If you live in the United States or browse social media platforms, you’ll often encounter people referring to “figures” when talking about salaries or money. In this article, we’ll explain how much 5 figures is and talk about the way the term “figure” is used in the context of finances.
How much is 5 figures?
The term 5-figure salary refers to an annual income between $10,000 and $99,999. Referring to salary amounts in terms of “figures” is most common in the United States, although it’s occasionally used in other English-speaking countries as well.
In the United States, people usually refer to annual income when talking about salaries in terms of figures. However, depending on the context of the conversation, they might be referring to weekly or monthly income.
The reason why the range between $10,000 and $99,999 is called “5 figures” is simply because all the numbers in this range consist of five digits. “6 figures” refers to the range between $100,000 and $999,999, “7 figures” refers to the range between $1,000,000 and $9,999,999, and so forth.
The reason why using figures to refer to salaries is so common is because it allows people to communicate roughly how much money they make without getting too specific.
Being too specific about salary is considered impolite and awkward — if you ask someone you don’t know very well about how much they are earning, they are much more likely to respond in terms of figures rather than giving you a specific number.
For example, they could respond that they are earning “high 5 figures” or “low 6 figures”, which would provide enough information about their income range without disclosing the exact amount of money they earn.
Why it’s more common to hear about 6 figures than 5 figures
The term “5-figure salary” is not too common in the context of the United States. More often, you will hear people talking about 6-figure salaries, as the term is more meaningful.
A 6-figure salary means an annual income between $100,000 and $999,999. So, if someone earns a 6-figure salary, they are most likely in a strong financial position, unless they live in a very expensive area. When someone says that they are earning 6 figures, the implication is that they are well off.
Meanwhile, the term “5-figure salary” is not quite as useful. In the United States, the federal minimum wage is set at $7.25 per hour. On a yearly basis, this works out to an annual income of about $15,080.
You would probably agree that a person earning the federal minimum wage is likely in a much worse financial position and has to make more compromises in terms of their lifestyle than someone who is earning $95,000 on an annual basis.
Technically speaking, however, both $15,080 and $95,000 are 5-figure salaries. So, simply saying that someone earns 5 figures doesn’t convey much meaning — it could refer to someone who’s living quite comfortably or someone who’s struggling to pay their bills.
However, this problem can be mitigated by adding some additional information — for example, you could say you’re earning “low 5 figures” or “high 5 figures” depending on where in the 5-figure range your income falls.
FAQs
Now, let’s address some of the most common questions people have about the term “5 figures” and 5-figure salaries.
How much is 5 figures in money?
In terms of money, the term “5 figures” refers to the range between $10,000 and $99,999. This is because the numbers in this range consist of 5 digits.
How much is 5 figures a month?
The monthly income of someone who’s earning a 5-figure salary on an annual basis can vary significantly. If you earn $10,000 per year, that translates to $833 per month. Meanwhile, on the top of the 5-figure range, someone earning a $99,999 annual salary would be earning $8,333 per month.
How much is 5 figures per hour?
If we assume that a year consists of 260 work days and an 8-hour work day, someone earning a $10,000 annual salary would be earning $4.8 per hour. Meanwhile, someone earning a $99,999 annual salary would be earning $48 per hour.
The bottom line
In the United States, you will often hear people refer to salaries in terms of “figures”. This simply refers to the number of digits in the amount of money they earn annually. For example, a 5-figure salary is between $10,000 and $99,999.
If you’d like more about colloquial terms that are commonly used in reference to money, check out our article exploring the term “grand”.
