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$13 an Hour is How Much a Year?

13 an hour is how much a year

Has your boss just offered you a promotion? Before you decide to accept, you may want to pause and reflect for a moment. 

It’s worth considering if the hourly rate is as good as it seems at first glance. The best way to determine if you’re getting a good deal is by calculating the annual salary. You can then compare the rate to salaries offered by other companies for similar work. 

So, let’s find out, ‘$13 an hour is how much a year?’ 

Working Out An Annual Salary

To work out how much you would earn annually, you have to do a quick calculation. Most people work forty hours a week on average, and there are 52 weeks in a year. This means you would work a total of 2,080 hours if you work full-time.

Therefore, the total annual salary of $13 an hour is likely to be $27,040. However, there are certain factors that you need to take into account. For example, your annual salary may be reduced if you take time off work or work less at some point. 

Working Out Annual Salary

The amount after taxes

Another important factor when working out your annual salary is taxes. Most people in the United States pay between 25% and 30% of their salary in taxes. This is a considerable amount, especially when your salary is already fairly low. After taxes, your annual salary is likely to be around $20,200. 

Different Salary Breakdowns

The Monthly Salary

If you have to pay rent each month, it’s a good idea to calculate your monthly salary. This helps to make sure you have enough money each month to pay rent, bills, and other essential costs. The standard advice is that it’s best to pay no more than 30% of your paycheck for rent.

If you work full-time, you will work at least forty hours a week. This means that you will work 160 hours each month. Therefore, the monthly salary would be $2,080, or $1,560 after taxes. The good news is that you can make a little extra money by working overtime. The rate for overtime pay is usually time and a half. This means that you could earn $19.50 for each overtime hour you complete per month. 

The Biweekly Salary

Many companies give employees a paycheck every two weeks. It’s a good idea to work out how much that paycheck will be in advance. This will help you determine if your salary gives you enough to live on. You can expect your paycheck to be a little over $1,000. This assumes that you work forty hours a week. If you do overtime, you will get more, while taking time off can eat into this amount.

Of course, you will also need to pay tax on this amount before you can start spending it. If you pay around 25% of your salary in taxes, you’ll be left with $780. 

The Weekly Salary

Once you’ve worked out the biweekly salary, calculating the weekly wage should be fairly simple. You basically divide your biweekly salary in half, which gives you a weekly income of $520. However, this figure is reduced to $390 per week when you take taxes into account. 

The Daily Salary

If you have trouble budgeting, working out how much you earn each day can help. Most people work eight hours a day, so you simply need to multiply $13 by eight. This gives you a figure of $104 per day or $78 per day after taxes. 

How To Make Your Money Work For You?

Although it may not look like much on the face of things, $13 per hour is a pretty good salary. Even after taxes, you stand to earn more than a lot of people in the United States. This means you are likely to have little disposable income to work with.

It’s never too early to start planning for the future. Here are a couple of tools that make it easy to manage your finances once you secure a higher salary.

How To Make Your Money Work For You

CIT Bank 

Setting up online banking makes it much easier to keep track of your finances. CIT Bank is an FDIC-insured bank that operates solely online. This eliminates the need to go into a branch to arrange different services and do your banking.

Setting up an account with CIT Bank will save you a lot of time and money in the long run. The company doesn’t charge monthly fees for saving and checking accounts. You can also make your money work for you by signing up for a high-yield savings account. 


This company offers accounting software that helps make managing your finances easy. This eliminates the need to hire a professional accountant. The software offered by FreshBooks is straightforward to use.

One of the great things about FreshBooks is that it is designed for beginners. The software comes with a free trial to help you get started. There are also tips and tricks to help you get into accounting and make the most of the software. 

How To Create A Budget?

No matter how much money you make, it’s easy to overspend if you’re not careful. Without a plan in place, you could end up getting into debt. Therefore, it is important to work out a budget that you can stick to. 

A good budget needs to include all the different elements that you spend money on. You need to allocate a percentage of your monthly salary to each of these. Let’s take a look at a sample budget that is tailored to your monthly income


This is one of the most important parts of your budget. You should aim to set aside around 30% for housing, which comes to roughly $468. If you are renting and pay less than this, you can save the rest for your own place. 

Saving and investing

It’s always a good idea to set aside money for the future. Ideally, you should budget 15%, which comes to $234 per month. You can also make your money work for you by investing a portion of this money. 

Saving and investing


Even if health insurance is covered by the company you work for, you may have to pay premiums. Consider setting aside 15% of your monthly paycheck, which is $234. 


This is one area where it’s easy to overspend if you’re not careful. It’s best to set aside 10% of your monthly income for food, which is around $156. If you tend to eat out at fancy restaurants regularly, your monthly food budget may need to be much higher. 


This element includes the cost of commuting to and from work and running your vehicle. You need to take into account the amount you spend on gas and set aside extra for vehicle maintenance. It’s a good idea to allow 10% of your monthly paycheck for transportation, which is $156. 

Entertainment and recreation

Everyone needs to let off steam every once in a while, and this is an important section. Even if you’re not a huge party person, you can save this money for a vacation and other recreational activities. It’s a good idea to allow 10% of your budget for entertainment and recreation, which is $156. 

Personal expenses

This part of your budget is designed to cover miscellaneous expenses. No matter how carefully you budget, there are sure to be things you forget to include. This could be treats, clothing, or anything else you need each month. Allowing 5% for personal expenses is reasonable, which comes to $78 per month.


This section covers bills like gas, electricity, and phone bills. It’s important to calculate how much you spend on bills and see if they can be reduced in some way. Ideally, you should aim to spend just 5% of your monthly salary on utilities, which comes to $78.

Read more: $15 An Hour Is How Much A Year?

Getting The Salary You Deserve!

Whether you’re on the hunt for a new job or feel you’re worth more in your current one, we’ve got you covered! So, let’s first check out the best Flexible Jobs That Let You Set Your Own Hours and What Are Your Salary Expectations, followed by How To Answer Desired Salary, and most importantly, How To Counteroffer Your Salary After A Job Offer.

It’s always essential to understand your pay. For that, we’ve put together a few guides, such as the difference between Salary vs Hourly PayPart Time And Full Time HoursGross Pay vs Net Pay, or How Do I Convert Salary To Hourly To Calculate A Part Time Rate in 2023.

If you’re interested in hourly and yearly pay, then take a look at 60k A Year Is How Much An Hour, for the high earners, $47000 a Year is How Much An Hour or $36,000 a Year is How Much An Hour, along with $30,000 a Year is How Much An Hour, and finally 18 Dollars An Hour is How Much A Year?

Final Thoughts

The annual salary for a wage of $13 per hour is a little over $27,000 per year. However, it’s important to understand that this figure is before taxes and other deductions. Once this is taken into account, your annual salary would be reduced to just over $20,200 annually.

Your hourly rate would only be $9.75 after you deduct tax contributions. It’s essential to work out if this rate will give you enough to live on. If not, you may need to look for another job or learn how to live on a tighter budget.

All the very best in your budgeting!

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