Hourly to Annual Salary Calculator

This calculator converts between hourly pay and annual salary using standard UK working patterns. The default assumption is 37.5 hours per week over 52 weeks per year, giving 1,950 working hours annually. You can adjust hours per week, weeks of paid holiday and unpaid time to match your actual arrangement.

The formula is straightforward: Annual salary = Hourly rate × Hours per week × Paid weeks per year. For example, £15/hour over 37.5 hours and 52 weeks gives £29,250. The reverse calculation divides the annual salary by total working hours to find the effective hourly rate.

The calculator also shows your take-home pay after tax and NI at each level, helping you compare job offers quoted in different formats. Part-time workers can enter their actual weekly hours to get an accurate annual equivalent.

Standard UK conversions and assumptions. The standard UK formula: annual salary = hourly rate × hours per week × 52 weeks. £15/hour × 37.5 hrs × 52 = £29,250. Many employers exclude bank holidays paid from this — 8 UK bank holidays = ~£1,500 reduction at this rate. For salaried workers: divide annual by ~46 working weeks (accounting for 5.6 weeks statutory holiday + 0.4 unplanned absences). £30k salary ÷ (37.5 × 46) = £17.40/hr effective when actually working.

Why contractor and freelance rates are 50-100% higher. A £30k employee really costs the employer ~£35k after NI, pension, holiday, sick pay, training, equipment, management overhead. A freelance worker bears these costs themselves — needs to earn ~50% more to net the same. Plus contractors lack: paid time off, sick pay, statutory protections, pension auto-enrolment. Rule of thumb: contractor day rate = annual salary × 1.6 ÷ 220 working days. £40k salary = £290/day contractor rate equivalent.

Including holiday pay and bank holidays. UK statutory holiday: 5.6 weeks (28 days for full-time). Most full-time salaried workers have 20-25 holiday days + 8 bank holidays = 28-33 days off paid per year. Hourly workers: holiday pay should be 12.07% of pay earned (the EAT formula equivalent of 28/365 × 100). If your hourly rate doesn't explicitly include holiday pay, your employer must pay it as a separate payment when you take leave.

Overtime, shift premiums, and London weighting. Common premiums: time-and-a-half (1.5× rate) for overtime, double-time (2×) for bank holidays or unsocial hours, night shift allowance (10-30% extra). London weighting: typically £4-£6k/year added to salaries to compensate for higher London costs. Some sectors (NHS, civil service) have explicit London bands; others bake it into negotiated salary. London weighting is taxed as normal salary — no special treatment.