Finance

Hourly Rate to Annual Salary 2026/27: Gross & Take-Home Pay

Convert hourly pay to annual salary and understand full-time, part-time, and 2026/27 take-home assumptions.

The basic hourly to salary formula

To convert hourly pay to annual salary, multiply the hourly rate by hours per week, then multiply by weeks per year. For example, 15 per hour for 37.5 hours per week over 52 weeks gives 29,250 gross annual pay. If you work fewer weeks or unpaid time off, use the weeks you expect to be paid for.

Use the AtlasPeak Hourly to Salary Calculator to enter hourly rate, hours per week, and weeks per year. It shows weekly, monthly, and annual gross pay, plus an estimated take-home figure after tax and NI.

Full-time and part-time assumptions

Full-time does not always mean the same number of hours. Some roles use 35 hours, others 37.5, 40, or shift patterns with averaged hours. Part-time workers may have fixed days, variable rotas, or overtime. The calculation should match paid hours, not just time spent around work.

Weeks per year is also important. Employees with paid holiday can usually use 52 weeks because holiday pay is included. Contractors, freelancers, seasonal workers, and people with unpaid breaks should use a lower figure if they will not be paid all year.

Gross salary and take-home pay

The annual salary figure is gross pay before deductions. Take-home pay depends on income tax, employee National Insurance, pension contributions, student loans, benefits, and any salary sacrifice. Two people on the same hourly rate can have different net pay if their hours, tax code, pension choices, or deductions differ.

For planning rent, bills, debt payments, and savings, use monthly take-home pay rather than annual gross pay. Annual pay is useful for comparing jobs; monthly net pay is what supports everyday decisions.

Overtime and variable hours

If overtime is regular and reliable, include a realistic average. If it is occasional, calculate base pay first and treat overtime as extra. This avoids building fixed commitments around income that may not arrive. For shift premiums, night rates, or weekend enhancements, calculate each pay rate separately and combine the totals.

When comparing an hourly role with a salaried role, include unpaid breaks, commute costs, overtime rules, pension contributions, and paid leave. A higher hourly rate may be less attractive if hours are uncertain or benefits are weaker.

Use the number for decisions

Hourly conversion is useful when negotiating pay, comparing roles, checking affordability, or deciding whether extra hours are worth it. It also helps employers and employees discuss pay in the same language. A role advertised hourly can be compared with a salary offer once the hours and paid weeks are clear.

Run the Hourly to Salary Calculator again whenever your rota, rate, or paid weeks change. Small changes in hours can have a surprisingly large annual and monthly effect.

FAQ

How do you convert hourly pay to annual salary?

Multiply hourly rate by hours per week, then multiply by weeks worked per year. For a full-year estimate, many people use 52 weeks.

Should I use paid holiday in an hourly salary calculation?

If holiday is paid, include those weeks. If you are self-employed or unpaid during time off, use the number of weeks you expect to work.

Is hourly pay before or after tax?

Hourly rates are normally gross before tax. Take-home pay depends on annual earnings, income tax, National Insurance, pensions, and deductions.

Try the calculator

Put the guide into practice with the Hourly to Salary Calculator and check your own numbers.

Use Hourly to Salary Calculator