How much does $25 an hour equate to per year?

According to the U.S. Department of Labor, the average annual wage for a fast food worker is $19,920 annually or just over $10 an hour. But you already knew that. So let’s talk about what that $10 an hour gets you in the real world.

Assuming a standard 40-hour workweek (which isn’t always the case), that equates to just over $250 per week before taxes or $20,800 annually if you only work for them for one year.

If you’re lucky enough to get hired at a fast food restaurant with benefits and vacation time, those figures might be even lower than you think. According to Glassdoor, the average fast food employee makes around $11 an hour once all benefits like healthcare and vacation time are included in their compensation package.

So what does $25 an hour get you as a fast food worker?

Let’s run the numbers. If you’re lucky enough to get hired at a fast food restaurant with benefits and vacation time, those figures might be even lower than you think. According to Glassdoor, the average fast food employee makes around $11 an hour once all benefits like healthcare and vacation time are included in their compensation package.

Assuming you work 40 hours a week, that equates to $440 per week before taxes or $27,200 annually if you only work for them for one year.

$11 an hour x 40 hours per week = $440 per week or $27,200 annually

Assuming you make $11 an hour, how much more would you earn if you were making $25 an hour? You’d increase your annual income by $21,800 or approximately $40 a day. So, if you’re currently making $11 an hour, you’d have to work just over one day at your current job to make enough money to put $25 in your pocket.

$25 an hour x 40 hours per week = $1000 per week or $50,000 annually

A tank of gas and an oil change

One of the first things people think they’ll do with a raise or promotion is buy a brand new car. It’s the American dream, isn’t it? However, if you’re currently making a median wage of $10 an hour as a fast food worker, one tank of gas and an oil change at Jiffy Lube will cost you $50. That’s more than 10% of your current annual income.

Assuming you’re driving a 15-gallon vehicle and filling it up at $2.50 a gallon, a full tank of gas will cost you $50. If you’re driving a compact car like a Honda Civic, you might get as many as 33 miles per gallon. So, you’ll need to fill your tank up twice a month on average. Two tanks of gas per month will cost you $100 each time. $100 x 2 = $200.

A new car, on the other hand, will run you anywhere from $18,000 for a used car to more than $38,000 for a brand new vehicle. A new car payment for a $25,000 car will cost you about $350 per month on average. If you’re making $10 an hour, that’s more than a quarter of your current annual income.

A month’s worth of groceries for your family

Groceries are a necessity, but they can also be expensive. Depending on where you live, the cost of groceries may vary. But on average, a single family of four is expected to spend around $2,000 on groceries every month. That’s $24,000 every year. At $25 an hour, you’ll have enough money in one week to pay for a year’s worth of groceries for a family of four.

A single person, in comparison, will spend around $3,100 per year on groceries. That’s $33,000 every 10 years.

If you’re currently making $10 an hour, you’ll have to work just over one day at your current job to make enough money to put $25 in your pocket. At $25 an hour, you’ll have enough money in one week to pay for a family of four’s yearly grocery bill. In other words, one day’s work at $25 an hour is the same as a whole year’s worth of work at $10 an hour.

If you work for yourself or are a manager or executive at a company, you can earn up to $100,000 annually. But if you’re just a typical fast food worker earning $10 an hour, you’ll have to work more than 1,300 days or approximately three and a half years to earn that much money.