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A pass/fail grading system allows a student to receive either a grade of “P” (pass) or “F” (fail) for a particular class instead of the usual letter grading system. Many colleges offer this option in order to encourage students to explore new academic areas without having to worry about it affecting their transcripts.

However, the pass/fail grading system comes with some limitations, including restrictions on which and how many classes you can take pass/fail each year. And, in some cases, taking a class pass/fail can still have an impact on your academic record.

Read on to learn exactly what pass/fail means, what a passing (and failing) grade is, and when to consider a pass/fail option.

How Pass/Fail Grading Works

The traditional grading system was initially established centuries ago by English universities like Oxford and Cambridge as a way of encouraging students to work harder. While letter grades may still be the dominant system in American universities, some schools have deviated from this structure, establishing their own ways of evaluating students largely based on the pass/fail system.

Reed College in Portland, Oregon has a unique style of grading that encourages students to “focus on learning, not on grades.” While students are still assigned grades for each course, these grades are not distributed to students. Instead, students are given lengthy comments and reports on their academic performance. Reed does not have a dean’s list or honor roll either.

At Brown University students can take an unlimited number of classes “satisfactory/no credit (S/NC),” and GPAs are not calculated. They also do not name student’s to a Dean’s list.

Some schools, including Swarthmore College and MIT, have students take all classes pass/fail in the first semester of their freshman years. Swarthmore’s policy is meant to encourage students to stretch themselves and take risks, and is aligned with their policy of collaboration as opposed to competition with classmates, while MIT’s policy is designed to help students adjust to increased workloads and variations in academic preparation and teaching methods.

In both cases, taking the emphasis off grades is meant to improve students’ experiences of higher education, helping them to take full advantage of their time on campus.

Of course, most schools emphasize letter grades more than Brown and Reed, as it allows them to distinguish high achievers and highlight specific areas where students excel or may need to improve.

It’s common, however, for colleges to allow students to take one class pass/fail per semester. Typically, this is only offered for elective (not core) classes. Often, a grade of “P” is equal to a grade of D- or higher, but has no impact on the student’s overall grade point average. A grade of “F,” however, will usually have the same effect on the grade point average as a traditional failure.


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What Are The Benefits of Pass/Fail?

While college can be a rewarding and stimulating time for students, it also has its challenges, including constant pressure to keep up your grades. The beauty of taking a class pass/fail is the sense of freedom it gives you — once the stress of getting a perfect grade is removed, you are at liberty to fully embrace the kind of intellectual curiosity that should be at the heart of a college experience.

Maybe you’re a pre-med student and want to take a painting class, or perhaps you’re majoring in sociology and want to dabble in art history. These options can lead you down unexpected paths, opening creative doors you might have avoided if you were solely focusing on your GPA.

Recommended: How Grades Affect Your Student Loans

The Limits to Pass/Fail

The pass/fail system also has some potential downsides. One is that should you end up doing really well in the class, you generally can’t change your mind and ask to take the class for a grade rather than pass/fail. By the same token, if you do poorly in a class, you can’t make a belated request for a pass/fail.

In addition, pass/fail grades generally don’t count toward a major or minor, which limits your options when deciding whether or not to go this route.

While it’s hard to know for sure, some students feel that taking a higher number of pass/fail classes could reflect poorly on their college academic record and be a strike against them when applying for a job or to graduate school. However, it’s also possible that a potential employer or an admissions officer might be impressed by a student’s breadth of study and sense of initiative in studying “outside the box.”


💡 Quick Tip: Master’s degree or graduate certificate? Private or federal student loans can smooth the path to either goal.

The Takeaway

Taking a few of your classes pass/fail can be a great way to explore new academic areas of interest during college, and is unlikely to adversely impact your post-grad opportunities, including summer internships, employment, and graduate school.

While employers and graduate school admissions officers generally prefer to see quality grades over pass/fail grades, they will typically review applications holistically, and grades are just one of many ways you can show your skills, knowledge, and leadership potential. Indeed, taking a few pass/fail classes that are outside your major can show intellectual curiosity.

Whether you take a class pass/fail or for a letter grade won’t have any impact on how many credits you get from the course — or the cost of tuition. If you’re concerned about how you’ll cover the cost of your education, keep in mind that you have a range of options — including savings, scholarships, grants, work-study programs, and federal or private student loans.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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The Secured Overnight Financing Rate (SOFR) is the benchmark interest rate that has replaced the London Interbank Offered Rate (LIBOR) in the U.S. In fact, for the past several years, lenders have been gradually switching from using LIBOR to determine rates for consumer loans, such as student loans, to using SOFR.

Here’s what you need to know about SOFR, including how it differs from LIBOR, and how you might be impacted by the change.

What Is the Secured Overnight Financing Rate (SOFR)?

Financial institutions now use Secured Overnight Financing Rate, or SOFR, as a tool for pricing corporate and consumer loans, including business loans, student loans, mortgages, and credit cards. SOFR sets rates based on the rates that financial institutions pay one another for overnight loans (hence the name). The SOFR rate is published daily by the Federal Reserve Bank of New York.

SOFR is a popular benchmark because it is risk-free and transparent. It is based on more than $1 trillion in cleared marketplace transactions. This in contrast to the index it has replaced, the London Interbank Offered Rate, better known as LIBOR. LIBOR was based on hypothetical short-term loan rates. This has historically made LIBOR less reliable and more vulnerable to insider manipulation.


💡 Quick Tip: You can fund your education with a low-rate, no-fee private student loan that covers all school-certified costs.

How Does the SOFR Work?

When large financial institutions lend money to one another, they must adhere to reserve and liquidity requirements. They do this by using Treasury bond repurchase agreements, known as “repos”. Using repo agreements, Treasurys are used as collateral and banks are able to make overnight loans.

The SOFR interest rate index is made up of the weighted averages of the interest rates used in real, finalized repo transactions. Every morning, the New York Federal Reserve Bank publishes the SOFR rate it has calculated for repo transactions on the previous business day.

Current SOFR Rates

The New York Federal Reserve publishes the SOFR rate every business day. The latest rate is:

5.06% on July 25, 2023

The History of SOFR

Financial institutions, banks, and lenders rely on certain indexes to determine interest rates. Before the 1980s, there wasn’t one particular index that was used internationally. However, during the 1980s, increased complexity in the market resulted in the need for more standardized use of a benchmark tool for determining adjustable rates.

The international financial industry adopted LIBOR as the standard because it was viewed as a trusted, accurate, and reliable index. Other indexes were still used, but the majority of institutions used LIBOR. LIBOR rates were once the basis for about $300 trillion in assets around the world.

Fast forward to around 2008, and certain large financial institutions were manipulating interest rates illegally in order to increase their profits. This was possible in part because LIBOR is based on hypothetical rates. Manipulation of rates was one factor that led to the financial crisis.

Once that manipulation was discovered, there was a global demand for a new rate benchmark and a call to end the use of LIBOR. As a result of the 2008 financial crisis, banking regulations led to less borrowing and a lessening of trading activity. Less trading made LIBOR even less reliable.

In 2017, the Federal Reserve formed a group of large financial institutions known as the Alternative Reference Rate Committee (ARRC) to work on finding an alternative to LIBOR. They ultimately chose SOFR.

Both LIBOR and SOFR were being used by banks and lenders until June 2023, when SOFR became the standard in the U.S.

How SOFR Is Different From LIBOR

There are some key differences between SOFR and LIBOR, which help explain the shift towards SOFR and away from LIBOR. Here’s a look at some of the biggest.

•   SOFR is based on completed transactions, whereas LIBOR is based on the rates that financial institutions said they would offer each other for short-term loans. Because it’s based on hypotheticals, LIBOR is more vulnerable to manipulation.

•   Lending based on LIBOR doesn’t use collateral, making it unsecured. Loans using LIBOR include a premium due to credit risk. SOFR, on the other hand, is secured, as it is based on transactions backed with Treasurys. Therefore, there is no premium included in the interest rates.

•   SOFR is a daily (overnight) rate, while LIBOR has seven variable rates.

Recommended: What’s the Average Student Loan Interest Rate?

How SOFR Could Affect You

There has been some concern that the shift away from LIBOR would cause great market disruption. However, the changeover was designed to be slow and gradual and, generally, hasn’t caused any sudden changes for borrowers.

In fact, if you have a federal student loan or a private student loan with a fixed-rate, the change from LIBOR to SOFR has not — and will not — have any impact on your loan, since the rate is fixed for the life of the loan. If you are entering into a new loan, SOFR rates are already being used.

If you have a student loan (or any other type of loan) with a variable rate, the shift from LIBOR to SOFR may have impacted your loan — but likely not in any noticeable way. Switching from one index (LIBOR) to another, largely similar index (SOFR) — in the absence of any other market changes — won’t have much impact on a loan’s interest rate, according to the Consumer Financial Protection Bureau .

The rate on an adjustable-rate loan can go up and down over time. These changes, however, are largely due to general ups and downs in interest rates across the economy. Loan rates have been going up across the board, but that is not due to the shift from LIBOR to SOFR. Rather, it’s the result of efforts by the Federal Reserve to tamp down inflation.


💡 Quick Tip: It’s a good idea to understand the pros and cons of private student loans and federal student loans before committing to them.

The Takeaway

If you have a student loan, you may have received a notice from your lender or servicer about a change in the index rate for your loan. Instead of LIBOR, lenders in the U.S. are now using SOFR. The indexes work in a similar way and it should not have a major impact on your loan. If you’re in the market for a new loan, you won’t be affected by the switch, since U.S. lenders have already made the shift to SOFR.

Keep in mind, though, that interest rates on loans are based on numerous factors, including general market conditions and your (or your cosigner’s) qualifications as a borrower.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Photo credit: iStock/Nicholas Ahonen

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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If you’re passionate about food, a career in the culinary arts may be right for you. Going to culinary school can help you acquire the knowledge, skills, and hands-on experience required to work in the field.

But how much does it cost to go to culinary school compared to trade school or traditional college? It depends on where you go and the type of degree you pursue. Getting a bachelor’s degree at a private school can run as high as $120,000. However, going to an in-state public culinary school and/or pursuing a shorter (associate) degree can cost significantly less.

This guide will examine culinary school cost factors and payment options to help you decide if it’s the right move for your future.

Tuition Rates for Culinary Schools

The cost of culinary school will depend on what degree you pursue and whether you go to a private or public culinary school.

Getting an associate degree at a public school can run $35,000 to $40,000 if you live in-state, or $40,000 to $50,000 if you live out-of-state.

An associate degree at a private culinary school, on the other hand, can run $50,000 to $56,000.

Pursuing a bachelor’s degree in the culinary arts generally comes with a higher price tag. At a public school, it can cost $47,000 to $50,000 (if you live in-state) and $50,000 to $100,000 (if you live out-of-state). The cost of getting a bachelor’s degree at a private school can run around $120,000.

When evaluating a program’s sticker price, keep in mind that tuition pricing may reflect a standalone semester, rather than the entire program cost. Depending on your field of study and type of degree you pursue, you may need anywhere from four to eight semesters to finish a program or degree.


💡 Quick Tip: Fund your education with a low-rate, no-fee SoFi private student loan that covers all school-certified costs.

Why Is Culinary School So Expensive?

Culinary schools can have an intensive structure. Condensed schedules can translate to more time spent in both the classroom and kitchen than typical college students.

Whereas a lecture hall can accommodate hundreds of students for an Intro to Economics course, culinary students typically receive more one-on-one instructions in smaller class sizes. Also, culinary coursework that involves cooking and baking has the added cost of buying ingredients and materials.

Culinary school costs might also include purchasing cooking equipment, such as knives, cutting boards, and a kitchen uniform. Depending on the program, these may be automatically factored into the tuition price or tacked on as an additional fee.

Recommended: What Is the Average Cost of College Tuition in 2023?

Types of Culinary Degrees Available

You have a variety of options to choose from for a culinary degree. The types of schools offering culinary degrees include technical schools, community colleges, four-year colleges, and independent culinary institutes.

Students can choose from certificate programs, an associate’s degree, or a bachelor’s degree in culinary arts.

Certificate programs are usually the shortest to complete with one to two semesters of coursework and training. Associate’s programs generally last two years and may incorporate a mix of hands-on training, internships, and coursework. Bachelor’s degrees require more time ― generally four years ― to complete but can help further develop culinary skills and knowledge in related subjects like business and nutrition.

Culinary degrees can also focus on a specific discipline, such as baking and pastry arts or hospitality and restaurant management. Interested students can explore this list of accredited culinary schools to find a program that suits their needs and career goals.

How Can You Pay for Culinary School?

A combination of funding sources may be required to cover tuition, equipment, and related expenses. Prospective students and parents can consider the following options to pay for culinary school.

Grants and Scholarships

Figuring out how much culinary school is going to set you back starts with filling out the Free Application for Federal Student Aid (FAFSA) to determine eligibility for federal financial aid. You may qualify for assistance in the form of grants if you have significant financial need.

There are also numerous culinary-specific scholarships that you can apply for. The National Restaurant Association awards merit-based scholarships between $2,500 to $10,000 for students pursuing undergraduate degrees in culinary arts and related fields.

Some additional grant and scholarship opportunities include:

•   The James Beard Foundation This nonprofit organization awards scholarships, tuition waivers, and work-study grants to students attending accredited culinary schools.

•   The American Institute of Wine and Food (AIWF) Full-time students attending accredited culinary schools can apply for an AIWF scholarship from local chapters in California and Kansas.

•   Rachel Ray, Yum-o! The famous Food Network chef’s nonprofit funds culinary scholarships in partnership with the National Restaurant Association Education Foundation.

You can also explore grants for college from state government and private organizations for additional funding.

Federal Student Loans

Students may need to use student loans when scholarships and grants aren’t sufficient, and they cannot afford to pay out of pocket.

Through the Federal Direct Loan Program, you can access both subsidized and unsubsidized loans to pay for school. Subsidized loans are awarded based on a student’s financial need. The Department of Education pays the interest on subsidized loans while you are studying at least half-time, and during the six-month grace period after leaving school. You may be eligible to defer loan payments further if you attend graduate school, join the military, or experience financial hardship.

Unsubsidized loans don’t require you to have financial need to be eligible. Schools determine how much students can borrow based on the cost of attendance and a student’s total financial aid package. Interest on unsubsidized loans begins accruing as soon as the loan is disbursed.

Dependent students can get up to $31,000 in federal student loans for four years of full-time study. Only $23,000 of this can be subsidized loans. Independent students, however, can take out up to $57,500 in federal loans, with subsidized loans also capped at $23,000.

Recommended: Types of Federal Student Loans

Employment

If financial aid isn’t enough to cover culinary school costs in full, working while studying could help pay the remainder.

Students with financial need may qualify for part-time employment through the Federal-Work Study program. Work-study jobs are typically geared towards a student’s area of study or community service. Awards can vary according to the student’s need, the timing of application, and how much total funding is available at a given participating school.

Finding part-time work at a restaurant or food-related enterprise is another funding option that also supports professional development.

Private Student Loans

If financial aid and other sources aren’t enough to pay for culinary school in full, you can consider a private student loan.

You can obtain private student loans from banks, credit unions, and online lenders. Some students may need a cosigner to qualify for private student loans due to a lack of credit history and income.

Private student loan interest rates and loan terms vary by lender, which gives borrowers more choice in term length. However, private student loans do not carry the same borrower protections as federal student loans, such as income-driven repayment plans, deferment or forbearance, or the Public Service Loan Forgiveness program. You may want to consider private student loans as an option only after you have exhausted all other sources of aid, including federal student loans.


💡 Quick Tip: It’s a good idea to understand the pros and cons of private student loans and federal student loans before committing to them.

The Takeaway

While many food service and restaurant jobs don’t require education beyond a high school diploma, completing culinary school could lead to a higher-paying career. According to the Bureau of Labor Statistics, the average salary in 2022 for chefs and head cooks at restaurants was $56,130. With experience, you can earn considerably more. According to Glassdoor, the average annual pay for an executive chef in New York City is $87,629.

There are numerous ways to cover the cost of culinary school, including federal and private student loans, work-study, financial aid, and scholarships.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Photo credit: iStock/visualspace

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOIS0723012

One career path that is both challenging and rewarding is a medical biller and coder. How much does a medical coder make? According to data from the U.S. Bureau of Labor Statistics (BLS), medical records specialists (aka medical billers and coders) make a median of $47,180 per year, or $22.69 per hour.

Keep reading to learn what medical billers and coders do, and the qualifications and requirements.

What Are Medical Coders?

A medical biller and coder’s job responsibilities revolve around translating a physician’s medical reports into uniform medical codes that can be easily understood by insurers and other health care facilities. These professionals need to be detail-oriented, as one letter or number out of place can make a big difference. This type of work is also fairly independent and as such is a solid fit for introverts with anxiety.

A medical biller and coder steps in after the physician meets with a patient. Their work helps health insurance providers process the patient’s bill. Communication is primarily conducted using codes that describe medical diagnoses and procedures.


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Medical Coder Job Responsibility Examples

A medical biller and coder needs to know the following protocols:

•   Clinical documentation

•   Health information technology

•   Customer billing

•   Disease classification through ICD-10 codes

•   Medical services and procedures classification via CPT codes

•   Hospital facilities, supplies, and procedures through Inpatient coding

•   Medicare and Medicaid coding via HCPCS

Medical billers and coders also need to remain HIPAA-compliant throughout their work. HIPAA stands for the Health Insurance Portability and Accountability Act and deals with patient privacy.

How Much Do Starting Medical Coders Make?

According to the BLS’s most recent data from 2022, the bottom 10% of medical records specialists earn less than $31,710, typically at the entry-level stage. At the other end of the spectrum, 10% of workers in this role earn more than $75,460.

Medical coders may be paid by the hour or salaried.


💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

What Is the Average Salary for a Medical Coder?

On average, professional medical coders can expect to make $47,180 per year or $22.69 per hour. However, the type of medical coding job they take on can affect how much they’ll be paid. Some types of workplaces tend to pay more competitively for this skill set.

The top workplaces for medical coders and their mean salaries include:

•   Insurer carriers: $64,800

•   Physician offices: $42,800

•   Residential care facilities: $44,350

•   Administrative and support services: $57,950

•   Hospitals (state, local, and private): $54,210

The state someone lives in also impacts their earning potential as a medical biller and coder.

Recommended: The Highest-Paying Jobs by State

Medical Coder Job Considerations for Pay and Benefits

Professionals considering this career path should keep benefits top of mind. Because most medical records specialists work full-time positions, candidates may want to focus their job search on roles that come with health insurance, paid time off, and retirement plans.

Pros and Cons of Medical Coder Salary

Before deciding to pursue a career as a medical biller and coder, consider these advantages and disadvantages.

Pros

•   Four-year degree not required. To become a medical biller and coder, only a short accredited training program is required. It generally takes 7-24 months to complete training.

•   Training can be completed online. This means that students can balance a full-time job and/or family obligations while completing their education.

•   Low training costs. These programs are typically much cheaper than pursuing a four-year degree or training for high-paying trade jobs. Students can expect to pay $1,000 to $3,000 per training program.

•   Work-from-home potential. Many medical biller and coder jobs are remote. This makes medical coding a good work-from-home job for retirees.

Cons

•   High school diploma or GED required. While students can skip the traditional college route in pursuit of this career path, they do generally need either a GED or high school diploma to be eligible for the required training programs.

•   Certification required. Once a student completes a medical biller and coding training program, they need to become certified. This requires passing both the Certified Professional Coder (CPC) and the Registered Health Information Technician (RHIT) exams.

•   Must renew certifications. One major hurdle associated with being a medical biller and coder is needing to renew your certification every two to three years.

•   Risk of carpal tunnel syndrome. Because of the repetitive typing motions with this role, developing carpal tunnel syndrome is a possibility.

Recommended: How Much House You Can Afford Based on Income

The Takeaway

Working as a medical biller and coder can be a great career path for individuals who are detail-oriented and like a job with consistent responsibilities. That said, this role does require formal training, passing certification exams, and maintaining a professional certification. So this career path requires a level of commitment.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

What type of medical coder makes the most money?

Hospital medical coders make the most money, as well as those in professional, scientific, and technical services. The median annual salary for those niches is $47,000.

What is the highest paid medical biller and coder?

The type of medical coding work someone does, their experience level, and their location can all impact earnings. The top 10% of high earners in the medical biller and coder field earn more than $74,200.

Is becoming a medical biller and coder worth it?

On the low end, 10% of medical coders earn less than $29,430. However, this career path offers much higher earning potential for committed and experiences pros.

Photo credit: iStock/Marco VDM

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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YouTube is a lucrative platform for both marketers and content creators. YouTube had 1.7 billion unique monthly visitors and 14.3 billion visits per month in 2022 — more than Amazon, Facebook, Instagram, or Wikipedia — making it an advertiser’s nirvana. Talented influencers flock to YouTube to create video channels, and many earn around $60,000 per year on the platform from advertisers. However, they need at least 4,000 hours of unique content and at least 1,000 subscribers to do so.

Here’s a closer look at the average payouts for YouTubers and the heftier payouts for celebrity influencers with outstanding content.

How Much Do YouTubers Make on Average in 2023?

The salary and career website ZipRecruiter reports that the average YouTuber made around $66,000 per year as of May 2023. That’s competitive pay for an entry-level salary. The highest salaries for YouTubers are around $80,000, while the lowest are around $53,500. Interestingly, the range between higher- and lower-paid YouTubers is only around $8,500, implying that experience does not lead to significant advancement.

ZipRecruiter also finds 10 cities where the typical salary for a YouTube Channel job is above the national average, and they are all in California. The leading city is Sunnyvale, where salaries are almost 30% higher than average, followed by Livermore and Vacaville. Although YouTube salaries are higher in California, the cost of living is also high, which might cancel out any salary gains.


💡 Quick Tip: Online tools make tracking your spending a breeze: You can easily set up budgets, then get instant updates on your progress, spot upcoming bills, analyze your spending habits, and more.

Top 10 YouTubers for 2022

The following is a list of the 10 most-subscribed YouTubers along with a brief overview of the reasons for their online appeal. The data were sourced from Search Engine Journal, an online news source for the SEO and marketing community.

1. MrBeast

Subscribers: 116 million; Views: 19,263,779,296

MrBeast, aka Jimmy Donaldson, is a young YouTuber and philanthropist originally from Greenville, North Carolina. He began posting videos in 2013, when he was just 13 years old. He went viral in 2017 with his “counting to 100,000” video. His videos include survival challenges, vlogs, and philanthropic content. Other than the MrBeast channel, Donaldson also runs Beast Reacts, MrBeast Gaming, MrBeast 2, and a philanthropy channel called Beast Philanthropy. Donaldson was recently named one of the world’s 100 most influential people by Time magazine.

2. PewDiePie

Subscribers: 111 million; Views: 28,783,562,329

PewDiePie, or Felix Arvid Ulf Kjellberg, is a Swedish gaming YouTuber. He registered his channel “PewDiePie” in 2010 and primarily posted videos of himself playing horror and action video games. His channel was one of the fastest-growing channels in 2012 and 2013, and it soon diversified to include vlogs, comedy, shows, music videos, and fundraising. Some of Kiellberg’s content became controversial, and after 2019, Kjellberg semi-retired and uploaded less consistently. In 2016, he was named one of the world’s most influential people by Time magazine.

3. Like Nastya

Subscribers: 102 million; Views: 85,894,111,041

Anastasia Sergeyevna Radzinskaya, or Like Nastya, is a Russian-American YouTuber born in 2014. Her content targets a young audience and features children’s songs, educational entertainment, unboxings (opening parcels containing toys), vlogging, and role play. Nastya’s content is dubbed into multiple languages, including German, Arabic, Bangla, French, Portuguese, Hindi, Spanish, Korean, Vietnamese, and Indonesian. According to Techie and Gamers, a tech media site, she has an estimated annual income of $20 million.

4. Justin Bieber

Subscribers: 70.7 million; Views: 29,324,935,875

Justin Bieber is known, first and foremost, as a Canadian musician. His original YouTube channel was called Kidrauhl — so named because his father called himself “Lordrauhl.” Bieber posted videos of his songs on Kidrauhl and became famous through the platform. Bieber’s channel Kidrauhl was renamed “Justin Bieber” in 2017.

5. Marshmello

Subscribers: 56.1 million; Views: 13,873,454,613

Marshmello’s real name is Christopher Comstock. He is an American musician, DJ, and producer of electronic music. In 2015, Marshmello began publishing remixes online. “Alone” was his first single to be certified platinum in the United States and Canada. He has collaborated with other musicians, such as American R&B singer Khalid, American singer Selena Gomez, and American rapper Juice Wrld. Marshmello’s trademark image is a custom white helmet, resembling a marshmallow. He kept his identity a secret until Forbes confirmed his real name in 2017.


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6. EminemMusic

Subscribers: 54.4 million; Views: 24,883,449,535

Marshall Bruce Mathers III, known as Eminem, is an American rapper, songwriter, actor, and record producer. His debut album, “Infinite,” was released in 1996. Rolling Stone has included him in its lists of the 100 Greatest Artists of All Time and the 100 Greatest Songwriters of All Time. In November 2022, Eminem was inducted into the Rock and Roll Hall of Fame. His YouTube channel features his music videos and is called EminemMusic.

7. Ed Sheeran

Subscribers: 52.7 million; Views: 28,695,696,678

Edward Christopher Sheeran is an English singer-songwriter and actor who began writing songs when he was eleven years old. Sheeran’s first hit single was “The A Team” from his debut album, “Plus.” Sheeran’s second album, “Multiply,” topped charts worldwide in 2014. Sheeran is one of the world’s best-selling musicians and was the most followed artist on Spotify in 2022. In December 2019, the Official Charts Company named him artist of the decade.

8. Ariana Grande

Subscribers: 52.1 million; Views: 22,802,079,830

Ariana Grande-Butera is an American singer, songwriter, and actress who is noted for her vocal range. She has two Grammy Awards, one Brit Award, one Bambi Award, two Billboard Music Awards, three American Music Awards, nine MTV Video Music Awards, and 30 Guinness World Records. Grande is the most streamed female artist of all time and the most subscribed female solo artist on YouTube. Rolling Stone placed her in their list of 200 Greatest Singers of All Time (2023). Grande advocates for animal rights, mental health, and gender, racial, and LGBT equality.

9. Taylor Swift

Subscribers: 50.4 million; Views: 27,275,211,507

Taylor Alison Swift is an American singer-songwriter. She was born in West Reading, Pennsylvania, but moved to Nashville at age 14. Her 2006 debut album “Taylor Swift” made her the first female country artist to write a U.S. platinum-certified debut album. Swift is one of the best-selling musicians in history and the only person to have five albums open with over one million copies sold in the United States. Swift has been named in Rolling Stone’s 100 Greatest Songwriters of All Time. She has also been named Artist of the Decade and Woman of the Decade and is an advocate for artists’ rights and women’s empowerment.

10. JuegaGerman

Subscribers: 46.8 million; Views: 14,016,556,814

Germán Alejandro Garmendia Aranis is a Chilean YouTuber, singer-songwriter, comedian, and writer. His YouTube channel HolaSoyGerman features humorous videos about everyday situations. He has another YouTube gaming channel called JuegaGerman, which is the second-most subscribed channel in the Spanish language. He has a vibrant musical career and has released two books. German was listed as one of the biggest YouTube stars by The Washington Post and one of the most influential people in Time magazine.

How Much Money Does a YouTuber Make Per View?

YouTubers make money from advertisers who place ads with their videos. YouTubers are paid based on how many of their viewers watch the ads that accompany their content. Even if a video gets thousands of views, if no one watches or clicks on the ads, the YouTuber won’t make any money. For a YouTuber to be compensated, a viewer must either click an ad or watch the video ad in full. According to data from Influencer Marketing Hub, the average YouTube channel receives around $0.018 per view.

How Much Do YouTubers Make Per 1,000 Views?

A YouTuber earns roughly $18 per 1,000 ad views. YouTuber earnings vary depending on whether a video is short or long-form. YouTubers’ reported income per 1,000 views range between $1.61 and $29.30 for long-form videos. For short-form videos, the payouts were between $0.04 to $0.06 per 1,000 views.

How Much Does a YouTuber Make With 1 Million Subscribers?

The money made on YouTube may not be consistent, particularly for creators who don’t upload new content regularly to ensure a growing following. One YouTuber with 1 million subscribers made between $14,600 and $54,600 per month.

How Much Ad Revenue Does YouTube Pay Content Creators?

According to Influencer Marketing Hub, creators earn about 55% of the revenue on their channels — for every $100 an advertiser pays, Google pays $55 to the creator. It’s unlikely that a creator will make much money until there is significant traffic to the site and viewers click on ads.

There are some ads that pay per thousand views, but for the view to be counted for payment, a viewer must watch an ad for at least 30 seconds (or half the ad for a very short video). If viewers do click on or view ads for long enough to earn income, the creator shares any advertising revenue with YouTube. Creators only get paid once their AdSense account reaches $100.

The Takeaway

With 1.7 billion unique monthly visitors and 14.3 billion visits per month, YouTube is a go-to platform for entertainment, education, and marketing. Many YouTubers and celebrities reap millions from ad revenue by posting music videos, gaming videos, entertainment, and educational content. However, for the less famous, it is possible to earn $60,000 to $80,000 a year, which is a competitive salary. YouTubers need traction and a significant following. Pay-outs are typically based on ad views and are made through Google Adsense.

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FAQ

How much does a YouTuber make a year?

ZipRecruiter reports that the average YouTuber makes around $66,000 per year as of May 2023. The highest salaries are around $80,000, while the lowest are around $53,500.

How much does a YouTuber with 1 million subscribers make?

One YouTuber with about 1 million subscribers made between $14,600 and $54,600 per month. However, the money made on YouTube may not be consistent, particularly for creators who don’t upload new content regularly to ensure a growing following.

Do YouTubers get paid monthly?

YouTube uses an algorithm created in AdSense to decide when and how much to pay content creators. AdSense is a separate entity owned by Google. Vloggers that gain enough traction to warrant earnings are paid monthly via direct deposit.

Photo credit: iStock/Youngoldman

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