Are you thinking about changing jobs? You’re not the only one.
Some states, like Colorado, are requiring companies to include salary ranges on their job postings, but if you are coming from a position that’s paid hourly, you will have to do some math to see how these new jobs will stack up.
$50,000 a Year Is How Much?
For this conversion, assume that there are no benefits to factor in. If someone works exactly 40 hours per week with one week off, they will work 2,040 hours per year.
If you don’t feel like doing the math for your check, check out this table:
|Pay Period||Gross Pay||Math|
|Hourly||$24.51||$50,000 / 2040 hours|
|Daily||$136.99||$50,000 / 365 days|
|Weekly||$961.54||$50,000 / 52 weeks|
|Biweekly||$1923.08||$50,000 / (52 weeks / 2)|
|1st and 15th||$2083.32||$50,000 / (12 months x 2)|
|Monthly||$4166.67||$50,000 / 12 months|
How Much Can I Buy with a $50,000 a Year Salary?
You know about how much you will make, but what does that really mean? $50,000 per year means that for every hour worked, you could buy about 14 cartons of eggs or almost 7 gallons of milk.
Factors That Affect Your Take Home Pay
Gross pay is not how much is deposited in your bank account. Gross pay is the amount before taxes, insurance, and other deductions are made. It’s also the amount before any benefits are added.
If you get two weeks of paid time off, then you would only work 1,960 hours per year instead of 2,040, increasing your effective hourly rate to $25.51.
If you plan to get your insurance through your employer, that could increase your effective hourly rate. Tuition assistance could more than double your effective hourly rate. Only include these kinds of benefits if you are planning to use them. If you’re not going to use it, then it’s not a benefit to you.
Taxes may take one of the biggest chunks taken out of your pay, but they are the most predictable from job to job because all the information is on the IRS site. Unless you are planning on a huge pay increase or another life-changing event, like a baby, then you can use last year’s tax rate to estimate for this year’s.
You will also have to consider your state income taxes. Living in California or New York will almost double your tax obligation. You won’t have to pay any state income tax if you live in Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington or Wyoming.
$50,000 per year is approximately $24.51 per hour, but it’s not as simple as it may seem to convert annual salary to hourly pay.