How do I calculate my annual salary from my hourly rate?

The standard formula is: Hourly Rate × Weekly Hours × 52. For example, £15/hr × 37.5 hours × 52 weeks = £29,250 per year.

What is the annual salary for £12.21 per hour in 2026?

Based on a standard 37.5-hour week, £12.21 per hour equates to approximately £23,810 per year before tax.

Does my hourly rate include holiday pay?

Typically, no. Statutory holiday pay is accrued on top of your worked hours, often calculated as 12.07% of your hourly pay if you are on a casual contract.

How much tax will I pay on £15 an hour?

On a £29,250 annual salary (£15/hr full-time), you will pay approximately £3,336 in Income Tax and £1,334 in National Insurance, leaving a take-home of roughly £23,515 (estimates vary with pension contributions).

How is overtime calculated on an hourly wage?

Overtime is often paid at a premium, such as 'time and a half' (1.5x your base rate) or 'double time'. Check your employment contract for specific overtime policies.

What is the 2026 National Living Wage?

For 2026, the National Living Wage is projected to be around £12.21 or higher, depending on government confirmations later in the fiscal calendar.

How do 4-week months affect my calculation?

Most months have more than 4 weeks (avg 4.33). To get a monthly average, multiply your weekly pay by 52 and divide by 12, rather than just multiplying by 4.

Hourly to Annual Salary UK

Quick Converter

Hourly Rate (£)

Hours per Week

Your Results (Estimated)

Weekly Gross: £562.50

Monthly Gross: £2,437.50

Annual Gross: £29,250.00

Annual Net (Take Home): £23,515.00

Monthly Net: £1,959.58

Calculations based on standard 2025/2026 tax codes (1257L) and Class 1 NI.

Expert Guide: Using the Hourly to Annual Salary UK 2026 Correctly

This section explains the method behind this calculator so you can trust and verify your result. For planning decisions, run at least two scenarios: your current case and a conservative case with higher costs or lower income.

How the result is calculated

The calculator applies the selected inputs in sequence, validates boundaries, and then computes outputs using the current UK rules shown on the page. If an input is missing or outside expected ranges, the tool should prompt for correction before final calculation.

How to avoid common mistakes

Check units first (annual vs monthly, gross vs net, metres vs feet, etc.).
Use realistic assumptions and compare at least two alternative scenarios.
Round only at the final step; early rounding can distort totals.

Interpretation and next step

Use this output as a decision-support estimate, then confirm with official sources or professional advice where required. For tax and payroll topics, cross-check against HMRC guidance and your latest period figures.

About the Take-Home Pay Calculator (Hourly)

Convert your hourly rate to annual take-home pay, or calculate weekly and monthly net pay after UK income tax, National Insurance and student loan deductions.

Formula: Annual gross = Hourly Rate × Hours per Week × 52 weeks; then deduct Income Tax + NI
UK minimum wage 2025/26: £12.21/hour (21+), £10.00 (18-20), £7.55 (under 18)

Frequently Asked Questions

How do I convert hourly rate to annual salary?

Multiply your hourly rate by your weekly hours, then by 52. Example: £15/hour × 37.5 hours × 52 = £29,250 gross annual salary.

What is the UK national living wage?

From April 2025, the National Living Wage is £12.21/hour for workers aged 21+. The National Minimum Wage for ages 18-20 is £10.00/hour.

How much tax do I pay on hourly work?

You pay income tax above the £12,570 personal allowance (20% basic rate up to £50,270). Employee NI is 8% on earnings £12,570-£50,270 and 2% above.

Do zero-hours contract workers pay tax?

Yes — all workers pay income tax and NI on their earnings, regardless of contract type. Zero-hours workers are taxed in the same way as regular employees.