Salary converter — hourly to annual and back
Enter a rate of pay on any basis and see what it works out to on every other basis, using your own hours per week, days per week and paid weeks per year. It is useful for comparing a contract day rate with a salaried job, or checking what an hourly rate is worth over a year. This is gross pay only — no income tax, national insurance or pension deductions are applied.
How to use the Salary Calculator
- Enter the amount and choose the basis it is paid on.
- Set your hours and days per week.
- Set paid weeks per year — 52 for a salaried job, fewer if you take unpaid time off.
- Press Convert pay to see every equivalent figure.
How the conversion works
Everything is routed through an annual figure and then divided back out:
| From | To annual |
|---|---|
| Hourly | rate × hours per week × paid weeks |
| Daily | rate × days per week × paid weeks |
| Weekly | rate × paid weeks |
| Monthly | rate × 12 |
Worked example: £18.50 an hour, 37.5 hours a week, 52 paid weeks = £36,075 a year. That is £3,006.25 a month, £693.75 a week and £138.75 a day on a five-day week.
The month trap
A month is not four weeks. There are 52.18 weeks in a year, so a month averages 4.348 weeks. Multiplying a weekly wage by four understates monthly pay by about 8%: £693.75 × 4 = £2,775, against the true £3,006.25. Always go through the annual figure. The same applies in reverse — dividing an annual salary by 52 and multiplying by 4 is not a month's pay.
Paid weeks, holiday and contractors
An employee on an annual salary is normally paid for all 52 weeks, with paid holiday already included — in the UK the statutory minimum is 5.6 weeks a year, which for a five-day week is 28 days including bank holidays. Leave the paid-weeks field at 52 for that case. A contractor or freelancer who is not paid when not working should reduce it: someone taking five weeks off sets 47, and the same day rate then produces a very different annual figure.
This is exactly why a contract day rate is not comparable with a salary at face value. A £400 day rate over 47 paid weeks is £94,000 gross, but there is no employer pension contribution, no sick pay, no paid holiday and usually no notice period. Comparing like with like means adding the value of those benefits to the salaried side before judging.
What is not included
No tax is calculated here. Income tax, national insurance or social security, student loan repayments, pension contributions and salary sacrifice all come off the figures shown, and they depend on your country, your tax code and your circumstances. Overtime, bonuses, shift premiums and commission are not modelled either — fold them into the amount you enter if you want them counted. For take-home pay, use your national tax authority's own calculator.
Frequently asked questions
How do I convert an hourly rate to an annual salary?
Multiply the hourly rate by your hours per week and then by the number of paid weeks in your year — usually 52. At £18.50 for 37.5 hours that is £36,075.
Why is a month not four weeks?
A year has 52.18 weeks, so a month averages about 4.35 weeks. Multiplying weekly pay by four understates the month by roughly 8%.
Does this show take-home pay?
No. Every figure is gross, before income tax, national insurance or social security, pension and any other deduction.
How should a contractor set paid weeks?
Count only the weeks you actually invoice. If you take five weeks off unpaid, use 47 rather than 52.
Privacy
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Last updated 2026-09-23.