What Does 6 Figures Mean in Money?

The phrase “six figures” is a common, informal term used in financial discussions and everyday conversation. It describes a particular level of monetary value, often indicating a substantial amount. This article will clarify the numerical meaning of “six figures” and how it commonly applies to various financial aspects.

What ‘Figures’ Mean in Money

In monetary contexts, “figures” refer to the number of digits present in a given amount. This fundamental concept is key to interpreting financial shorthand terms. For instance, a single-figure amount ranges from $1 to $9, as these numbers each contain one digit.

A two-figure amount encompasses values from $10 to $99, all of which are represented by two digits. Similarly, an amount described as three figures falls between $100 and $999. This system applies consistently across all “figure” counts.

The Six-Figure Range

A “six-figure” amount defines a financial value that contains six digits. This range begins at $100,000 and extends up to $999,999. Any sum within these boundaries is considered a six-figure amount.

For example, $125,000, $500,000, and $999,999 are all distinct six-figure amounts. An amount like $99,999 is a five-figure sum, as it has only five digits. Conversely, $1,000,000 is a seven-figure amount because it possesses seven digits, marking the transition beyond the six-figure bracket.

Six Figures in Income and Wealth

The term “six figures” frequently describes annual income, indicating a salary or earnings between $100,000 and $999,999 per year. For instance, an individual earning $150,000 annually has a six-figure income. This refers to gross income, before taxes and other deductions are withheld.

Beyond income, “six figures” can also apply to accumulated savings or overall net worth. Having $750,000 in a savings account means an individual possesses six figures in savings. For net worth, which is total assets minus liabilities, a net worth of $400,000 would also be considered six figures. Tax considerations significantly impact take-home pay from a six-figure salary, as federal, state, and local taxes, along with payroll deductions, can reduce the net amount by 25-30% or more.

Relating to Other Figure Counts

A five-figure amount ranges from $10,000 to $99,999, indicating sums in the tens of thousands. For instance, a car priced at $35,000 falls within this category.

A seven-figure amount begins at $1,000,000 and goes up to $9,999,999. This range signifies amounts in the millions, such as a property valued at $2,500,000.

Finally, an eight-figure amount encompasses values from $10,000,000 to $99,999,999, representing tens of millions. For example, a major business transaction worth $50,000,000 would be an eight-figure sum.