Money talks, but most people just whisper about it using code words.
“I make five figures” sounds way more impressive than saying “I earn $40,000.”
Figures are just a sneaky way Americans describe income without saying the full number.
Figures are used to describe your income in the US, though the rest of the world typically does not use this kind of phrasing.
It is often used to describe how much a person makes at their job without getting too specific. This can be important to know, especially if you are being interviewed for jobs and are hearing this phrase a lot.
So what does ‘figures‘ mean in money?
Let’s find out what a three-, four-, or five-figure salary means and whether or not these are good salaries to earn.
What Does a 3, 4 or 5-Figure Salary Mean?
If you have heard someone say that they make 3 or 5 figures, you may be wondering what this means. This is a very basic way of showcasing how much you make in a year. For example, 3 figures would be anything between $100 – $999 a year.
Usually, salaries are expressed by the year (but not always).
Figures are just an example of how many digits you make in a year. So, a three-figure salary could mean that you make $800 a year. While a four-figure salary could be, and you make $8000.
This is just a very simplistic way of showcasing how much you make without going into specifics. Many people in the US use figures to describe their annual salary.
If you are being interviewed and you hear about a figure salary, you know that this is what you would make in a year at this job.
People also use terms like “low six figures” or “mid seven figures” to give a more specific range without sharing an exact number.
How Much is a 3-Figure Salary?
If you do not expect to be making a five-figure salary, you may be wondering if a three-figure salary is still a good option. This is the kind of salary that many people end up looking at when they are applying for jobs with very little experience.
Unfortunately, a three-figure salary is not considered notable and is not desirable.
A salary of this amount is not even considered to be livable as you would not be able to afford the necessities of life, such as:
- Rent
- Food
- Utilities
- Insurance
- Taxes
A three-figure salary would be something like $999 or $700.
3-figures is anything between $100 and $999.
These are the amounts of money that most people would typically expect to make within a week, not within a month.
Because of this, a three-figure salary is not very good and is not considered to be a livable wage for most people. If you make this much, you would most likely have to live with someone else so that you do not have to pay all of the unnecessary expenses.
4-Figures Meaning
If you hear someone saying that they make a three-, four-, or five-figure salary, this is used to describe the digits of what they make in a year. So a four-figure salary would be something like $4000 a year.
It’s anything between $1000 and $9999.
This is used as a simplistic way of describing how much you make in a year without going into the specifics and numbers.
How Much is a 5-Figure Salary?
Now that you know what a figure salary is, you may be wondering what a five-figure salary means and if it is a good salary.
A 5-figure salary is anything between $10,000 and $99,999 per year.
Most full-time workers in the US fall somewhere in the five-figure range.
This is a salary that covers most basic living expenses and is considered a normal working income for many Americans.
If you want to reach a five-figure income in a skilled field, check out our guide to the easiest PA schools to get into as a good starting point for a well-paying career.
How Much is a 6-Figure Salary?
A six-figure salary is any yearly income from $100,000 to $999,999. So when someone says they earn a ‘six-figure salary,’ they’re making somewhere within that range.
So, when you hear the term ‘six-figure salary‘, it signifies a reasonably high-income level. Jobs with such salaries are often high-skilled roles, like doctors, engineers, or top managers.
Only about 17% of US households earn between $100,000 and $149,999 per year, which shows that a six-figure salary is still far from the average.
Reaching a six-figure salary often requires years of education or specialized skills. Want to explore a high-earning career path? See our list of the best medical schools in Texas for one of the most reliable routes to six-figure pay.
How Much is a 7-Figure Salary?
A seven-figure salary is any annual income from $1,000,000 to $9,999,999.
In other words, this means earning at least $1 million per year.
A person earning a seven-figure salary makes at least $83,333 per month before taxes.
This level of income is typically earned by top business executives, professional athletes, successful entrepreneurs, and high-profile entertainers.
Seven-figure jobs are rare and usually require either a very specialized skill set, a large audience, or years of building a business from the ground up.
How Much is an 8-Figure Salary?
An eight-figure salary is any annual income from $10,000,000 to $99,999,999.
This is the territory of elite CEOs, top professional athletes, and the most successful entertainers in the world.
Only around 23,000 tax filers in the US report income in this range, which is roughly 0.015% of all filers.
Most people will never earn an 8-figure salary, but understanding what it means helps put wealth levels in perspective.
People with this kind of income are often described as multi-millionaires.
Curious about what drives big career ambitions? Our list of examples of passions can help you find the motivation to aim higher in your own career path.