How much does 20000 a year equate to hourly?
The annual salary of $20000 equates to about $10 per hour. Depending on the experience and bonus structure for that position, an hourly rate could be anywhere from $8 to $15. This is not a standard answer for every job, but most companies follow a similar range.
The median hourly wage for a worker in the United States is around $16.50 as of 2018, according to the Bureau of Labor Statistics. The BLS does not provide information regarding wages by job title or specific company; this article covers general principles that should apply almost universally.
An entry level worker might expect to make around $11 per hour, while someone with several years of experience might be able to command closer to $19 per hour.
Advice for Converting Annual Salary to Hourly
The first thing to know is that you’re not going to be paid biweekly or monthly or even quarterly. You’re going to be paid annually. This means that your first step is to take your annual salary and divide it by the number of times you get paid each year.
If you’re paid biweekly, as many salaried employees are, you’ll be paid 26 times per year. If you’re paid monthly, as many hourly employees are, you’ll be paid 12 times per year.
If you’re paid quarterly, you’ll be paid four times per year.
Why is it important to understand the difference?
If you don’t understand the difference between your annual salary and the hourly rate you’ll be paid, you could be in for some unpleasant surprises. Let’s take a simple example:
Say you’re offered a salary of $40,000 per year and you have no idea what that converts to hourly. If you work a standard 40-hour work week, you’ll make $40,000. Easy enough. But what if, for some reason, you end up working 60 hours each week, like many people do?
What if you get a promotion, but the raise is only 2% of your current salary? Again, if you don’t know the difference between annual salary and hourly rate, you could be in for some nasty surprises.
How much time does a year of experience earn you?
If you’re trying to figure out how much time a year or two of experience will earn you, first think about the difference between someone with no experience and someone with a year or two of experience. What are the key differences between the two workers?
The worker with experience will have learned the ropes. They will be more efficient and effective and make fewer mistakes. They will know their way around the office and have a better idea of the skills they bring to the table.
The worker with experience is also likely to have a network of connections, both at the company where they work and in the industry as a whole. This is particularly true in fields like engineering, computer programming, medicine, and sales/business development.
What is the standard hourly wage for a role?
The standard hourly wage for a role will vary from company to company. But, there are some general figures that are helpful to know.
Entry-level positions in sales, for example, are often around $10 per hour.
- Workers in the office who are helping clients or customers might make around $12 per hour.
- Engineers, computer programmers, and other workers in skilled technical fields should expect to earn around $20 per hour.
- Workers with a lot of experience in technical fields or who are leading teams of others might make $30 or even $40 per hour.
Again, the exact figures will depend on the company you’re with, the industry you’re in, and the size of the company. But, it’s helpful to have some general figures in mind.
Which brings us to our final calculation: Annualized ROI
- Say you’re offered a job that pays $40 per hour. If you work 40 hours a week, you’ll earn $20,000 per year. If you work 50 hours a week, you’ll earn $25,000.
- Now let’s say you do a job that pays $20 per hour. If you work 40 hours a week, you’ll earn $8,000 per year. If you work 60 hours a week, you’ll earn $12,000.
- Now let’s look at the difference between the two. If you work 40 hours a week at the higher paying job, you’ll earn $15,000 more per year than if you work 40 hours a week at the lower paying job.
An annual salary is the amount of money you earn in a year, usually paid at the end of the year. An hourly wage is the amount of money you earn for an hour of work, paid at the end of the hour.
Converting a salary to an hourly wage can help you better understand how much you’re earning per hour, so you can better plan your finances and see if a new job is worth the pay cut.
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