Have you been offered a job that pays 7 dollars an hour? Now you want to know how much this will be over a year or each month?”
If you earn a wage of $7 an hour you’ll have an income of $14,560 a year. This estimate is based on working full time, 40 hours a week and you will be working 50 weeks a year.
- Making $7 dollars an hour is $14,560 a year
- Making $7 an hour is $1,213.33 a month (on average)
- Making $7 dollars an hour is $280 dollars every week
- Making $7 bucks an hour will be an income of $56 dollars a day
- Summary table for $7 / hour
- Disclaimer for budgeting purposes
- More hourly rate calculations
Earning an hourly wage makes it hard to budget because many expenses, such as rent and utilities come as a monthly bill. Knowing how much is your take-home pay is important. Knowing your monthly income will help you plan how much you can pay monthly in expenses like housing, utilities, or insurance.
Making $7 dollars an hour is $14,560 a year
If your hourly rate is $7 you will have a gross income of $14,560 a year.
This assumes you are working 40 hours/week with no overtime. It further assumes you work 52 weeks/year minus the federal holidays (which are between ten and eleven per year). That means you work ~ 50 weeks/yr.
Typically workers that are paid hourly, do not get paid holidays. If you’ll take two weeks’ unpaid vacation in addition to the holidays, your annual income will reduce to $14,560.
At 40 hours a week, 7 dollars an hour will be $14,560 a year, with only federal holidays off and $14,000 if you take two weeks’ vacation.
For more detailed instructions, visit “How to calculate your annual income from hourly wages.”
How much is 7 dollars after taxes?
But in this world nothing can be said to be certain, except death and taxes— Benjamin Franklin, in a letter to Jean-Baptiste Le Roy, 1789
Of all the income you earn from your labor, you must pay taxes for the government to provide all the services and security it feels are necessary in a modern world. Therefore you can’t budget the entire income as yours to spend on expenses and pleasure.
If you must know, you can read our article about “How much is 14,560 dollars after taxes?“
Making $7 an hour is $1,213.33 a month (on average)
For preparing a budget, you often want to know what monthly income you can expect. For that purpose, you can calculate the monthly income as 1/12th of the annual income. Then 7 dollars an hour will be 1,213.33 dollars a month income before taxes.
A more conservative assumption is that each month has 4 weeks. The 4 weeks / mo assumption is recommended for budgeting purposes because it will underestimate the monthly pay slightly. With that, you will be less likely to overspend your income.
With 4 weeks per month, your $7/hr will amount to $1,120 a month.
Making $7 dollars an hour is $280 dollars every week
Assuming you get paid weekly, then $7/hr will get you a paycheck of $280 dollars each week. That will come to $ if you are paid bi-weekly.
If you are paid bi-weekly, you might also want to budget bi-weekly. In that case, you want to put aside some money for the monthly bills, so you have the cash when they come due.
Making $7 bucks an hour will be an income of $56 dollars a day
Making $7 bucks an hour will put $56 into your pocket at the end of a day. This assumes no taxes are deducted from your pay.
Summary table for $7 / hour
See the table below to calculate how much is 7 / hour is a year, a month, every other week, a week, or a day?
|A wage of $7 / hour|
with a 40 hour workweek
|Amount per period|
|is per day||$56|
|is per week||$280|
|is monthly (average)||$1,213.33|
|is monthly (budgeting)||$1,120|
|is annually (with 2 weeks of unpaid vacation)||$14,000|
Disclaimer for budgeting purposes
For budgeting, you do need to calculate your monthly after-tax income. As many expenses are due every month this is what you need to draw up your budget. If you are paid bi-weekly you will need to put aside half of your budgeted amounts for when the bill comes due.
If you want to increase your budgeting accuracy, you should use your take-home pay as the basis for your budget. Your monthly income after taxes might be further reduced by things like health insurance, 401(k) contributions, or union dues. You must be careful with this because you can only spend the cash you actually take home each month.
More hourly rate calculations
Now that you know how much 6 dollars per hour are a year, maybe you also want to know How much is $8 an hour annually?
If you determined that $7 / hour will not support your lifestyle or satisfy your ambitions, maybe you can land a better job and want to know "Making 10 an hour is how much a year?"
There are times in your career when you’ll have to settle for less pay. If this applies to you, read "Grossing 6 an hour is how much a year?"
Wages differ widely across the US. While urban areas on the coasts pay often handsomely, the cost of living is also high. Sometimes it is better to accept a job with less pay but in an area where housing and energy are more affordable. You can find out more in this article: "Earning 5 dollars an hour is how much a year?"