earn $25 an hour.
This amount is calculated by multiplying 40 hours by $25 an hour assuming you work full-time for all four weeks of the month.
Considering a standard daily work day of 8 hours, making $25 an hour earns you $200 per day.
This is calculated by multiplying standard 8 hours by $25 an hour.
Note that you can work 4 hours at $25 per hour to earn $100 daily.
When referring to hourly wages and salaries, you’ll likely be hearing common terms such as yearly and annual salary.
These terms are basically the same, but phased slightly differently. $25 an hour amounts to $52,000 annually or yearly.
This answer is gotten by simply multiplying $25 by 40 hours by 52 weeks in a year.
Find out: $17 an Hour is How Much a Year? – Before and After Taxes
When an employee makes $25 an hour, they earn $52,000 annual salary.
This is calculated by multiplying $25 by the standard 40 hours working hours by 52 weeks.
Earning this salary, it is reasonable to expect a 25% tax deduction annually. Therefore, the after-tax salary becomes $39,000.
When you work up to 20 hours weekly as against the full-time 40 hours, and for 52 weeks, you’d be earning $500 weekly totaling $26,000 annually.
Alternatively, when you choose to work 35 hours weekly, which can technically be seen as part-time working, you’d be earning $875 weekly, totaling $45,500 annually.
| $25 Per Hour – Full Time | Total Income |
| Yearly (52 weeks) | $52,000 |
| Yearly (50 weeks) | $50,000 |
| Monthly (173 weeks) | $4,333 |
| Weekly (40 hours) | $1,000 |
| Bi – Weekly (80 hours) | $2,000 |
| Daily Wage (8 hours) | $200 |
| Net Estimated Monthly Income | $3,308 |
***These are assumptions based on simple scenarios
Not every employer offers paid time off especially being an hourly worker.
So, we’ll be looking into the both scenarios for when you get or do not get paid time off.
For the purpose of this illustration, we’ll be assuming you work the standard 40 hours weekly over the course of the year.
Many hourly workers enjoy 2 weeks of paid time off. This set of employees makes $52,000 annually.
This is just equivalent to earning annual salary of $52,000 making $25 an hour.
For these set of employees, it is best to plan for less income as not all employers offer paid time off to their hourly employees.
As it is with life, there are times you need to take some personal days for emergencies, vacations, or even sick time.
So, by assuming you take 2 weeks off without paid time off, it means you’d be working a total number of 50 weeks making total hours of 2000 by multiplying 40 hours a week by 50 weeks a year.
Therefore, to calculate your yearly salary without paid time off, you’ll multiply 40hours by 50weeks by $25 = $50,000
Find out: 6 Proven Strategies for Building Career Resilience
You’re probably thinking how possible it is living on your own off making $25 an hour. Considering rent and mortgage payments, can I cope earning just $25 an hour?
Luckily for you, with the Cents Plan Formula, using the best-case scenario, you’ll learn an effective way to budget your $25 an hour pay check.
Note that when using these percentages, the net income was considered due to tax deductions. This means the $25 an hour became $19.09 after tax deductions, averaging $3,208 per month.
High-level view of the $25 per hour budget according to Cents Plan Formula:
50% basic expenses – $1654.25
20% money saved – $681.70
10% generous giving – $330.85
20% fun spending – $661.70
0% debt – $0
This strategy will definitely not be realistic and achievable by everyone. So, it is important you focus on ways to reduce your basic expenditure and debt to allow more money for savings and miscellaneous.
Let’s further elaborate an example budget of $25 per hour using the ideal household percentages. This example is best used for comparison.
| Category | Ideal Percentages | Sample Monthly Budget |
| Giving | 10% | $217 |
| Savings | 15-25% | $650 |
| Housing | 20-30% | $1,213 |
| Utilities | 4-7% | $217 |
| Groceries | 5-12% | $329 |
| Clothing | 1-4% | $22 |
| Transportation | 4-10% | $195 |
| Medical | 5-12% | $217 |
| Life Insurance | 1% | $22 |
| Education | 1-4% | $33 |
| Personal | 2-7% | $65 |
| Recreation/Entertainment | 3-8% | $130 |
| Debts | 0%-Goal | $0 |
| Government Tax (including Income Tatumx, Social Security & Medicare) | 15-25% | $1,025 |
| Total Gross Income | $4,333 |
In usual cases, you don’t exactly make 25/hr. You typically make $25.18 or $25.66. It is essential you bear this in mind and understand it is roughly approximated.
Find out: Clubhouse Networking: 5 Ways to do it Right for Jobseekers
With your likelihood to double the minimum wage earning $25 an hour, things should be quite easy to live off earning this amount per hour.
To have a clearer answer to the question “can I truly live on $25 an hour?”
We can emphatically say yes you can, based on the budget example shown above.
To effectively live on $25 per hour, you might consider living in a low-cost area or get a little creative by having a roommate to share the cost for rent.
Furthermore, your fun spending should be evaluated and reduced as many of those expenses are not mandatory and can break your budget.
This section is a very critical aspect of this article as it teaches proven and effective ways you can increase your hourly income.
Let’s get a bit more serious. I must say to you that you deserve more- you are doing your best and your value is higher than what your employers pay you.
That said, let’s dive into proven ways you can increase you hourly wage to live life on your terms.
While you might feel unsure and skeptical about doing this, it’s however a sure-fire way to increase your hourly wage.
Be bold enough to ask your manager for a raise. Afterall, you never know what the answer will be until you ask.
So, why not shoot your shot on this?
Looking for a new job perhaps in a completely new sector is another great way to increase your hourly wage.
While seeking to land a new role in perhaps a totally different industry might take you off balance from your comfort zone, you never know what good might accompany this shift.
Usually in many cases, if you are looking to change your financial situation, you must begin with a career transition or change.
With today’s economy of things, it has become almost mandatory to find alternative sources of income if you desire to live life at your own terms.
You need to get on other hustles outside your traditional 40-hour a week job. In most cases you’ll get to a point where you are maxed on what you can make in your current role.
While there may be some advancement, in many cases, there just isn’t much room for growth.
So, as a matter of importance, you need to find other ways to make money. Few tips to help is by doing things you enjoy, and turning your hobbies into ways to make money.
In today’s society, there is no limit on how you can earn a freelance income. Do something that you are passionate about and turn your hobby into a way to make money.
Find out: 32 Best Paying Jobs in Finance Consumer Services
In this section, we’ll detail essential tips to help you live on $25 an hour wage.
Find below the most important tips you should consider to live on $25 an hour wage.
Always remember the golden rule; never spend more than you make.
This rule is important to obey if you don’t want to be caught in that dreadful debt cycle. You must always ensure that your expenditure is less than your income.
And talking about Income, I do not mean your $25 per hour wage. I’m referring to the amount left after taxes deduction which is your net income.
Happiness must be at the top of your priority. And living below your means can actually make you happier according to science, proving less is better.
The quest for contentment has been a struggle for most people over the years. This struggle is fueled by our desire to own that new shiny bracelet, the thing next door, or the stuff your friend or family member got etc.
Beside all these, our society and social media has trained our minds that we need all of this stuff.
Have you ever taken a break to realize what you really need?
As you come in tune with contentment, you’ll begin to focus on the important things you need and less on what you want. This way, you’ll be in more control of your finances.
It is vital you make saving money fun. By doing this you can be able to keep your expenses low, while identifying more ways to make your savings fun.
Consider the following tips to make your savings fun:
The simple logic here is, do you want more out of life? Or you never want to settle for less? Then find ways to make more money. Period.
Finding ways to make more money could be through starting a side hustle, a second job, asking for a raise, changing careers, or picking up extra hours.
Whatever route you take, ensure you look for ways to earn extra money.
Find out: 40+ Best Paying Jobs in Business Services
It is essential you take into consideration the amount of State taxes paid compared to a state with income taxes.
Also, if you are living in one of the higher taxes State, you might want to consider relocating to no taxed states.
Higher taxed states include; California, New Jersey, Oregon, Minnesota, District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income around 7.65% – 13.30%.
States that do not pay State Income taxes on wages include:
Not paying taxes is a great way to increase your paycheck.
Budgeting is an essential skill that’ll help you manage your finances and also help you live on your $25 an hour wage.
While developing a budget is great, you must learn how to use it.
You also must not budget down to every last penny. Let the goal of your budgeting be to ensure your expenditure is less than your income.
Interests on debt is ridiculous. Unfortunately, that is how many of these company’s make their money.
If you find yourself paying within 5-20% interest rate, then it’s high time you had quickly cut down on your debt.
You’ll find out how easy it’ll be for you to start saving money once you are debt free.
While you might suffer some setbacks trying to offset these debts, don’t worry, with patience and persistence you’ll be able to overcome in no time.
To find jobs that pay $25 per hour, your first step is to craft a powerful, branded resume and cover letter that’ll set you apart and give you a competitive edge over other candidates.
Generally, $25 an hour is a good pay. It can even get better as increase in the number of working hours leads to increase in amount earned.
For instance, when you get paid every two weeks. If you work part-time, 25 dollars an hour, 20 hours a week, you would earn $1,000 before taxes.
Also, if you work full-time, every two weeks you would make $2,000 before taxes, and after-tax deduction, you would make approximately $1,500.
When 25% tax rate is deducted from the $25 hourly rate, you will find your after-tax hourly rate is $6.25 less than your pre-tax rate.
Therefore, $25 an hour before taxes is equal to $18.75 an hour after taxes.
Find out: How Many Jobs are Available in Consumer Services? Full Guide
In this article, we learnt 25 an hour is how much a year, along with all possible circumstances that can impact your net income.
We also learnt you can effectively live on $25 an hour using a budget sample.
So, for the question of “how much is 25 dollars an hour annually?”…
$52,000
Furthermore, this article teaches how to increase your hourly wage and highlighted jobs that pay $25 an hour.
Finally, we furnished a sample budget you can use to guide your expenditure.
WRITTEN BY
CEOMichaelHR is made up of professional resume writers and career experts with backgrounds in HR, recruiting, career coaching, and job placement.
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