How the number is calculated
$16 × 40 hours × 52 weeks = $33,280
A full-time US job is usually counted as 40 hours a week and 52 weeks a year, or 2,080 paid hours. Multiplying $16 by 2,080 gives the gross yearly pay. If your two weeks of vacation are unpaid, use 50 weeks instead: $32,000 a year.
$16 an hour at different schedules
| Hours a week | Weekly | Monthly | Yearly |
|---|---|---|---|
| 20 hours | $320.00 | $1,386.67 | $16,640 |
| 25 hours | $400.00 | $1,733.33 | $20,800 |
| 30 hours | $480.00 | $2,080.00 | $24,960 |
| 32 hours | $512.00 | $2,218.67 | $26,624 |
| 35 hours | $560.00 | $2,426.67 | $29,120 |
| 37.5 hours | $600.00 | $2,600.00 | $31,200 |
| 40 hours | $640.00 | $2,773.33 | $33,280 |
| 45 hours | $720.00 | $3,120.00 | $37,440 |
| 50 hours | $800.00 | $3,466.67 | $41,600 |
Overtime at $16 an hour
Under the federal Fair Labor Standards Act, non-exempt employees earn at least 1.5 times their regular rate for hours over 40 in a workweek. At $16 an hour, that is $24.00 per overtime hour. Five overtime hours a week add $120.00 a week, or about $6,240 a year.
A 50/30/20 budget on $16 an hour
The 50/30/20 rule splits take-home pay into needs, wants and savings. Taxes depend on your state, filing status and benefits, so the split below uses gross pay of $2,773 a month as a starting point. Use the 50/30/20 budget calculator with your actual take-home pay.
| Category | Share | Monthly (gross) |
|---|---|---|
| Needs | 50% | $1,387 |
| Wants | 30% | $832 |
| Savings and debt | 20% | $555 |
$16 an hour is 2.2 times the federal minimum wage of $7.25. Many states and cities set a higher minimum, so check your state labor department for the local rate.
Want a different rate or schedule? Try the salary to hourly calculator.