An hourly rate,
as a real salary
Turn what you earn an hour into gross pay a year, a month and a week, then see what actually lands in your account after tax and National Insurance.
£35,100
£18.00 an hour for 37.5 hours a week over 52 paid weeks.
Pence are fine: enter 18.75 for eighteen pounds seventy-five an hour.
Your contracted hours, before any overtime.
Use 52 weeks when your holiday is paid, which is the usual employee arrangement.
Share of gross pay going into a workplace pension before tax.
Gross a month
£2,925.00
Gross a week
£675.00
- Take-home a year
- £28,791.60
- A month
- £2,399.30
- A week
- £553.68
- Income tax
- £4,506.00
- National Insurance
- £1,802.40
Gross a month is the annual figure divided by twelve, so it is the same every month even though the number of working days is not. Figures use 2026/27 UK rates.
Your tax position on this rate
You are £15,170 below the higher-rate threshold.
Your next £1 is taxed at an effective 28 percent (20 percent income tax plus 8 percent NI).
A £1,000 pay rise would add £720 to your take-home and £280 to your deductions.
Also check: is your PAYE tax code correct?
Variable hours and mid-year job changes are where wrong tax codes hide. Check yours free in 60 seconds.
- Annualised salary
- An hourly rate turned into the yearly figure a salaried job would need to pay you the same money. It is the hourly rate multiplied by your hours a week and by the number of weeks a year you are paid for.
Turning an hourly rate into a salary
The arithmetic is one line: hourly rate, times hours a week, times paid weeks a year. At £18.00 an hour for 37.5 hours over 52 weeks that is £35,100 of gross pay a year. Everything after that is the same PAYE calculation any salaried employee gets.
The number that decides the answer is the one nobody states in the advert: how many weeks you are actually paid for. An employee with paid holiday is paid for all 52 weeks, because holiday pay is still pay. Somebody on a rate with no holiday entitlement is paid only for the weeks worked, and the honest comparison uses 46.4, the year less the 5.6 weeks of statutory leave.
| Hours a week | Gross a year at £18.00, 52 weeks | Gross a year, 46.4 weeks |
|---|---|---|
| 20 | £18,720 | £16,704 |
| 30 | £28,080 | £25,056 |
| 37.5 | £35,100 | £31,320 |
| 40 | £37,440 | £33,408 |
Why your monthly pay is not four weeks of hours
A year has 52 weeks and twelve months, and 52 does not divide by twelve. A month is closer to 4.3 weeks than to four, so multiplying a weekly figure by four understates monthly pay by roughly a week every quarter. Salaried pay solves this by dividing the annual figure by twelve and paying the same amount every month, whatever the calendar did.
That is exactly what the calculator above shows. The monthly gross is the annual figure over twelve, and the monthly take-home is the annual take-home over twelve. If you are paid weekly or four-weekly your actual payslips will vary a little around those numbers while the annual total stays the same.
What the annual figure changes about your tax
PAYE is an annual system worn one payslip at a time. The Personal Allowance of £12,570 and the £50,270 higher-rate threshold are yearly figures that your tax code spreads evenly across the year, which is why a steady salary and an irregular hourly income with the same annual total end up at the same place by April.
National Insurance does not work that way. It is charged on each pay period separately, on earnings above £12,570 a year spread across your pay periods, and it is never reconciled at the end of the year. A month of heavy overtime therefore costs more NI than the same money spread evenly, and you do not get it back. That is the one real difference between hourly work and a salary of the same size.
Overtime and shift premiums are ordinary pay. Add them to your average weekly hours if you work them regularly, and leave them out if you do not, because the calculator annualises whatever pattern you type into it.
Comparing an hourly job with a salaried offer
- Check the weeks, then the rate. An hourly rate with no paid holiday needs to be around 12.1 per cent higher to match a salaried offer, before anything else is counted.
- Sick pay and notice. A salary usually carries contractual sick pay and a longer notice period. Hourly work often carries neither.
- Pension. Auto enrolment is assessed on actual earnings each pay period, so variable hours can move you in and out of a scheme across the year.
- Guaranteed hours. An annualised figure assumes the hours are there every week. If they are not, the salary equivalent is the ceiling rather than the expectation.
- Annual gross is the hourly rate times weekly hours times paid weeks, and the weeks are the number that decides the answer.
- Use 52 weeks when holiday is paid and 46.4 when it is not.
- Monthly pay is the annual figure over twelve, not four weeks of hours.
- Income tax settles across the year but National Insurance is charged pay period by pay period, so uneven hours cost slightly more NI.
Working part-time hours in a full-time role?
If the job advertises a full-time salary rather than an hourly rate, the pro-rata calculator scales it to your hours and runs the same PAYE breakdown.
Pro-rata salary calculatorFrequently asked questions
Earn outside PAYE too?
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