$12 an Hour Equals How Much a Year

The amount of 12 dollars an hour can bring up a lot of questions. Is it a reasonable pay rate or a bad one?

How much is this if you’re working a typical full-time job? If you want an article that handles all the math for you and explains what you can expect from this amount of pay, read on.

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How Much is 12 an Hour for a 40 Hour Work Week?

A typical 40 hour week is what you’d work for a regular full-time job. So this means that the 12 dollar an hour job is likely your primary source of income.

What sort of money can you expect to earn working 40 hours a week if this is the case?

To get the answer to this, multiply $12 an hour times 40 hours. 12 x 40 = $480. So after working 40 hours, probably about 8 hours per day, you would earn $480 for the week.

How Much is $12 an Hour for a 40 Hour Work Week After Taxes

This question doesn’t have just one answer for every person. Since each individual’s tax situation is different, how much you earn after taxes depends on that.

Take a look at your tax bracket and the percentage you will pay to learn more about this. You’ll need to speak to a CPA or tax specialist for individual tax advice because so many factors go into calculating your taxes.

How Much Does $12 an Hour Equal Monthly?

When deciding about your hourly pay and what you’ll accept, you want to know the weekly and monthly income. This is important because it’s how much money you’ll bring in per month that you can use for expenses, savings, and other things.

To determine how much 12 dollars an hour is per month, multiply $12 x 40(hours) x 52(weeks). Then divide that number by 12.

You’ll come up with $2080. This is how much you’d make in a month working 40 hours a week at a rate of $12 per hour.

What Salary Equals $12 an Hour?

Maybe the job you work does not pay by the hour. If you’re working on a salary, how much does $12 an hour amount to per year?

It comes out to $24,960 per year. Just a little bit shy of the 25k per year salary. 

When you’re offered a salary position, it’s a good idea to break it down by the per hour rate that it would be if you worked a typical 40 hour week. If your salary pay doesn’t require a 40 hour week, you can adjust the math accordingly.

If you work a lot more than 40 hours a week, you may start to think about whether you’re making enough money for all the effort you give to your job.

$12 an Hour is How Much a Year? (Before and After Taxes)

Before: Assuming you work a 40 hour work week, 52 weeks a year, the grand total before taxes is $24,960.00. This is the amount of money you’d make annually before any taxes or money is taken out of your paycheck.

After: The amount you’d make with $12 an hour after taxes depends on your individual tax situation so you’ll need to consult with a tax professional. But as an example, if you’re single and this is your only source of income, you may fall into the 12% tax bracket.

This would mean that after federal taxes of $2995.20 (12%), you’d have $21,964.80 left. You’d also need to calculate what you’d owe for state taxes as well.

And again, there are many other tax factors that will affect your take-home pay so this is nowhere near exact.

Is $12 an Hour Good Pay?

While this is slightly subjective based on your situation, overall, $12 an hour is not good pay. In some states, this amount doesn’t even meet minimum wage requirements.

It’s a bit unrealistic to make this amount of money unless you have a side gig or someone else in your household also works a full-time job.

A situation where $12 an hour might be acceptable pay would be if this is a secondary income. Also, if you aren’t as concerned with the pay rate as with the experience doing the job, this rate may be acceptable for a short time.

Can You Live on $12 an Hour?

It’s not very likely that you can live on $12 an hour. Where you’re located can make this possible or not, because of the cost of living.

If you live in a very inexpensive place and have pretty small living expenses, it may be possible. You’d likely need the majority of your monthly needs covered another way, like if you somehow had access to free housing or were able to grow the majority of your food yourself.

Related: How to Live Without Money and Survive

Living on this amount will require you to be very frugal. At this rate, you would probably just be paying your bills and you’d barely have anything left over.

It would be challenging to save for the future and use your money for anything other than a paycheck to paycheck lifestyle with this amount. If you are in a situation where you make $12 an hour, consider looking for a job with better pay, or take on a side hustle.

Questions to Ask Before Accepting this Pay Rate

This pay rate is not great money, so what should you consider before accepting this amount? Here are some questions to ask:

Do you need the experience this job offers?

Ask yourself what you find intriguing about this particular job. Is it in your chosen field, and will it give you the expertise you need to take on a better job in that field in the future? If so, it may be worth it to work for this pay rate for a while although it does seem exploitive.

What stage of life are you in?

This pay rate may be acceptable if your life stage allows for it. For example, if you are in college, don’t have a family to support, or have multiple roommates that help keep living expenses low, this pay rate might work for a while. On the other hand, if you have others that depend on you, this may not be enough money.

Is there an opportunity for quick advancement and higher pay after a short time?

Is the $12 an hour just an introductory rate that will soon lead to higher income, like a probation period for the first few months of your job? If so, you may be able to make this work temporarily.

Or perhaps you’ve noticed that advancing quickly in this career is possible. These factors may make it possible for you to accept the job.

Is this the only job for my household, or are there other incomes?

If other people rely on you for rent payments, food, and other bills, this job may not pay enough. But if others in your household work and contribute to the finances, you may be able to accept this job.

Can I ask for more money?

It never hurts to ask. Perhaps the $12 an hour rate was thrown around during the interview, but maybe it isn’t set in stone. Ask about a higher wage, and see what is offered.

What are my other options?

Last, consider what your other options are. Do you have the chance to work a different job with higher pay? Find out what else you can do and what is possible before accepting the pay rate.

Techniques to Get Paid More

$12 an hour is sometimes acceptable for a first job, but that doesn’t mean you shouldn’t reach for more. Instead of accepting the first number offered, check out these techniques to get paid more.

  • Work more hours. One way to make more money is to work more. If your job allows for it, consider working more hours. Plus, you may get paid more for overtime.
  • Show your value. Let your manager and co-workers see your value by being helpful, on time, respectful, and diligent in your work. Make it your mission to be inquisitive, find answers for people, and show that you are a great part of the team. It’s helpful for networking, potentially getting a different job, and it’s just good business.
  • Ask. If you prefer a direct route, you can ask if more money is an option. Some people are afraid to do this because they don’t want to appear ungrateful or potentially lose a job. If you ask respectfully, you are unlikely to lose your job, and there’s nothing wrong with getting paid what you believe you’re worth. So feel free to question in a professional way.
  • Negotiate. When the rate is initially offered, don’t accept immediately. Think about it, and try to find a way to negotiate. For example, ask about benefits and insurance. Outline all the work you’d be responsible for, and then give your employer a range of money you are comfortable with. See if you can get a higher pay rate per hour that way.

$12 an Hour is $24,960 Before Taxes

If you make 12 dollars an hour and work a typical 40 hour work week, this means you’ll earn $24,960 per year before taxes are taken out. While this isn’t considered good money, it does depend on your circumstances.

It may be possible to live on a job that makes $12 an hour but only if you are incredibly frugal and your expenses are quite low.

If you work a job that makes this amount of money, it may be time to ask for a pay raise, negotiate, or look for other opportunities. Depending on your situation, working for $12 an hour may be something you choose to do for a limited amount of time, to learn a skill, or until you can advance in your career.

Want somewhere to track your money across all accounts?  Grab this free financial dashboard to track your savings, retirement, net worth, and more!

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Steffa Mantilla

Certified Financial Education Instructor

Steffa is a Certified Financial Education Instructor (CFEI) and the founder behind Money Tamer. Her 12-year background in operant conditioning and positive behavioral change training is used to help people find effective motivators to change their harmful money behaviors. Steffa explains the reasons “why” behind people’s financial behaviors and how to successfully change them. After paying off over $80,000 in debt through budgeting, she now teaches families how to get their own finances in order. You can learn more about her here.

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