How to Use the Hourly to Annual Salary Calculator UK
You've been offered a new job at £18 an hour but the salary sounds less impressive when you try to work out the yearly figure in your head. This calculator is designed to give you an instant, accurate conversion from hourly rate to annual salary — whether you're comparing job offers, negotiating a pay rise, or setting freelance day rates.
Start by entering your hourly rate — this is your gross pay per hour before any tax or National Insurance deductions. Next, enter your average hours per week (most full-time roles are 37.5 or 40 hours; part-time workers should enter their actual contracted hours). If you regularly work overtime, enter the average overtime hours per week and select your overtime rate (typically 1.5× or 2× your base rate). Finally, choose your weeks per year — the standard 52-week calculation gives a quick estimate, while the holiday-adjusted option (46.4 weeks) accounts for the 5.6 weeks of statutory paid holiday UK workers are entitled to.
Detailed Conversion Formula Breakdown
The Basic Formula
The simplest conversion from hourly to annual salary uses this formula: Annual Salary = Hourly Rate × Hours per Week × 52. For example, at £15 per hour working 37.5 hours per week: £15 × 37.5 × 52 = £29,250 per year. This gives you a quick, rough estimate.
The Holiday-Adjusted Formula
UK employees are entitled to 5.6 weeks of statutory paid holiday per year (28 days for a five-day worker). Since you're paid for holiday but not working, a more accurate calculation uses 46.4 working weeks (52 − 5.6): Annual Salary = Hourly Rate × Hours per Week × 46.4. For £15 per hour at 37.5 hours: £15 × 37.5 × 46.4 = £26,100 (base working pay), plus £15 × 37.5 × 5.6 = £3,150 (holiday pay) = £29,250 total. The annual figure is the same — the breakdown just shows you how much of it comes from working weeks versus holiday pay.
Including Overtime
If you regularly work overtime, add it to your calculation: Overtime Annual = (Hourly Rate × Overtime Multiplier × Overtime Hours per Week) × 52. For example, 5 hours of overtime per week at 1.5× on a £15/hour rate: (£15 × 1.5 × 5) × 52 = £5,850 per year on top of your base salary.
Real-Life Examples
Example 1 — Full-Time Employee, No Overtime
Sarah works 37.5 hours per week at £16 per hour. Using the standard 52-week calculation: £16 × 37.5 × 52 = £31,200 per year. Her monthly gross pay is £31,200 ÷ 12 = £2,600. She doesn't work overtime, so this is her total annual gross salary before tax and NI.
Example 2 — Part-Time Worker with Overtime
James works 25 hours per week at £14 per hour, with an average of 4 overtime hours at 1.5×. Base annual: £14 × 25 × 52 = £18,200. Overtime annual: (£14 × 1.5 × 4) × 52 = £4,368. Total annual: £22,568. His effective hourly rate (including overtime) is £22,568 ÷ (25 × 52 + 4 × 52) = £14.93.
Example 3 — Holiday-Adjusted Comparison
Tom is comparing a salaried role at £30,000 to an hourly role at £15/hour for 37.5 hours/week. The salaried role includes paid holiday. The hourly role using holiday-adjusted weeks: £15 × 37.5 × 46.4 = £26,100 base + £3,150 holiday pay = £29,250 total. The salaried role pays more, plus offers pension contributions and sick pay — useful context when Tom negotiates his contract.
Key Things to Know About Hourly to Annual Salary Conversion in 2026/27
- National Living Wage: £12.71 per hour for workers aged 21 and over (from April 2026). Use this as your baseline — any hourly role must pay at least this amount.
- Statutory Holiday Entitlement: 5.6 weeks (28 days for a five-day worker). If your hourly rate includes "rolled-up" holiday pay (12.07% added to each pay packet), your base hourly rate already covers this — no need to adjust weeks.
- Standard working week: Most full-time contracts use 37.5 or 40 hours. Part-time workers should use their actual contracted hours. The legal maximum average is 48 hours per week under the Working Time Regulations (unless you opt out).
- Overtime rules: There is no statutory right to overtime pay in the UK. Check your employment contract — most specify time-and-a-half (1.5×) or double-time (2×) for hours beyond your contracted week.
- Minimum wage increase: The National Living Wage rose from £12.21 to £12.71 in April 2026 (a 4.1% increase), with the 18–20 rate up 8.5% to £10.85 — significantly affecting annual salary calculations for lower-paid workers.
Common Mistakes People Make
- Multiplying by 52 without considering holiday. Most people assume they work 52 weeks a year, but statutory holiday means you're paid for 52 weeks while working 46.4. The total annual pay is the same, but the breakdown matters when comparing salaried vs hourly roles.
- Forgetting unpaid breaks. Your contract might say "40 hours per week" but include 30 minutes unpaid lunch each day. That's 2.5 unpaid hours per week. Always use your actual paid hours, not your total time at work.
- Ignoring overtime in base salary comparisons. If you compare a role with guaranteed overtime to one without, include the overtime in your annual figure. A £12/hour role with 10 hours overtime could pay more than a £15/hour role with none.
- Confusing gross and net pay. Your annual gross salary can be 20–35% higher than what actually lands in your bank account after deductions. Use the Income Tax Calculator UK at TheMetricApp.com to find your take-home figure.
Tips to Get the Best Result
Use the holiday-adjusted calculation for job comparisons.When comparing an hourly role to a salaried position, always use the 46.4-week calculation on the hourly side if holiday isn't paid separately. Salaried employees get paid holiday as standard — your comparison should reflect that.
Track your overtime for three months. If overtime is variable, don't guess — look at your last 12 weeks of payslips and average the overtime hours. A single busy week can inflate your expectations. Use the Hourly to Annual Salary Calculator UK at TheMetricApp.com to model different overtime scenarios.
Check your contract for the overtime rate. Some employers pay 1.5× for weekday overtime but 2× for weekends and bank holidays. If you consistently work different types of overtime, calculate each separately for a more accurate annual figure.
Pair with a tax calculator. Once you have your annual gross salary, run it through the Income Tax Calculator UKto see how much you'll actually take home after HMRC deductions. The difference can be eye-opening.
Data Sources & Methodology
Our Hourly to Annual Salary Calculator UK uses official UK employment legislation and current minimum wage rates. All figures are verified as of July 2026.
- National Living Wage: £12.71 per hour (21+) from GOV.UK Minimum Wage Rates. Effective April 2026.
- Statutory Holiday Entitlement: 5.6 weeks (28 days) per the GOV.UK Holiday Entitlement Guide.
- Working Time Regulations: Maximum 48-hour week from GOV.UK Working Hours.
How We Calculate: Base annual salary = Hourly Rate × Weekly Hours × Weeks per Year. Overtime = (Hourly Rate × Overtime Multiplier × Overtime Hours) × Weeks per Year. Holiday pay = Base weekly pay × Holiday weeks (when using holiday-adjusted mode). Effective hourly rate = Total annual pay ÷ (Total hours worked). The standard 52-week calculation gives a quick estimate; the 46.4-week option accounts for 5.6 weeks of statutory paid holiday. These are gross figures — use the Income Tax Calculator UK to estimate your net take-home pay after HMRC deductions.
Frequently Asked Questions
Q: How do I convert my hourly rate to an annual salary in the UK?
A: Multiply your hourly rate by your weekly hours, then by 52 weeks. For example, £15 per hour × 37.5 hours × 52 weeks = £29,250 per year. For a more accurate figure that accounts for statutory holiday, use 46.4 working weeks instead of 52.
Q: What is £15 an hour annually in the UK?
A: At £15 per hour working 37.5 hours per week for 52 weeks, your annual gross salary is £29,250. This works out to approximately £2,438 per month before tax and National Insurance. After deductions, your take-home pay would be roughly £22,000–£23,000 depending on your tax code.
Q: How many weeks per year do UK workers actually work?
A: UK employees are entitled to 5.6 weeks of statutory paid holiday per year (28 days for a five-day worker). This means you're paid for 52 weeks but typically work 46.4 weeks (52 minus 5.6). Some employers offer more holiday as a benefit, which reduces working weeks further.
Q: What is the difference between National Minimum Wage and National Living Wage?
A: The National Living Wage (£12.71 for ages 21+ from April 2026) is the statutory legal minimum for workers aged 21 and over. The National Minimum Wage refers to the lower statutory rates for younger workers — £10.85 for ages 18–20 and £8.00 for under-18s and apprentices. Separately, the Living Wage Foundation publishes a higher voluntary "real Living Wage" that some employers choose to pay, but only the statutory rates are legally required.
Q: Does the hourly to annual salary calculation include overtime?
A: The standard calculation uses your base hourly rate and contracted hours. If you regularly work overtime, add your average overtime hours at the appropriate rate (typically 1.5× or 2× your base rate) to get your true annual earnings. Use TheMetricApp.com for an instant, accurate result.
📖 Related Reading
For detailed UK salary conversion strategies and real-world examples comparing hourly vs salaried roles, read our full guide: Hourly to Annual Salary Calculator UK 2026 Guide. This companion article covers contract vs permanent comparisons, minimum wage impact analysis, and salary negotiation tips.
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