Banking

Salary to Hourly Rate Calculator — Convert Your Pay

How to convert annual salary to hourly rate and vice versa. Formulas, examples, and things to consider when comparing job offers in the UK.

Converting between salary and hourly rate helps you compare job offers and understand your true pay. Here’s how to calculate it.

The Basic Formulas

Salary to Hourly

Hourly Rate = Annual Salary ÷ Working Hours Per Year

Hourly to Salary

Annual Salary = Hourly Rate × Working Hours Per Year

Standard Working Hours (UK)

Full-Time Hours Per Week

Common Contract Hours/Week
Standard full-time 37.5
Full-time (some sectors) 40
Part-time Varies
Compressed hours Same total, fewer days

Working Hours Per Year

Contract Calculation Annual Hours
37.5 hrs/week 37.5 × 52 1,950
40 hrs/week 40 × 52 2,080
35 hrs/week 35 × 52 1,820

Note: These are gross figures before deducting holiday.

Adjusting for Paid Holiday

UK Minimum Details
28 days Including bank holidays
208 hours For 37.5-hour week
Net working hours 1,950 - 208 = 1,742

Most salary calculations use the gross figure (1,950 for 37.5-hour week) as you’re paid for holidays too.

Salary to Hourly Conversion Table

Based on 37.5-Hour Week (1,950 hours/year)

Annual Salary Hourly Rate Daily Rate
£15,000 £7.69 £57.69
£18,000 £9.23 £69.23
£20,000 £10.26 £76.92
£22,000 £11.28 £84.62
£25,000 £12.82 £96.15
£28,000 £14.36 £107.69
£30,000 £15.38 £115.38
£32,000 £16.41 £123.08
£35,000 £17.95 £134.62
£38,000 £19.49 £146.15
£40,000 £20.51 £153.85
£45,000 £23.08 £173.08
£50,000 £25.64 £192.31
£55,000 £28.21 £211.54
£60,000 £30.77 £230.77
£70,000 £35.90 £269.23
£80,000 £41.03 £307.69
£100,000 £51.28 £384.62

Based on 40-Hour Week (2,080 hours/year)

Annual Salary Hourly Rate Daily Rate
£20,000 £9.62 £76.92
£25,000 £12.02 £96.15
£30,000 £14.42 £115.38
£35,000 £16.83 £134.62
£40,000 £19.23 £153.85
£50,000 £24.04 £192.31
£60,000 £28.85 £230.77

Hourly to Salary Conversion Table

Based on 37.5-Hour Week (1,950 hours/year)

Hourly Rate Annual Salary Monthly Gross
£10.00 £19,500 £1,625
£11.00 £21,450 £1,788
£12.00 £23,400 £1,950
£13.00 £25,350 £2,113
£14.00 £27,300 £2,275
£15.00 £29,250 £2,438
£16.00 £31,200 £2,600
£17.00 £33,150 £2,763
£18.00 £35,100 £2,925
£19.00 £37,050 £3,088
£20.00 £39,000 £3,250
£22.00 £42,900 £3,575
£25.00 £48,750 £4,063
£30.00 £58,500 £4,875
£35.00 £68,250 £5,688
£40.00 £78,000 £6,500
£50.00 £97,500 £8,125

National Living Wage Comparison

2025/26 Rates

Age Group Hourly Rate Annual (37.5 hrs)
21 and over £12.21 £23,810
18-20 £10.00 £19,500
Under 18 £7.55 £14,723
Apprentice £7.55 £14,723

UK Median and Average Salaries

For Comparison (2025 Estimates)

Measure Annual Hourly (37.5hrs)
UK median ~£29,000 ~£14.87
UK mean (average) ~£35,000 ~£17.95
London median ~£40,000 ~£20.51
Top 10% £60,000+ £30.77+
Top 1% £150,000+ £76.92+

Working Time Variations

Part-Time Calculations

Weekly Hours Annual Hours £30,000 Equiv. Rate
16 832 £36.06
20 1,040 £28.85
25 1,300 £23.08
30 1,560 £19.23
37.5 (FT) 1,950 £15.38

What Part-Time Pay Looks Like

Hourly Rate 16 hrs/week 25 hrs/week
£12 £9,984 £15,600
£15 £12,480 £19,500
£18 £14,976 £23,400
£20 £16,640 £26,000

Agency and Contractor Rates

Loading Considerations

Factor What It Covers
No paid holiday Add ~12%
No sick pay Risk allowance
No pension Self-fund retirement
No benefits Health insurance, etc.
Admin costs Invoicing, accounting
Typical uplift 30-50% on equivalent hourly

Equivalent Comparison

Salary (Employed) Equiv. Day Rate (Contractor)
£30,000 £200-£250
£40,000 £275-£325
£50,000 £340-£400
£60,000 £400-£475
£80,000 £525-£625

*Contractor day rates need to cover holiday, pension, benefits, gaps between contracts.

Comparing Job Offers

Beyond the Headline Rate

Factor Consider
Pension contribution 3-15% employer contribution
Annual bonus Variable, not guaranteed
Private healthcare Worth £1,000+/year
Holiday allowance More days = more value
Working hours 37.5 vs 40 = big difference
Commuting costs Not factored in salary
Flexible working Has value

Example Comparison

Factor Job A Job B
Salary £35,000 £32,000
Pension (employer) 3% (£1,050) 10% (£3,200)
Bonus None £2,000 typical
Healthcare No Yes (£1,000 value)
Hours/week 40 37.5
Hourly rate £16.83 £17.07
Total package ~£36,050 ~£38,200

Job B looks lower but is actually worth more.

Quick Calculation Methods

Rough Mental Maths

Shortcut Formula
Salary to hourly Divide salary by 2,000
Hourly to salary Multiply rate by 2,000
Daily rate Hourly × 7.5
Weekly Daily × 5

Examples

Question Quick Calculation Answer
£50,000 hourly £50,000 ÷ 2,000 ~£25/hr
£20/hr annual £20 × 2,000 ~£40,000
£25/hr daily £25 × 7.5 ~£188/day

Summary Tables

Conversion Formula
Salary → Hourly Salary ÷ 1,950 (37.5hr) or ÷ 2,080 (40hr)
Hourly → Salary Rate × 1,950 or × 2,080
Hourly → Daily Rate × hours/day
Daily → Annual Day rate × 260 working days
UK Benchmarks 2025 Hourly Annual
National Living Wage £12.21 £23,810
UK Median ~£14.87 ~£29,000
Good salary £20+ £40,000+
High income £40+ £80,000+