Hourly to Annual Salary Calculator 2026-27
Converting between hourly and annual — for job comparisons or budgeting.
Convert your hourly wage to an annual salary equivalent in United Kingdom. Adjust for actual hours per week. Also shows monthly, weekly, and daily pay.
Based on 40hr/week, 52 weeks/year. Adjust in Standard mode for actual hours.
How to convert hourly rate to annual salary in the UK
Converting an hourly wage to annual salary involves multiplying hourly rate by the hours you work each week, then by weeks worked per year. Adjustments for tax, National Insurance, pension, and holiday affect your take-home pay.
The core formula: hourly × hours × weeks
Annual salary = Hourly rate × Hours per week × Weeks per year. Standard full-time (40hr/week, 52wk/year) = 2,080 hours/year. £20/hr × 2,080 = £41,600/year. For part-time at 20hr/week: £20 × 1,040 = £20,800/year.
Adjusting for working weeks instead of 52
If your hourly rate excludes holiday pay, use actual paid weeks (e.g., 46.4 weeks for 28 days statutory holiday). If holiday is paid separately or rolled up, use 52 weeks. Most full-time employment contracts use 52 weeks × 40 hours = 2,080 hours as the baseline.
From gross salary to take-home pay
Gross salary is before deductions. Take-home in the UK is after: Income Tax (20% basic, 40% higher, 45% additional rate), National Insurance (8% above £12,570), workplace pension auto-enrolment (8% of qualifying earnings total — at least 3% from the employer, around 5% from you), and any student loan repayments (9% above your plan's threshold).
The 2,080 hours full-time shortcut
A quick conversion used by UK recruiters: multiply hourly rate by 2,080 for a full-time annual salary. £25 × 2,080 = £52,000. This works for 40-hour weeks. For 37.5-hour weeks, use 1,950: £25 × 1,950 = £48,750.
UK hourly rate to annual salary conversion table 2026-27
Full-time at 40 hours/week, 52 weeks
| Hourly rate | Annual (gross) | Monthly (gross) | Net take-home |
|---|---|---|---|
| £10/hr | £20,800 | £1,733 | ~£18,500 |
| £12.71/hr (NLW) | £26,437 | £2,203 | ~£22,600 |
| £15/hr | £31,200 | £2,600 | ~£26,000 |
| £20/hr | £41,600 | £3,467 | ~£33,500 |
| £25/hr | £52,000 | £4,333 | ~£40,700 |
| £30/hr | £62,400 | £5,200 | ~£46,700 |
| £35/hr | £72,800 | £6,067 | ~£52,800 |
| £40/hr | £83,200 | £6,933 | ~£58,800 |
| £50/hr | £104,000 | £8,667 | ~£70,100 |
| £75/hr | £156,000 | £13,000 | ~£94,500 |
Part-time at 20 hours/week, 52 weeks
| Hourly rate | Annual (gross) | Monthly (gross) |
|---|---|---|
| £12.71/hr (NLW) | £13,218 | £1,102 |
| £15/hr | £15,600 | £1,300 |
| £20/hr | £20,800 | £1,733 |
| £25/hr | £26,000 | £2,167 |
UK National Minimum Wage and National Living Wage 2026-27
Current statutory rates by age
| Age / category | Hourly rate | Annual (full-time) |
|---|---|---|
| National Living Wage (21+) | £12.71 | £26,437 |
| 18-20 year olds | £10.85 | £22,568 |
| Under 18 | £8.00 | £16,640 |
| Apprentice (under 19, or first year) | £8.00 | £16,640 |
When minimum wage rates change
UK statutory minimum wages are recommended annually by the Low Pay Commission and change on 1 April every year. From 1 April 2026 the National Living Wage is £12.71/hr (up from £12.21). Employers must pay at least these rates — paying below is a criminal offence under the National Minimum Wage Act 1998, and HMRC can name and fine employers who underpay.
Accommodation offset and what counts as working time
If an employer provides accommodation, they can offset up to £11.10/day (£77.70/week) from minimum wage. Travel between workplaces, training time, and on-call time at the workplace all count as working time for minimum wage. Commuting does not count.
How overtime, bonuses, and shift premiums affect annual salary
Overtime rate calculations
Time-and-a-half (1.5x): £20/hr → £30/hr overtime. Double time (2x): £20/hr → £40/hr overtime. Some UK employers pay time-and-a-third (1.33x) for Saturday, double for Sunday or bank holidays. There's no statutory UK requirement to pay overtime premiums beyond the contracted rate.
Annualising overtime income
If you earn £20/hr base and regularly work 8 hours overtime at time-and-a-half: 8 × £30 × 52 = £12,480 additional gross. Combined with the £41,600 base salary: £54,080 total gross. Overtime adds taxable income like any other earnings.
Bonuses and commission
Annual bonuses are typically added to salary and taxed at your marginal rate. A £5,000 bonus on a £50,000 salary is taxed at 40% plus 2% NI = £2,100 tax. Commission payments work similarly but often come with more volatility — banks may discount commission by 50% when assessing mortgage borrowing capacity.
FAQFrequently asked questions about hourly to salary conversion
What is the difference between gross and net hourly pay?
Gross is before tax. Net (take-home) is after Income Tax, National Insurance, and any pension or student loan deductions. At £25/hr gross, a basic-rate UK taxpayer takes home approximately £17-19/hr after all deductions.
How do I compare a salary offer to my hourly rate?
Divide the annual salary by your total hours per year. £50,000 ÷ 2,080 hours = £24.04/hr. Compare to your current rate and consider benefits: pension contributions, holidays, flexible work, health insurance.
What is £25 per hour annual salary UK?
£25/hr × 40 hours × 52 weeks = £52,000 gross annual salary. Take-home is approximately £40,700/year or £3,392/month after Income Tax and National Insurance.
What does £20 per hour convert to annually?
£20/hr × 40 hours/week × 52 weeks = £41,600 gross per year. After UK tax and NI, take-home is approximately £33,100/year.
Is UK minimum wage enough to live on?
National Living Wage (£12.71/hr) = £26,437/year full-time. This is below the Real Living Wage recommended by the Living Wage Foundation (£13.45 outside London, £14.80 in London from April 2026). Living costs vary significantly by region.
Do UK employers have to pay overtime?
There is no legal requirement to pay overtime premiums (1.5x or 2x) in the UK — it depends on your employment contract. However, total pay must not fall below minimum wage when averaged over the pay period.
How does holiday pay work on a zero-hours contract?
UK zero-hours and irregular-hours workers don't get a fixed pay uplift for being on call — instead they build up paid holiday at 12.07% of the hours they work (5.6 weeks ÷ 46.4 working weeks). For leave years starting on or after 1 April 2024, an employer can pay this as "rolled-up" holiday pay: an extra 12.07% shown separately on each payslip. If a rate is quoted "inclusive of holiday pay", strip out that 12.07% before comparing it to a salaried role.
Should I use 52 weeks or fewer when converting?
If your hourly rate is paid on top of separate paid holiday, use 52 weeks — your 5.6 weeks (28 days) of leave are already paid. If you only get paid for the weeks you actually work (rolled-up holiday pay, or a genuine part-year role), use roughly 46.4 weeks so the conversion reflects unpaid time off.
Where these figures come from
Income figures on this page are drawn from HMRC (PAYE tax and National Insurance), GOV.UK (statutory rates), and the Office for National Statistics (earnings).
- Income Tax rates & Personal Allowance — GOV.UK — Income Tax rates and Personal Allowances.
- National Insurance rates — GOV.UK — National Insurance rates.
- National Minimum & Living Wage — GOV.UK — National Minimum Wage and National Living Wage rates.
- UK average earnings — ONS — Average weekly earnings.
- Student loan repayment thresholds — GOV.UK — Repaying your student loan.
Last checked: April 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.
Select the question that matches where you are right now.
Your result shows the income breakdown based on the salary, hours, or payment details you entered — using current tax rates and standard employment conditions.
Use this to compare job offers, understand your effective hourly rate, or see how a pay rise flows through to take-home pay. Adjust inputs to model different scenarios.
Not a payslip or employer commitment. Actual pay depends on your specific employment agreement, deductions, and employer calculations.
Uses current tax rates and standard employment conditions. All calculations run in your browser — no data is sent to any server.
Income calculations are driven by gross pay, tax bracket, and any salary sacrifice or deductions. The gap between gross and net widens as income rises due to progressive tax rates.
The difference between your gross salary and take-home pay reflects income tax, National Insurance, and any student loan repayments. Higher income means a larger percentage goes to tax.
For hourly and zero-hours workers, overtime rates, shift and weekend premiums, and holiday pay (12.07% of hours worked for irregular-hours staff) significantly affect effective annual income.
Salary sacrifice into a workplace pension reduces both your taxable income and the National Insurance you pay — changing the effective tax rate and take-home split.
To improve your income position, focus on reducing tax drag, negotiating better terms, or restructuring how you receive compensation.
Consider the employer pension contribution, holiday entitlement, flexible working, and salary sacrifice as part of total compensation — not just base salary.
Directing pre-tax income into a workplace or personal pension reduces your Income Tax and National Insurance bill and increases effective compensation.
Converting salary to an hourly rate (or vice versa) helps compare roles with different structures on a like-for-like basis.
Income connects to tax, pension, and budgeting decisions. Use these calculators to see the full picture.
See the full tax breakdown including National Insurance and your effective tax rate.
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