You may have just got a raise or landed a new job offering you $27 an hour. Great! But how is this going to impact your life in the grand scheme of things, you may be wondering. To answer this, what you really want to know is: $27 an hour is how much a year?
This article will get into all the nuts and bolts of that question and give you a better sense of your new financial reality.
Throughout this article, we will break down the calculations, taxes, and even give you tips on how to get by on this wage, alternative career paths, and making more money.
How about paying off debt? We’ve also got you covered here.
Stick around till the end, and we will discuss the actions you need to take in order to fully take control of your finances.
$27 an Hour is How Much a Year?
So, what is $27 an hour annually?
Based on the assumption that you are working a full-time job, 40 hours a week, for 52 weeks a year, without any unpaid time off, that would be:
$27 x 40 hours x 52 weeks = $56,160
It is important to bear in mind that this is your gross income, or your income before any deductions, taxes, and other expenses are taken into account.
Due to these other factors, your take-home pay will be less than the amount above.
With Paid Time Off
Paid time off, or PTO, is a policy that allows employees to take a number of days off each year without sacrificing any wages.
If you are enjoying PTO from your employer, the total calculation of your compensation is exactly the same as above.
Some states have laws that requires employers to provide a certain amount of PTO, however it is generally at the employer’s discretion to decide. As a result, employers who want to hire and retain talent will offer more favorable PTO terms.
If your employer offers PTO, then you will still earn $56,160 a year – as long as you don’t take off more days than prescribed by your employer.
Without Paid Vacation
If you are working without paid vacation, your salary will decrease for each day that you are away from your work.
To illustrate this, consider that your hourly pay is $27, you work 40 hours a week, and you want to take 2 weeks off. That’s a total of 80 hours of lost work.
- $27 hourly pay x 40 hours a week = $1,080 weekly income
- $1,808 weekly income x 2 weeks off = $2,160 (for 80 hours of lost work)
- $56,160 annual salary – $2,160 (lost work) = $54,000
Therefore, your total annual salary without paid vacation will be $54,000. Generally speaking, taking time off without paid vacation will reduce your salary, which unfortunately is the case for many hourly employees.
The table below shows how much your annual salary would decrease depending on the number of weeks you take off work.
| Weeks Off | Annual Salary |
|---|---|
| 0 | $56,160 |
| 1 | $55,080 |
| 2 | $54,000 |
| 3 | $52,920 |
| 4 | $51,840 |
| 5 | $50,760 |
To make sure that you are compensated fairly for your work, you may want to consider negotiating with your employer for perks that you are not currently getting.
Alternatively, you could make up the lost hours by working longer than usual some weeks and receive overtime pay.
$27 an Hour is How Much a Year After Taxes?
In this section, let us discuss how much a $27 hourly rate would earn you each year after income taxes.
Calculating your after-tax income will greatly depend on a number of factors, namely; the number of hours worked each week, your tax rate bracket, and other deductions which vary between employers and states.
However, we can make a rough estimate by assuming that you are working 40 hours a week for 52 weeks a year.
Let’s assume an effective federal tax rate of 10%, an effective state tax rate of 4%, and a 7.65% tax rate for FICA (social security & medicare).
- Federal taxes = $56,160 x 0.1 = $5,616
- State taxes = $56,160 x 0.04 = $2,246.40
- FICA tax = $56,160 x 0.0765 = $4,212
- Total tax = $12,074.40
- After-tax income = $56,160 – $12,074.40 = $44,085.60
Again, this is just an estimate and your actual take-home pay may vary based on different factors.
It is always best to consult with a tax professional or use an online annual salary calculator for a more accurate estimate.
How Much is $27 an Hour Per Month?
Assuming that you are working full-time at $27 an hour, you are going to receive $4,320 before tax each month.
$27 (hourly wage) x 40 hours (per week) x 4 (weeks of the month) = $4,320
How Much is $27 an Hour Bi-Weekly?
While on a bi-weekly basis, your earnings for 2 weeks’ work are $2,160.
$27 (hourly wage) x 80 hours (bi-week) = $2,160
How Much is $27 an Hour Per Week?
By working 40 hours per week with a $27 an hour salary, you will make $1,080 a week.
$27 (hourly wage) x 40 hours (per week) = $1,080
How Much is $27 an Hour Per Day?
If your average work day is 8 hours, then you will make $216 a day with a $27 hourly rate.
$27 (hourly pay) x 8 hours (per day) = $216
These calculations of monthly income, bi-weekly, weekly, and daily are all based on the assumption that you are working a full 40 hours per week, or 8 hours per day.
And the total amount is all solely based on your income before tax, deductions, and expenses.
$27 an Hour Comparison
Here is a summary of what you can expect to earn on $27 an hour over different time frames.
| $27 an Hour | Salary |
|---|---|
| Yearly | $56,160 |
| Monthly | $4,320 |
| Bi-Weekly | $2,160 |
| Weekly | $1,080 |
| Daily | $216 |
Annual Salary of Someone Earning $27 an Hour
We have already discussed the total annual salary of a person earning $27 an hour, assuming they are working a full 40 hours for 52 weeks.
Their pre-tax (gross) salary is $56,160, while their post-tax (net) salary is likely to be between $40,000 and $50,000 depending on a variety of factors.
But the question is, why do we need to understand a person’s total earnings with the given hourly wage?
The reason is simple. Knowing our annual income gives us a useful benchmark to make financial plans.
Is $27 a Good Hourly Wage
So now we know how much we can make a year earning $27 an hour, considering taxes, deductions, PTO, and other factors.
But here’s the question: Is $27 an hour good pay for the average person?
While this question is a subjective one that depends on a variety of factors, it is generally considered good pay in most parts of the world.
However, this will obviously depend on the type of work, region, experience, and expertise of the worker.
There are some entry-level jobs where a $27 hour salary pay is a great wage and excellent compensation, but may be considered lower than the average for more specialized senior positions.
Can You Live on $27 an Hour?
In general, earning $27 an hour is certainly enough to get by, especially if you don’t have dependents or a great deal of debts.
By knowing your potential total earnings of a $27 an hour wage, and by having this consistent income rate, you can budget your expenses and prioritize your financial goals.
Additionally, you can also use a salary calculator to have an estimate to maximize your earnings, and make wise financial decisions.
Tips For Living on $27 an Hour
Living on a $27 an hour wage can be a little challenging, though it is certainly achievable.
How?
With proper budgeting and financial planning.
Here are some tips for living on 27 dollars an hour:
- Making a budget – creating a monthly budget is the start of planning and prioritizing to save money. Make a list of all your expenses, carefully organize your funds, and prioritize your expenses appropriately.
- Keep track of your spending – always track your spending and make adjustments if necessary. Simply use a budgeting application, spreadsheet, or notebook to help you track what you are spending.
- Managing your debt – making timely payments on your high-interest debt, like credit cards and personal loans. This will help you to mitigate financial stress and help save money on interest.
- Shop smart – search around for alternatives to cut costs on foods and other necessities. Buy generic or store-brand items, use vouchers, coupons, and purchase at discount stores.
- Public transportation – if available, you can save gas money and car expenses by using public transport. Consider taking a bus, biking to work, and carpooling.
If you earn less than $27 an hour, this $18.50 an hour is how much a year? article gives some helpful tips about how to budget on this even lower income.
Places to Earn $27 an Hour
Are there places in which you can earn 27 dollars an hour?
While there are many places you can earn 27 dollars an hour, it greatly depends on the industry, your qualifications, and your experience.
Let me give you some examples of careers that offer this kind of wage:
- Registered Nurse – high in demand with opportunities for advancement
- Electrician – high potential for growth with additional certification
- HVAC Technician – a career that needs experience and certification
- Carpenter – experienced carpenters can earn a decent median hourly wage and have the potential to work for themselves
- Computer Support Specialist – people with a strong understanding of computer systems are always in high demand
- Construction Equipment Operators – lots of potential for annual raises
These are just a few examples of careers where you can earn 27 dollars an hour, however there are plenty of other options depending on your abilities and interests.
To find the most suitable career for you, it is important to research the job market and take your qualifications and experience into account.
This $32 an hour is how much a year? will help you understand whether you’re qualified enough to land some of the jobs that pay this higher wage.
Best Ways to Increase Your Hourly Wage
We have now a piece of useful information on how much will be the total annual earning for a 27 dollars an hour pay, as well as the importance of prioritizing expenses, tips, and careers to have one.
And whether you are looking to pay off your debt, secure for the future, or simply just want to increase your overall income.
Are there any ways, or best ways to increase your hourly wage?
Each of these methods can boost your earning potential, improve your financial status, and achieve your long-term financial goals.
I would highly encourage you to:
- Ask for a raise
- Get another job
- Expand your skillset
- Take on additional responsibility
- Freelance or side-hustle
However, it is crucial to keep in mind that raising your hourly pay takes time, effort, and commitment to continuing your professional development.
With dedication, discipline, and hard work, you can take charge of the financial stability and security you desire.
Ask For a Raise
Consider asking your employer for a pay increase if you believe that you are underpaid based on the work you are producing. With due diligence, prepare yourself to negotiate for a raise based on your contribution to the business, your achievements, and your performance.
Get Another Job
In case you can’t raise your compensation with your current employer, consider looking for a better-paying position elsewhere. Conduct thorough research on similar jobs in your area that is looking for someone with your skill set and experience.
Expand Your Skill Set
Your value to an employer improves as you get more proficient at your job. Consider taking classes and attending sessions to help you learn new skills that will help you boost your effectiveness and the value you can offer to your employer.
Alternative Ways to Make More Money
Sometimes, it may not be possible to reach your desired financial goals with the above tactics.
Understanding the importance of having multiple income streams is a great way to increase your income.
That’s why you should explore alternative ways to make money to bridge the gap.
Below are some of the methods that can improve your financial stability, reduce your reliance on a single source of earnings, and achieve better financial freedom.
Start a Side Hustle
An excellent method for boosting your income is to start a side hustle.
This is a great way to turn your abilities, expertise, and interest into a profitable business venture.
The best part is that you don’t need a lot of money to start, and you have the flexibility to work on it whenever you have free time.
Some of the popular side hustles include tutoring, graphic design, freelance writing, social media management, and pet sitting.
You can also sell handmade crafts or products through online marketplaces like Etsy, eBay, and Amazon.
Earn Passive Income
What is passive income in the first place?
Essentially, passive income is anything that generates money without actively working for it.
This can include: rent from a property, royalties, or even dividends from stocks.
Building passive income can help you create a stable source of income that takes less work. However, to generate something like rental income in the first place, you need to buy a property and manage it.
Similarly, to earn dividends, you first need to purchase stocks and mutual funds.
In other words, you need to put some work in to build up your capital first. For this reason, passive income opportunities tend to come later in life.
Stick to a Budget
A foundational aspect of managing personal finances is sticking to a budget.
By creating and sticking to a budget, you can easily pinpoint areas where you might be overspending and plan on how to mitigate it.
Allocating a specific amount of money to each need and priority. Make sure to stick to and track your spending to ensure that you will stay within your budget.
As a result of this, it can help you to save more money and reduce your overspending.
Pay Off Debt
Another key step towards achieving your desired financial freedom is paying off debt.
Ultimately, this lowers the amount of money you owe and can save thousands of dollars in interest over time.
How?
Well, let’s go back to a previous section where we talked about the importance of sticking to a budget and identifying areas to cut back.
There, we suggested prioritizing your debts based on interest rates; starting by paying off those with the highest rates first. Another thing to consider is consolidating your debt or refinancing high-interest loans to low-interest loans.
Lastly, avoid taking on additional debts, and focus on making regular payments towards your existing debts.
Summary
In summary, understanding your hourly wage and total annual pay is a vital first step in achieving financial freedom.
Knowing your income allows you to create an appropriate plan and budget, as well as make wise financial decisions on your spending and savings.
Whether you earn 27 dollars an hour or more, there are always different approaches to maximize your income.
By taking a proactive approach to your finances and making well-informed strategic decisions, you can certainly build the foundation for your desirable, secured, and prosperous financial future.