Hourly to Salary Calculator
Convert between hourly rate and annual salary. Enter your hourly rate or annual salary and working hours to see all equivalent rates.
Reviewed by Richard Ross · Last updated April 2026
How Hourly to Salary Calculator works
Hourly rate to annual salary
Annual Salary = Hourly Rate × Hours per Week × Weeks per Year. The default assumes 37.5 hours per week and 52 weeks per year (full year, no unpaid leave). Adjust weeks if you take unpaid leave or work part of the year.
Annual salary to hourly rate
Hourly Rate = Annual Salary ÷ (Hours per Week × Weeks per Year). This is the gross hourly rate before tax and National Insurance. For a net (take-home) hourly rate, use the Take-Home Pay Calculator.
Full-time equivalent (FTE)
A standard full-time working year in the UK is typically 1,820–1,950 hours (35–37.5 hours × 52 weeks). After deducting 28 days statutory holiday (5.6 weeks), the effective weeks worked is around 46.4, giving 1,740 hours for a 37.5-hour week.
National Minimum Wage
From April 2025, the National Living Wage is £12.21/hour for workers aged 21+. At 37.5 hours per week, this equates to an annual salary of approximately £23,810. The National Minimum Wage for 18–20 year olds is £10.00/hour.
UK context: IR35 and contractor day rates
UK contractors operating through a limited company often quote a daily rate rather than an annual salary. A typical IT contractor day rate of £500/day (based on 8 hours) equates to £62.50/hour. At 46 weeks worked per year (accounting for holidays), this gives a gross income of £115,000. However, IR35 legislation means that contractors working like employees inside client organisations may be taxed as employees, significantly reducing take-home pay. Outside IR35, income can be drawn as salary and dividends, reducing National Insurance costs.
Worked example: part-time to full-time equivalent
A part-time employee works 22 hours per week at £14/hour. Annual salary = £14 × 22 × 52 = £16,016. Their full-time equivalent (FTE) salary at 37.5 hours would be £14 × 37.5 × 52 = £27,300. For employer cost planning, remember to add employer National Insurance (15% on earnings above £5,000/year from April 2025) and any pension auto-enrolment contributions (minimum 3% employer contribution on qualifying earnings).
Source: GOV.UK — National Minimum Wage rates (gov.uk/national-minimum-wage-rates). GOV.UK — Employer NI contributions (gov.uk/employers-national-insurance). DWP — Auto-enrolment for employers (gov.uk/workplace-pensions-employers).
Frequently asked questions
What is £15 an hour annually?
£15 per hour × 37.5 hours × 52 weeks = £29,250 per year gross. Monthly gross is £2,437.50.
What is £35,000 a year hourly?
£35,000 ÷ (37.5 hours × 52 weeks) = £17.95 per hour gross. This is the gross rate — your take-home hourly rate will be lower after income tax and NI.
Does this include holiday pay?
The default calculation assumes you work 52 weeks — it includes holiday pay as part of the annual salary. If you want to calculate for weeks actually worked (e.g., 46.4 weeks after 5.6 weeks holiday), change the weeks per year field.
How do I calculate my day rate as a contractor?
Daily rate = Hourly Rate × Hours per Day. A common contractor day rate for a £500/day contract: £500 ÷ 8 hours = £62.50/hour. Use the Contractor vs Permanent calculator to compare contract vs employed income after tax.
What is the UK National Living Wage in 2025?
From April 2025, the National Living Wage (for workers aged 21 and over) is £12.21 per hour. This equates to £23,810 per year based on a 37.5-hour week over 52 weeks. The rate for workers aged 18–20 is £10.00/hour, and for under-18s it is £7.55/hour.
How do I convert a salary to an hourly rate for freelance pricing?
A common rule of thumb for UK freelancers is to divide their desired annual salary by 1,000 to get an approximate hourly rate that accounts for unpaid time (admin, holidays, gaps between projects). So a £50,000 target income suggests roughly £50/hour. This is a rough guide — always account for your actual billable hours, business costs, and self-employed tax and NI obligations.
How does IR35 affect hourly contractors?
IR35 is HMRC's off-payroll working rules. If a contractor's engagement is deemed to be "inside IR35", their income is treated as employment income — subject to income tax and NI in the same way as a salaried employee. This significantly reduces the net hourly rate compared to operating via a limited company outside IR35. A £500/day rate outside IR35 might yield an equivalent take-home of £350-£380/day, while inside IR35 it could be closer to £300/day after all deductions.
How many billable days can a contractor realistically expect per year?
A UK contractor typically works around 220-230 days per year after subtracting weekends (104 days), bank holidays (8 days), and holidays (20-25 days). Additional downtime for sick leave, bench time between contracts, business development, and CPD (continuing professional development) typically reduces billable days to 200-210. Using 220 days is a reasonable planning assumption for an established contractor with good client relationships.
Should I quote a daily rate or hourly rate as a contractor?
Daily rates are more common in UK IT, finance, and professional contracting. A standard day is typically 7.5-8 hours. Hourly rates are more common in trades, creative work, and part-time arrangements. When converting, agree the working hours per day upfront to avoid disputes. If you work extended hours on a day rate, this reduces your effective hourly rate — some contractors prefer hourly billing for this reason.
How much should I set aside for tax as a self-employed contractor?
As a self-employed contractor or limited company director, tax is not deducted at source. Set aside 25-30% of income for income tax, NI, and corporation tax. A practical approach is to transfer 25-30% of every invoice payment into a separate savings account earmarked for tax. Self-employed workers pay income tax and Class 4 NI through Self Assessment — payments are due in January (balance) and July (payment on account). Limited company directors should plan for corporation tax, income tax on salary and dividends, and employer NI.