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$24 An Hour Is How Much A Year?

$24 An Hour Is How Much A Year?

Many people are curious about how much they will make in a year based on their hourly pay rate. They know that taxes and expenses eat up their salaries before they budget for their money. So, if you are among those asking, “$24 an hour is how much a year?”, we have the answer for you.

Key takeaways

  • $24 an hour equals $49,920 a year if you work 40 hours a week.
  • Additionally, $24 an hour pay equals $960 weekly and $3840 monthly.
  • These calculations are done pre-tax, meaning the net income will be much lower when you factor in the tax and other deductions.

Understanding the basic calculations

In employment and financial planning, you must understand the annual equivalent of an hourly wage to help you make informed decisions. Here, you will learn how to do the basic calculations that answer the question: “$24 an hour is how much a year?”

$24 An Hour Is How Much A Year?

The conversion from an hourly wage to an annual salary involves a simple mathematical formula discussed below.

Annual pay = hourly wage x total number of hours worked in a year.

However, you need to understand how working hours are calculated. You also need to understand the basic terms involved in these computations. Here is a breakdown of the basic terms that you need to know.

$24 An Hour Is How Much A Year?

Breaking down the basic terms

Hourly wage: This is the amount you earn per hour of work. In this case, we are setting it at $24. However, this does not apply to everyone because the legal minimum wage in the United States is $7.25/hr, according to the federal government’s Department of Labor.

Daily working hours: Here, we assume that a person works for 8 hours a day. Again, this is just a moderate number because some work for longer hours.

Hours per week: Here, we assume a standard full-time workweek of 40 hours. Some work for more than 40 hours. However, 40 hours is the standard number of weekly work hours.

Weeks per year: Here, we assume a typical work year of 52 weeks in a normal year.

Calculating the annual pay

Now that you understand the numbers we will use in these computations let’s plug in the numbers for our scenario.

For someone earning $24 an hour, the annual pay will be calculated as follows.

Annual pay = $24 x the total number of hours worked in a year

                    = $24 x (daily hours x 40 hours a week x 52 weeks in a year)

First, calculate how much you will earn weekly on a $ 24-hourly pay basis.

Weekly pay = $24 x 40 hours in a week = $960

Now, let us calculate the annual pay.

Annual pay = $24 x $960 x 52 weeks = $49,920

What a $24 hourly rate means

The hourly rate is the pay per hour. As you can see, to calculate how much you will make in a year with an hourly rate of $24, you need to know how many hours you will be working each week. You also need to know how many weeks you will work in a year.

In our case, we assumed a standard workweek of 40 hours and a typical work year of 52 weeks. Based on these numbers, we saw that you would make $49,920 annually if you worked full-time at $24 per hour.

However, your annual income will be different if you work part-time or if your workweek is longer or shorter than 40 hours. For example, if you work just 20 hours per week, your annual income at $24 per hour would be $24,960. Conversely, if you work 60 hours per week, your annual income at $24 per hour would be $74,880.

Here is a summary of what a $ 24-an-hour rate will look like on your paycheck.

Pay frequencyComputationsPaycheck
Annual$24 x 40 weekly hours x 52 weeks$49,920
Monthly$24 x 40 weekly hours x 4 weeks$3840
Weekly$24 x 40 hours a week$960
Daily$24 x 8 working hours$192

Important considerations

It is important to note that your actual take-home pay will be less than your gross income. This is because taxes and other deductions, such as health insurance or retirement contributions, will be removed from your paycheck before receiving it.

The amount of taxes you pay will depend on your tax bracket, which is based on your total income for the year. You can use an online paycheck calculator to get a better idea of how much you will take home each pay period.

These online tools will give you an estimate of your net pay or the amount you will receive after taxes and deductions. Remember that this is just an estimate, and your actual take-home pay may be slightly different.

Calculating $24 an hour per year after tax

You know you do not keep all the $49,920 you earn annually because you must pay tax. $49,920 is the pre-tax gross income, and you take home what is left after tax.

You will pay taxes depending on the federal income tax brackets you fall in. Understanding the tax you will pay is crucial to answering the question: $24 an hour is how much a year.

Federal income tax brackets

The US federal government has set up 7 income tax brackets for taxpayers depending on their earnings. If you earn $49,920 annually, you fall in the third tax bracket if you are single or married but filing separately.

For those married and filing jointly, or are the head of the households, an annual pay of $49,920 puts them in the second tax bracket.

For the sake of these calculations, we will use the third tax bracket for those who are single or married but are filing separately. All taxpayers in this bracket pay 22% of their income as tax.

Let’s delve into the federal tax computations using the 22% tax rate.

First, you will pay 10% of your taxable income ($11,000) for the first tax bracket ($0-$11,000).

Then, you will pay 12% of your taxable income ($44,725-$11,000= $33,725) for the second tax bracket.  

Finally, you will pay 22% of your remaining taxable income ($49,920-$44,725 =$5,195) for the third tax bracket.

These calculations yield the following numbers.

1st tax bracket = $1,100

2nd tax bracket =$4,047

3rd tax bracket = $1,142.9

Total income tax = $6,289.90

Therefore, the total federal income tax for someone earning $24 an hour is $6,289.90.

What is $24 an hour pay after tax?

Now, you can deduct the tax from your $ 24-an-hour pay to get the amount you will receive. You will get $49,920 – $6,289.90 = $43,630.10. This number is called the after-tax income or net income.

Remember that you can pay less tax because the government gives tax benefits and reliefs to taxpayers. Therefore, the amount of tax you pay will vary depending on the individual taxpayer’s situation.

State income tax

There are also states that charge tax on incomes. Therefore, if you live in a state that taxes your income, you will take home less than $43,630.10. Luckily, some states do not charge income tax. Here is a list of states that do not charge income tax.

  • Wyoming
  • Texas
  • Washington
  • South Dakota
  • Alaska
  • Florida
  • Nevada
  • New Hampshire
  • Tennessee

Is $24 an hour good pay?

Yes, $24 an hour is good pay in most states. It is way above the minimum wage limit of 7.5/hr in the United States. You can live comfortably in most states with a $ 24-an-hour pay.

However, when considering a job offer with an hourly rate of $24, it is important also to consider other factors, such as benefits, job security, and potential for advancement. A job with a higher hourly rate may not always be the best option if it does not offer other benefits or opportunities for growth.

Additionally, it is important to consider the cost of living in your area. A salary of $49,920 may be enough to live comfortably in some parts of the country but not in other areas with a higher cost of living.

It is important to research the average cost of housing, transportation, and other expenses in your area to determine if a salary of $24 per hour will be sufficient.  

How to create a monthly budget on $ 24-an-hour income

Managing your finances can be daunting, especially if you are on a tight budget. However, with careful planning and organization, you can create a monthly budget to help you stay on track and achieve your financial goals. Here is a guide on how to create a monthly budget with a $24/hr income.

1. Determine your monthly income

The first step in creating a budget is to determine your monthly income. If you earn $24/hr, your monthly income will be $3,840 ($24 x 160 hours). However, if your income varies from month to month, you may want to use an average of your income over the past few months to determine your monthly income.

2. List your monthly expenses

The next step is to list all your monthly expenses. They include your rent, mortgage, utilities, transportation, groceries, insurance, and any other bills or expenses you have. Be sure to include all your expenses, no matter how small they may seem.

3. Categorize your expenses

Once you have listed all your expenses, categorize them into fixed and variable expenses. Fixed expenses remain the same from month to month. They include rent, mortgage, car payments, and insurance. Variable expenses fluctuate from month to month, and they include groceries, entertainment, and clothing.

4. Create a budget spreadsheet

Now that you have determined your income and expenses, it is time to create a budget spreadsheet. You can use a spreadsheet program like Microsoft Excel or Google Sheets to create your budget. List your income at the top of the spreadsheet and your expenses below it, categorizing them as fixed or variable expenses. Deduct your expenses from your income to determine your disposable income.

5. Adjust your expenses

If your expenses exceed your income, you will need to adjust your expenses to fit your budget. Look for areas where you can cut back, such as dining out, entertainment, or clothing. Consider negotiating with your service providers for a lower rate or switching to a cheaper plan. Be creative and think outside the box to reduce your expenses.

6. Track your spending

Creating a budget is only half the battle because you must track your spending to ensure you stay within your budget. Therefore, keep track of your expenses on a daily or weekly basis and compare your actual spending to your budget. It will help you identify areas where you are overspending and adjust accordingly.

The bottom line

If you were asking, “$24 an hour is how much a year?” your question has been answered. Understanding the annual equivalent of an hourly wage provides clarity when evaluating job offers, planning budgets, and setting financial goals.

For those earning $24 an hour, the annual salary would be approximately $49,920, assuming standard full-time employment. However, it’s essential to consider various factors that may affect your overall compensation and financial well-being.