Earning an hourly wage makes it hard to budget unless you annualize it or at least look at it on a monthly basis. Knowing how much you bring in each month is important; otherwise, how do you set up a budget? You need to know how much you can commit to expenses like housing, utilities, insurance, food, and savings.
So, $40 an hour is how much a year? If you make $40 an hour, check out our guide to make the most of it. Continue reading to also see the equivalent annual salary based on how many hours you work.
$40 Dollars an Hour Is How Much a Year?
You may find yourself asking how much is $40 an hour annually? If you work 52 weeks per year (or get two weeks of paid vacation), you will make around $83,200 assuming you work 40-hour weeks with no overtime pay.
If you don’t get paid time off and you take it, you’ll work around 2,000 hours per year, bringing your salary down to $80,000 even. But if we’re honest, there are 260 weekdays in 2023. If you worked every weekday, you’d work 2,080 hours and make $83,200 annually.
Let’s convert your hours worked to salary based measurements:
Check out our free Hourly to Salary Calculator to further dive into your hourly pay.
For both salaried and hourly employees, the fair labor standards act, and the department of labor standards provides you with a level of protection. Federal minimum wage (minimum rate of pay for a given nonexempt job role) and for overtime hours on time-spent if an employee meets compensatory requirements are just two examples of how labor laws help you.
How Much is $40 an Hour per Month?
It helps to know how much $40 an hour earns you per month. You’ll have a better idea of your monthly budget and what you can spend. Using the full 365 days in 2023, the average hourly wage earner works 175 hours per month.
At $40 an hour, you’d make $7,000 per month, assuming you work all the weekdays in the month. If you take time off unpaid, the amount drops.
How Much is $40 an Hour per Week?
Do you prefer to budget weekly? Many people do; it’s easier to break it down than look at a month at a time and get overwhelmed.
$40 an hour per week means $40 an hour for 40 hours or $1600. If you work overtime or take time off, it will increase or decrease your weekly income accordingly.
How Much is $40 an Hour per Day?
Want to look at it from a daily standpoint? Maybe you want to give yourself a little incentive to keep going – and what works better than cold hard cash, right?
If you work full-time, that’s 8 hours a day on average. At $40 an hour, you’d gain $320 a day.
$40 An Hour Breakdown (Comparison Table)
Here’s a quick breakdown of what $40 an hour looks like for the average person.
Tools You Need to Live on $40 an Hour
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5 Jobs That Earn $40 an Hour
Below are five job ideas that pay 40 dollars an hour.
If you love numbers and a good algebraic equation, consider becoming a mathematician.
Most jobs for mathematicians will require a master’s degree or above, although it could be possible to find entry-level jobs that only require a bachelor’s degree.
Mathematicians work with formulas and data to solve problems across multiple industries.
Mathematicians earn an average hourly rate of $46.29 per hour or an annual income of $96,280.
Becoming a veterinarian is a great option for those who love animals. The education requirements for a veterinarian are to complete a doctorate of veterinary medicine and state licensure.
Veterinarians care of the health of animals and work to diagnose and treat injuries and diseases. They also work to advocate for animals.
Veterinarians can expect an average hourly rate of $48.26 or a yearly salary of $100,370 a year
Engineers can be a broad group and will differ depending on niches.
At a minimum, engineers will need a bachelor’s degree. However, depending on the specialization of the engineering niche, a higher degree may be necessary.
Engineers create and maintain various structures and systems to keep a company moving. Their job is to innovate.
An electrical engineer can expect an hourly rate of $48.92 or an annual salary of $101,780.
4. Computer Programmer
Typically, a computer programmer will need a bachelor’s degree, although some employers may be willing to hire with an associate’s degree or based on skills alone.
Computer programmers write and test code and scripts for programs and applications used by computers to function properly.
The average hourly rate for a computer programmer is $44.71, or $93,000 a year.
Most psychologists will need a doctorate to practice, although in some cases, a master’s degree may be acceptable.
Psychologists provide assessments and offer a diagnosis for various mental disorders. They also help treat mental, behavioral, and developmental disorders. Psychologists will also study different patterns and social situations in their clients.
The average hourly rate of a psychologist is $38.96 an hour or $81,040 a year.
Can You Make $40 per Hour Without a Degree?
Yes, making $40 an hour is possible without a degree. Many fields provide on-the-job training, like plumbers, electrical linemen, and more, that can reach the pay of $40 an hour. It is also possible to teach yourself programming and web design skills or become your own boss and set your own rate. There are many apps out there that allow you to market your services and set your own hourly rate.
What’s the Total Number of Working Days in 2023?
The total number of working days in 2023 is 260. There are 365 total days minus 104 weekend days (52×2), leaving 260 work days.
How Do You Calculate Hourly Rate From Annual Salary?
To calculate your hourly rate from your annual salary, you need to divide your salary by hours worked during the year. Most people work 40 hours a week, times 52 weeks, giving you 2,080 hours per year. Even if your company gives you paid vacation (typically 2 weeks) the hours worked number would stay the same.
If your annual salary is 90,000, you would divide it by 2,080 hours to get an hourly rate of $43.27.
What Is the Median Hourly Wage?
According to the bls.gov website, the median hourly wage is $22.00 an hour, or $880 at 40 hours per week.
Is $40 an Hour Good Pay?
You can make $40 an hour work if you’re responsible with your finances. If you accumulate a lot of debt, even $40 an hour may not be enough to cover your expenses. Make sure you create a budget and stay intentional with your spending and saving. If you work hard to reach your goals, you’ll achieve financial freedom in no time!
Financial independence has more to do with how you manage your money than how much money you make. Check out our Manage Money category for effective strategies to manage your money!
Samantha Hawrylack is a personal finance expert and full-time entrepreneur with a passion for writing and SEO. She holds a Bachelor’s in Finance and Master’s in Business Administration and previously worked for Vanguard, where she held Series 7 and 63 licenses. Her work has been featured in publications like Grow, MSN, CNBC, Ladders, Rocket Mortgage, Quicken Loans, Clever Girl Finance, Credit Donkey, Crediful, Investing Answers, Well Kept Wallet, AllCards, Mama and Money, and Concreit, among others. She writes in personal finance, real estate, credit, entrepreneurship, credit card, student loan, mortgage, personal loan, insurance, debt management, business, productivity, and career niches.