Guide · Hourly to salary
How to convert an hourly rate to a salary
The formula for turning an hourly rate into yearly, monthly and weekly pay, what counts as full-time hours and a worked example at £15 an hour. Start by use contracted paid hours per week, excluding unpaid breaks. 9 to 5 with an unpaid lunch hour is 35 hours.
By Uthman ChoudhuryPublished Updated
Skip the reading: use the Hourly to Salary Calculator for your own numbers.
How do you convert an hourly rate to a salary?
- Confirm your paid hours. Use contracted paid hours per week, excluding unpaid breaks. 9 to 5 with an unpaid lunch hour is 35 hours.
- Multiply by the hourly rate. £15 × 37.5 hours = £562.50 a week.
- Multiply by paid weeks. Use 52 if you get paid holiday. £562.50 × 52 = £29,250 a year.
- Divide for monthly pay. £29,250 ÷ 12 = £2,437.50 a month before tax.
- Work out take-home. Apply income tax and NI to the annual figure to see what you actually receive.
How do you convert an hourly rate to an annual salary?
Annual salary equals hourly rate × hours per week × paid weeks per year. The standard UK assumption is 52 paid weeks, because paid holiday is part of your salary. The number of hours is the part people get wrong: use contracted paid hours, not the hours you happen to be at work.
| Hourly rate | 35 hours | 37.5 hours | 40 hours | Take-home per month (37.5h) |
|---|---|---|---|---|
| £12.71 (NLW) | £23,132 | £24,785 | £26,437 | £1,780 |
| £13.00 | £23,660 | £25,350 | £27,040 | £1,814 |
| £15.00 | £27,300 | £29,250 | £31,200 | £2,048 |
| £18.00 | £32,760 | £35,100 | £37,440 | £2,399 |
| £20.00 | £36,400 | £39,000 | £41,600 | £2,633 |
| £25.00 | £45,500 | £48,750 | £52,000 | £3,218 |
Worked example: £15 an hour
£15 × 37.5 = £562.50 a week. × 52 = £29,250 a year, £2,437.50 a month. Income tax is £3,336 and NI £1,334, so take-home pay is £24,580 a year, which is £12.60 per hour worked. Going the other way, £29,250 ÷ 1,950 hours = £15.00.
What do people get wrong?
- Using 40 hours by default. If your contract says 37.5, a £1 an hour difference is £130 a year less than you calculated.
- Counting 48 weeks. Subtracting holiday weeks undercounts if your holiday is paid.
- Ignoring the age bands for minimum wage. The £12.71 rate applies from 21; 18 to 20 year olds get £10.85.
Use the hourly to salary calculator or browse every rate from £8 to £100.
Frequently asked questions
How many hours is full-time in the UK?
There is no legal definition. Most full-time contracts are 35 to 40 hours a week, with 37.5 the most common. The Working Time Regulations cap the average at 48 hours unless you opt out.
How do I convert a monthly salary to hourly?
Multiply the monthly figure by 12 to get the annual salary, then divide by weekly hours times 52. £2,500 a month on 37.5 hours is £30,000 ÷ 1,950 = £15.38 an hour.
Does the hourly rate include holiday pay?
For salaried and hourly-paid employees with fixed hours, yes: paid holiday is part of the 52 paid weeks. For casual or zero-hours workers, holiday pay is either accrued separately at 12.07% of hours or, unlawfully, rolled into the rate; check your contract.
Related calculators and guides
- Hourly to Salary CalculatorTurn an hourly rate into an annual salary and see what it is worth after tax.
- Salary to Hourly CalculatorBreak a salary down into what you earn per hour, day, week and month.
- Take-Home Pay CalculatorSee exactly what lands in your bank account after tax, NI, pension and student loan.
- Pro Rata Salary CalculatorScale a full-time salary to part-time hours and see the take-home pay.
- Pay Rise CalculatorFind out how much of a raise you keep after tax, NI, pension and student loan.
- Student Loan Repayment CalculatorMonthly repayments, years to clear and whether your loan will be written off first.
- GuideHow take-home pay is calculated in the UK