Hourly rate to salary

How an hourly rate becomes a salary

We multiply your hourly rate by the hours you work each week, then by the number of weeks you are paid in a year. A full year is 52 weeks. If there are weeks when you are not paid at all, such as unpaid leave or a gap between contracts, enter them as unpaid weeks and we take them off.

Your yearly total is then run through the same steps as our salary calculator: income tax, National Insurance and the take-home pay that is left.

A worked example

Someone paid £15.00 an hour for 37.5 hours a week, paid every week of the year, earns £29,250.00 a year before tax. In England, with no pension or student loan, that leaves £24,579.60 a year after tax, or £2,048.30 a month.

Paid holiday

Almost all workers are legally entitled to 5.6 weeks of paid holiday a year, and an employer can count bank holidays as part of it (GOV.UK: holiday entitlement). Because holiday is paid, it counts as paid weeks here. Only enter weeks when you get no pay at all.

What this calculator assumes

• You work the same hours every week, at the same rate. Overtime, shift premiums and bonuses are not included.
• A year is 52 weeks, and the monthly figure is the yearly figure divided by 12.
• You have one job, the standard tax code, and no pension or student loan. For those, use the salary calculator with the yearly figure shown here.

If your hours change from week to week, payroll works out tax on each payment, so what you take home can vary more than these yearly figures suggest. Read more on How we calculate.