Is $58,000 a Good Salary? Evaluating Your Income

A salary of $58,000 is not fixed in value; its true worth is shaped by individual circumstances and economic conditions. Determining if this income level is “good” requires a comprehensive evaluation beyond the nominal figure. The impact of a $58,000 salary varies significantly, making a simple affirmative or negative answer misleading.

Evaluating Salary Against Cost of Living

Geographic location profoundly influences the purchasing power of a $58,000 salary. High-cost metropolitan areas present a vastly different financial reality compared to rural or lower-cost regions. Housing costs represent a significant portion of expenses, with average rental or mortgage payments ranging from under $1,000 to over $3,000 per month in major urban centers. This variation directly impacts disposable income after shelter.

Beyond housing, essential goods and services costs fluctuate across different areas. Utility expenses, including electricity, heating, and water, vary by hundreds of dollars monthly based on climate and local rates. Transportation costs, for vehicle ownership, fuel, or public transit, add another layer of expense that differs geographically. Daily necessities like groceries and personal services contribute to the overall cost of living, making a $58,000 salary stretch further in some communities.

To understand how a $58,000 salary translates in a specific location, individuals can use online cost of living calculators and publicly available data. These tools provide localized insights into typical expenses for housing, food, transportation, healthcare, and other categories. Researching local economic indicators helps gauge whether a $58,000 income supports a comfortable or modest lifestyle, or necessitates budgeting adjustments.

Personal Financial Factors

Personal financial situation and life goals play a significant role in assessing the adequacy of a $58,000 salary. Existing financial obligations, such as debt, directly reduce take-home pay available for discretionary spending and savings. Average monthly student loan payments range from approximately $300 to over $500, depending on the loan amount and repayment plan. Car loan payments average around $745 for new vehicles and $521 for used ones per month.

Credit card debt can consume a considerable portion of income, with average interest rates on accounts accruing interest around 21.95% as of February 2025, and potentially higher for those with lower credit scores. High-interest debt can quickly erode financial stability. Dependents, such as children or elderly parents, introduce additional financial responsibilities, including childcare, healthcare, and education expenses. The estimated annual cost of raising a child can be around $18,761 in 2025, with housing, food, and childcare as the largest portions.

Developing a detailed personal budget is crucial for understanding one’s income-to-expense ratio and determining if a $58,000 salary aligns with financial aspirations. Whether the goal is saving for a home down payment, accumulating retirement funds, or aggressively paying down debt, a clear financial plan allows for a realistic assessment of what the salary can support. Without a precise understanding of personal cash flow, the true impact of this income level on financial well-being remains unclear.

Industry, Experience, and Total Compensation

The industry in which one works, along with their level of experience, heavily influences whether a $58,000 base salary is considered competitive. Compensation varies widely across different sectors; for instance, roles in technology or specialized healthcare fields often command higher salaries than those in non-profit organizations or entry-level education. A $58,000 salary might be strong for an entry-level position in certain fields, but it could be below average for someone with significant experience or specialized skills.

Beyond the base salary, the concept of total compensation is important for a holistic evaluation. This encompasses a range of benefits and perks that add substantial value to an employee’s overall financial package. Health insurance, a common employer-provided benefit, significantly reduces out-of-pocket medical expenses. In 2025, the average total monthly premium for employer-sponsored health insurance is around $800 for single coverage, with employers typically covering a large portion, reducing the employee’s direct cost to approximately $132 per month for single coverage.

Retirement plan contributions, such as a 401(k) match, represent another valuable component of total compensation, as many employers offer a matching contribution that effectively provides “free” money towards an employee’s retirement savings. The average 401(k) employer match in 2025 is around 4% to 6% of an employee’s salary, often structured as a 50% match on the first 6% of contributions. This means an employer could contribute an additional $1,740 to $2,320 annually for someone earning $58,000, assuming they contribute enough to receive the full match. Other benefits like paid time off, performance bonuses, stock options, and professional development opportunities enhance the overall value of a compensation package, making a $58,000 base salary more attractive than it appears in isolation.

Understanding Broader Salary Benchmarks

To contextualize a $58,000 salary, it is helpful to compare it against broader economic data and national averages. The median individual income for full-time workers in the United States was reported as $1,139 per week in Q1 2024, which translates to approximately $59,228 annually. For all workers aged 15 and over with earnings in 2022, the median annual earnings were $47,960, while for those working full-time year-round, it was $60,070. These figures suggest that $58,000 is close to the national median for individual full-time earnings.

It is important to distinguish between gross income, which is the total salary earned, and net income, which is the amount received after deductions. For a $58,000 salary, mandatory deductions include federal income taxes, state income taxes (where applicable), and Federal Insurance Contributions Act (FICA) taxes. FICA taxes, comprising Social Security and Medicare, are 7.65% of gross wages for employees (6.2% for Social Security up to a wage base limit, and 1.45% for Medicare with no wage limit). For a $58,000 salary, this would amount to $4,437 in FICA taxes. Federal income tax brackets for a single filer in 2025 mean that different portions of the $58,000 are taxed at escalating rates, typically 10%, 12%, and 22%.

Reliable sources for salary data include government statistics from agencies like the Bureau of Labor Statistics (BLS) and the U.S. Census Bureau, which provide comprehensive occupational and demographic income information. Reputable salary aggregators also offer tools to research compensation ranges for specific roles and locations. While these national and occupational benchmarks provide a useful reference point, they represent general statistics. The personal and job-specific factors discussed previously remain the most important considerations for an individual to truly assess whether $58,000 is a suitable salary for their unique situation.