It’s common to hear the term “6 figures” when people are talking about salaries or finance, especially in the United States. In this article, we’ll explain how much 6 figures is and how the term “figures” is used in the context of money.
How much is 6 figures?
The term 6 figure salary refers to an annual income between $100,000 and $999,999. This term is most commonly used in the United States, although you’ll occasionally also hear it in other English-speaking countries.
A 6 figure salary is considered a good salary practically everywhere in the United States. Of course, there is also quite a bit of variation within the 6 figure range itself — for example, someone making $850,000 per year can afford a much more expensive lifestyle than someone earning $110,000 per year, even though they both technically earn 6 figures.
The reason why we use the term “6 figures” to refer to the range between $100,000 and $999,999 is very simple — all the numbers in this range consist of six digits. “7 figures” refers to the range between $1,000,000 and $9,999,999, “8 figures” refers to the range between $10,000,000 and $99,999,999, and so on.
| 5 figures | $10,000 – $99,999 |
|---|---|
| 6 figures | $100,000 – $999,999 |
| 7 figures | $1,000,000 – $9,999,999 |
| 8 figures | $10,000,000 – $99,999,999 |
| 9 figures | $100,000,000 – $999,999,999 |
People often use general numbers when talking about salaries because it lets them share an idea of their income without giving exact details.
Being too specific about how much money someone makes can create an awkward situation, so when you ask, they might give a range like “high 5 figures” or “low 6 figures” instead of the exact amount they earn. In this way, they share some information about their income without getting into specific numbers.
FAQs
Now, let’s address some of the most common questions people have about the term “6 figures” and 6 figure salaries.
Which jobs pay 6 figures?
There’s many different jobs where you can achieve a 6 figure salary. Here are a few examples, including the national average salary in the United States for each job (data sourced from Indeed).
- Software developer ($108,807)
- Nurse practitioner ($117,188)
- Petroleum engineer ($124,158)
- Pharmacist ($126,588)
- Corporate attorney ($139,880)
- Cardiologist ($187,846)
- Surgeon ($298,173)
- Owner-operator driver ($320,822)
Do you need a college degree to earn a 6 figure salary?
It’s not necessary to have a college degree to earn a 6 figure salary, but it certainly helps.
There are quite a few jobs that you can get without a college degree that have the potential to bring in a six-figure yearly income. For example, it’s quite common for competent software engineers to be hired even if they don’t have a college degree.
Examples of other high-paying jobs that don’t require a college degree include real estate agents, sales representatives, construction managers, air traffic controllers and commercial pilots. Some of these jobs might require you to obtain special certifications.
Another way to reach a 6 figure yearly income without a college degree is through entrepreneurship. However, becoming an entrepreneur is a high-risk, high-reward pursuit which might not be suitable for those that highly value stability in their life.
How many people earn 6 figures?
Roughly 18% of Americans make $100,000 or more per year. Meanwhile, 34.4% of American households are above this income threshold. These figures are sourced from research by Zippia.
At what age is it normal to be earning 6 figures?
Most Americans never reach a 6 figure salary, and it’s especially rare for young people to earn 6 figures. Generally speaking, Americans earn more as they get older.
According to research from Zippia, only 2% of Americans aged 25 or under are making $100,000 or more annually. Meanwhile, if we consider those aged 35 or under, the figure jumps up to 12%. On average, Americans are earning the highest salaries between the ages of 45 and 65.
How much is 6 figures in money?
“6 figures” refers to the range between $100,000 and $999,999. When the term “6 figures” is used to refer to salaries, it usually refers to annual salaries. So, someone earning a 6 figure salary earns between $100,000 and $999,999 per year.
How much is 6 figures a month?
The monthly income of someone who’s earning a 6 figure salary on an annual basis can vary significantly. If you earn $100,000 per year, that would translate to a monthly income of $8,333. Meanwhile, a $999,999 annual salary would translate to a monthly income of $83,333 per month.
How much is 6 figures per hour?
If we assume that there are 260 work days in a year and a work day consists of 8 hours, someone with a $100,000 annual salary would be earning $48 per hour. On the upper end of the 6 figure range, someone earning a $999,999 annual salary would be earning $480 per hour.
The bottom line
A 6 figure salary, which means an annual income of between $100,000 and $999,999, is considered a good salary almost everywhere in the United States. The reason why it’s called a 6 figure salary is because all of the numbers in this range have 6 digits.
If you’d like to learn more about colloquial terms that are commonly used in reference to money, check out our article exploring the term “grand”.
Source: https://coincodex.com/article/35018/how-much-is-6-figures-salary/