How to convert an hourly rate into an annual salary (and back again)
Job adverts switch between hourly rates and annual salaries all the time, which makes it hard to compare offers. The conversion is simple once you know the sum.
Hourly to annual
Multiply your hourly rate by the hours you work each week, then by 52:
Annual salary = hourly rate × hours per week × 52
For example, £15 an hour on a 37.5-hour week is £15 × 37.5 × 52 = £29,250 a year.
Annual to hourly
Do the same sum in reverse. Divide the salary by 52, then by your weekly hours. A £35,000 salary on 37.5 hours a week is £35,000 ÷ 52 ÷ 37.5 = £17.95 an hour.
Common hourly rates after tax
Here's what common rates are worth on a 37.5-hour week, after income tax and National Insurance in 2026/27 (England, Wales and Northern Ireland, standard tax code, no pension).
| Hourly rate | Annual salary | Take-home a year | A month |
|---|---|---|---|
| £12.50 | £24,375 | £21,070 | £1,756 |
| £15.00 | £29,250 | £24,580 | £2,048 |
| £17.50 | £34,125 | £28,090 | £2,341 |
| £20.00 | £39,000 | £31,600 | £2,633 |
| £25.00 | £48,750 | £38,620 | £3,218 |
| £30.00 | £58,500 | £44,487 | £3,707 |
Mistakes to avoid
Using the wrong hours. Full-time contracts vary between 35 and 40 hours a week. Check your contract, because 40 hours instead of 37.5 changes the annual figure by almost 7%.
Forgetting holiday pay. Salaried staff are paid through their holidays, so the ×52 sum is right for them. If you're paid hourly and holiday pay is added on top, or rolled into your rate, compare carefully.
Comparing with contractor day rates. A self-employed day rate has to cover unpaid holidays, sick days and gaps between work, so it isn't directly comparable with an employee's hourly rate.
Work it out properly
Once you have the annual figure, put it into the take-home pay calculator to see what you'd keep after tax, pension and student loan.