Hourly to Salary Calculator: Wage Conversion & Take-Home Pay
Paid by the hour, day, or shift? Convert your hourly rate into exact annual gross earnings and see your net take-home pay per hour, day, week, month, and year after statutory UK Income Tax, National Insurance, and pension deductions.
Statutory Compliance: Reviewed and verified against HMRC 2026/27 PAYE specifications (HMRC PAYE Tax Tables, NIC Rates & Thresholds). Last updated March 2026.
Hourly Wage & Schedule Details
| Pay Period | Gross Pay | Income Tax | National Insurance | Pension | Student Loan | Net Take-Home |
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How to Use This Calculator (Step-by-Step)
Follow these steps to convert your hourly or shift wage into exact annual, monthly, and weekly take-home pay:
- Step 1 — Enter Your Hourly Pay Rate: Type in your standard hourly wage (or click one of the quick preset buttons for Minimum Wage, Real Living Wage, or London Living Wage).
- Step 2 — Set Your Working Hours & Days: Specify your contracted weekly working hours (e.g. 37.5h or 40h) and working days per week (e.g. 5 days).
- Step 3 — Adjust Paid Weeks per Year: Keep as 52 weeks if you receive standard paid annual leave. If you are a contractor or freelancer who takes unpaid holiday, reduce this to 46–48 weeks.
- Step 4 — Add Overtime Hours & Multiplier (Optional): If you work regular overtime, enter the hours and select your premium multiplier (e.g. 1.5x for time-and-a-half or 2.0x for double time).
- Step 5 — Check Your Effective Net Hourly Rate: Review the period breakdown table to see your exact take-home pay across Hourly, Daily, Weekly, Monthly, and Annual periods after Income Tax and National Insurance.
Understanding Hourly Rates, Statutory Deductions & Holiday Pay
Working on an hourly wage, zero-hours contract, or agency shift pattern requires understanding how weekly earnings translate into annual taxable income. While annual salaried employees receive consistent monthly pay regardless of calendar length, hourly workers experience fluctuating pay based on hours, statutory holiday accrual, and overtime.
1. Calculating Annual Gross from an Hourly Rate
To convert an hourly wage to an annual salary, multiply your standard hourly rate by your weekly contracted hours, then multiply by the number of paid weeks in the year:
- Full-Time Employed (52 weeks): Under standard permanent employment contracts, you receive 5.6 weeks (28 days) of statutory paid annual leave. Therefore, multiply your weekly gross by 52 weeks.
- Contractors / Freelancers (46 to 48 weeks): Agency workers and contractors who do not receive paid holiday through an umbrella company should multiply by 46.4 weeks (52 weeks minus 5.6 weeks of unpaid leave) to accurately estimate realistic annual earnings.
2. How Overtime Is Taxed
Many shift workers believe overtime is taxed at a penalizing flat rate. In reality, overtime pay is treated as ordinary taxable income. In the specific calendar week or month that overtime is paid, PAYE cumulative withholding software may temporarily assume you will sustain that higher rate year-round, deducting 40% tax or 2% NI on the upper slice. Any overwithholding is automatically rebalanced in subsequent pay periods across the tax year.
3. Statutory Minimum Wage Rates (2026/27)
By UK law, employers must pay at least the National Living Wage / National Minimum Wage. Ensure your contracted rate complies with current statutory floors:
- Aged 21 and over (National Living Wage): £12.21 per hour.
- Aged 18 to 20: £10.00 per hour.
- Under 18 / Apprentices: £7.55 per hour.
- Real Living Wage (Voluntary accreditation): £12.60 UK wide (£13.85 in London).
Review official minimum wage rates and enforcement rules on GOV.UK: National Minimum Wage and Living Wage rates.