Money talks often use the terms five figures, six figures, or seven figures to describe income, salaries, or business earnings. But what exactly is five figures and how does it translate into actual financial circumstances?
In this article, we’ll break down what constitutes five figures, examine salary levels, share real-life examples, and help you determine whether a five-figure salary is sufficient today.
What Does “Five Figures” Mean?
The term five figures literally refers to a number between 10,000 and 99,999.
- A five-figure salary = yearly income between $10,000 and $99,999
- A five-figure business revenue = a firm grossing between $10,000 and $99,999 annually
Quick Examples
- $25,000 annually → ✅ five figures
- $75,000 annually → ✅ five figures
- $100,000 annually → ❌ this is six figures, not five
Is a Five-Figure Salary Common?
Yes—millions of individuals around the world make a five-figure income. But the lifestyle it affords is largely determined by:
- Location (New York City cost of living vs. Texas small town)
- Expenses (healthcare, rent, family size)
- Career stage (entry-level employee vs. seasoned professional)
Breaking Down Five-Figure Salaries by Range
1. Low Five Figures ($10,000 – $30,000)
- Often entry-level positions, part-time work, or early side hustles
- Common in internships, retail jobs, or developing nations
- Example: A part-time college student making $18,000/year
2. Mid Five Figures ($40,000 – $60,000)
- Average incomes for many professions
- Enough for modest living in most cities, but tight in expensive areas
- Example: An American school teacher earning $50,000/year
3. High Five Figures ($70,000 – $99,999)
- Professionals with several years of experience
- Comfortable living in most U.S. cities
- Example: A registered nurse making $85,000/year
Real-Life Examples of Five-Figure Income
Example 1: Entry-Level Worker
Sarah, a graphic designer fresh out of college, earns $35,000/year.
- She rents an apartment, budgets closely, and saves small amounts each month
- Her five-figure income pays for necessities but leaves little for luxury
Example 2: Mid-Level Professional
John, a mid-level IT support engineer, makes $55,000/year.
- He rents in a mid-sized city, owns a vehicle, and vacations once a year
- His income allows him to save for retirement while living comfortably
Example 3: Experienced Specialist
Lisa, a registered nurse, earns $92,000/year.
- She owns a home, supports her family, and still invests
- Although she’s at the top of five figures, moving into six figures would provide greater financial freedom
The Cost of Living Factor
A five-figure salary means completely different things depending on location:
- $60,000 in New York City → barely enough to cover rent and basic expenses
- $60,000 in a small Texas town → comfortable lifestyle with room for savings
That’s why financial planners always emphasize: income must be seen in context.
Is a Five-Figure Salary Sufficient?
The short answer: it depends.
- Single person, low-cost city → a five-figure salary can feel comfortable
- Family of four, expensive city → even a high five-figure income may feel tight
Benchmark: According to U.S. Census Bureau data, the median household income in the U.S. is around $74,000—squarely in the mid-to-high five-figure range.
How to Make the Most of a Five-Figure Income
- Budget Wisely – Use apps like Mint or YNAB to track expenses
- Prioritize Debt Repayment – Avoid high-interest debt eating into income
- Build an Emergency Fund – Save 3–6 months of expenses for security
- Invest Early – Even small retirement contributions grow significantly over time
- Explore Side Hustles – Freelancing, online businesses, or gig work can supplement income
Six Figures Within Reach: The Next Step
Many professionals aim to move into the six-figure range ($100,000+) for more stability and freedom.
Strategies to Level Up
- Upskill – Gain certifications or advanced degrees
- Negotiate – Always negotiate your worth in salary discussions
- Switch Industries – Sectors like tech or finance often offer higher pay
- Entrepreneurship – Start a side business that can scale into six figures
Five Figures in Business Revenue
Five figures isn’t just about salaries—it’s also a key milestone for businesses.
- $10,000/year → A side hustle proving viability
- $50,000/year → A freelancer sustaining full-time income
- $99,000/year → A startup preparing to scale into six figures
Final Thoughts
“How much is five figures?” isn’t just a math question—it’s a financial milestone.
A five-figure income or revenue can represent stability, growth, and potential. It may look very different depending on context, but it’s often the first meaningful step toward long-term financial success.
Whether you’re at the start of your career making $25,000, a professional earning $75,000, or a small business reaching $50,000 in revenue—five figures is a sign you’re moving forward.
The key? Manage it wisely, invest in your growth, and aim for the next milestone.