A **salary of 45,000 dollars a year computes to an hourly wage of $21.63 assuming you work a full-time job with 40 hours per week**. This means that an hourly worker with 24 dollars per hour earns about the same as an employee with an annual salary of 45,000.

## How many hours are there in a year?

In order to convert an annual salary into an hourly wage, you need to know how many hours are typically worked in a year. Among payroll professionals, it is common practice to use 2080 work hours per year to calculate an equivalent salary. This is based on a typical full-time workweek of 40 hours per week and 52 paid weeks per year. Teh math is: 40 * 52 = 2080.

You may ask about holidays and vacations? As far as these estimated calculations are concerned it is assumed that holidays are paid time off and that also the employer grants paid time off for vacation purposes. In this case, all hours are considered paid time.

If you are working for an hourly wage, then you may not have the benefits of paid time off. However, you may have the opportunity for overtime pay or other additional benefits that make up for the difference.

## $45,000 a Year is How Much After Taxes?

As 45,000 is a nice round number, I presume this represents a gross salary. I’d like to urge some caution to think of this as money you can spend. Most people asking this question will have to find out how much is an income of $45,000 after taxes, before using this data to draw up a budget or calculate how much house they can afford.

Whether the 45 thousand dollars are before or after taxes makes no difference to the computation of an hourly rate. If one is before taxes, then the other is too, and vice versa.

## What is my take-home pay with 45k a year?

An annual income is too big to make practical lifestyle decisions because the regular expenses such as rent and utilities or credit payments are levied monthly. Therefore, you need to break down the salary into a monthly paycheck or take-home pay.

## A 45,000 dollar salary is how much a month?

45,000 a year computes to $3,750.00 a month. The conversion from yearly to monthly income is rather simple, dividing the 45,000 by 12, which equals 3,750.00.

If $3,750.00 is your monthly take-home pay depends on whether the 45k is your income before or after taxes. If this is your income after taxes you can expect $4,166.67 to be paid every month into your bank account. If $45,000 is your gross annual income, you need to first determine your after-tax income and start over with the conversion to a monthly income. For US employers it is customary to deduct other expenses, such as health care premiums or 401(k) contributions, before depositing the money into your bank account.

## How much is 45,000 salary if I get paid bi-weekly?

If your employer pays you every fortnight, then you can expect a bi-weekly payout of $1,730.77. This is calculated based on the 26 bi-weekly periods in a year (52 weeks / 2 = 26)

You will only be able to spend this amount on expenses if the 45,000 annual is income after taxes. If 45,000 a year is your pre-tax income, then you need to first determine your income after taxes.

## How much is 45,000 a year in a week?

To calculate a weekly income you need to divide the 45 thousand dollars by the 52 weeks in a year. 45,000 divided by 52 = 865.38.

At a $45,000 annual income level, you will earn $865.38 every week.

## 45,000 a year is how much per day?

Earning $45,000 will compute to a daily rate of $173.08, given a five day workweek.

You can break down your annual salary into a daily rate by dividing through the 52 * 5 days = 210 days in a year. These are the days a human resource professional assumes you are paid. Usually, you are granted paid holidays and paid time off. That means your actual days at work may be less.

Alternatively, you can construct your daily pay from the hourly rate of $21.63, calculated above. Assuming you work 8 hours a day to have a 40h workweek, you will be paid 173.08 dollars for each day.

### Gainfully employed vs self-employed – a warning

All calculations on this page assume that you are gainfully employed with a company. If you are looking for these calculations as a basis to estimate your income from self-employment, you need to take many more factors into account, than just taxes.

Someone self-employed has to pay different, think higher, amounts on taxes than a wage earner or a salaried employee. Further, the self-employed person may have additional expenses for tools, equipment, and needed services. Furthermore, a self-employed person will have higher health insurance costs and additional business insurance expenses.

The main point to understand is that you can not set your contract hourly rate at the same level as a wage earner or you will have to work many more hours to make up for those costs.

## 3 revealing calculations you should do with your net hourly rate

### Calculate “How long are you working for your (bad) habits?”

Do you smoke? It’s one of those habits that can be very heavy on your wallet. I don’t want to pick on smokers, but it makes a good example. Please substitute your personal habits (or vices) that cost you quite a bit.

Let’s assume you smoke 1 pack of cigarettes / day and live in New York. The price for a pack of cigarettes in New York is $11.96. That means you’ll spend 7 * $11.96 = $83.72 on cigarettes every week.

If you work 40 hours a week and your net hourly wage is $21.63 you need to work about 3.9 hours a week to fund your smoking habit ( $83.72 / = $3.87). That is 0.77 hours (or 46.5 minutes) every workday, laboring for your smoking habit.

I can’t speak for you, but staying the last 46.5 of a tiring workday just to blow it up in smoke (pun intended) is not an appealing proposition to me.

Of course, this is not only about smoking, maybe your costly habit is going out to eat, or treating your friends at the bar every single time. Cutting back on those vices can save you a lot of money and align your family budget with your financial goals.

### Compute the cost of borrowing in hours worked

Another revealing calculation is to compute the hours you work just for interest payments on loans.

To calculate how long you work for borrowing money, add up all interest and late fees you pay on any car, student, consumer, or credit card loan. If you have a mortgage for your home, make a separate calculation for it.

For example, if you pay monthly $230 interest for a car loan and $60 on credit card interest, that adds up to $290 / month. This accumulates to 12 * 290 = 3480 dollars a year on interest payments. This means you work $3480 / $ = 160.85 hours a year just for the bank. This is 4.0 weeks working for the bank. Without borrowing money, you could take a nice break from work or save this money for retirement.

Let’s assume you finance your car and other purchases at that level forever. This means every 13.0 years, you work one full year for all this borrowing. Or after 40 years of working you could retire 3.1 years earlier if you would save first and then buy the things you need.

Making this calculation will encourage you to be more disciplined with your money. You can strive to pay the credit card bill in full every month and save money before buying the car.

### How long do you work for convenience (the cafe latte effect)?

Let’s calculate how much time you work for convenience habits. Let’s assume you don’t grab breakfast at home. Instead, on your way to the office, you go to Starbucks and grab a caffe latte grande (medium) for $3.65 and a Spinach, Feta & Egg White Wrap for $3.75. That means you spend $7.40 on your breakfast and stand 10 minutes in line to get it every weekday morning.

With a net hourly rate of $21.63, you have to work 20.6 minutes to earn the money you spend on your breakfast. Let’s assume you can make the coffee at home for $1 and the wrap for $2, then you will spend only $3 on your breakfast. That is probably a high estimate. The time you need to make the sandwich is compensated by not standing in line to order the sandwich and pay for it. Now you might argue that the sandwich you make is not warm, but what keeps you from heating up the ingredients in the microwave at home?

A homemade sandwich consumes 8.4 minutes of your work time, which is 12.2 minutes less than the convenience of the Starbucks breakfast. With a net income of 45 k, you want to consider if it is worth it to spend every day 12.2 minutes at your job, just to pay for the breakfast.

Have a look at other conveniences, such as take-out lunch or dinner, delivery services for take-out meals, or a quick bottle of water on the go. If you organize yourself just a little, you can work much more towards financial independence instead of a convenience-driven lifestyle keeping you poor and dependent on your job.

## Quick memorization table for income rates

Here is a quick table of how much you earn in net income for each unit of time. You can memorize this table and use it to quickly calculate the value of the purchase in work time.

Monthly | $3,750.00 |

Bi-weekly | $1,730.77 |

Weekly | $865.38 |

Daily | $173.08 |

Hourly | $21.63 |

Per Minute | $0.36 |

### Do I want to work that much for this (in the job I hate)?

Ask yourself for every purchase: “Is this thing or service I’m about to buy worth working N minutes or hours or days?”. The answer to this question will help you to curb overspending.

If you hate your job, it is a really good idea to be very frugal with your expenses. Because all the money you spend will limit your freedom to change jobs, for example by moving to a different place.

If you love your job, you are still limited by the hours you can work and get paid for. Measuring the price of the next shiny thing or the cool service to have as the time you work for it, helps you to set priorities and live below your means. And living below your means grows your financial independence.

## Summary

While it seems an academic exercise to calculate how much your 45k salary is an hour, it can reveal some good insights to your lifestyle and spending habits.

**Your $45,000 annual salary is equivalent to someone earning $21.63 hourly wage, if you (both) are working 40 hours a week.**

Furthermore, if the 45,000 is your net income it is worthwhile to calculate your net hourly income or net income per minute for that matter. This figure helpa you to assess the price of any good or service not in an abstract and normalized value of the currency, but in your personal realm of how much time you need to work to afford a gadget or a service.

Knowing and understanding the time you need to work for purchases will prevent overspending and help you to budget your money (and work time) wisely.