To turn an hourly rate into a yearly salary, multiply the rate by the hours you work each week, then by the number of weeks you are paid. A £15 hourly rate on a 37.5-hour week for 52 weeks comes to £29,250 a year before tax. Overtime is worked out the same way, except the extra hours are paid at a higher rate, such as time and a half.
The hourly rate to salary formula
The calculation has three ingredients: your hourly rate, your weekly hours and the number of weeks you are paid.
- Weekly pay = hourly rate × hours per week
- Yearly pay = weekly pay × weeks per year
- Monthly pay = yearly pay ÷ 12
Most people use 52 weeks. If you work fewer weeks (term-time contracts, for example), use the weeks you are actually paid. Paid holiday is normally part of those 52 weeks, so you do not need to deduct it separately from a standard employment contract.
Worked example: £15 an hour
Using the Hourly rate to salary tool with 37.5 hours a week over 52 weeks:
| Period | Gross pay |
|---|---|
| Per hour | £15.00 |
| Per day (5 days) | £112.50 |
| Per week | £562.50 |
| Per month | £2,437.50 |
| Per year | £29,250.00 |
These are gross figures. To see what lands in your account, follow the steps in How to work out your take-home pay from a UK salary.
Working backwards from a salary
Divide the yearly salary by the weeks you work, then by your weekly hours. A £30,000 salary on 37.5 hours a week for 52 weeks is £576.92 a week, or £15.38 an hour. The same maths shows why two jobs with the same salary can pay very different hourly rates: a 45-hour week at £30,000 is a lower hourly rate than a 37.5-hour week.
Remember that a salary quoted as “£30,000” is the gross figure. Income tax and National Insurance come off afterwards, as explained in UK income tax explained: bands, allowance and how it's worked out.
How overtime pay works
Overtime is any paid work beyond your normal contracted hours. The usual method is to multiply your hourly rate by an overtime multiplier, then by the extra hours.
Common multipliers are time and a quarter (x1.25), time and a half (x1.5), double time (x2), two and a half times (x2.5) and triple time (x3). Which one applies is set by your contract or employer policy.
Example: you earn £14 an hour, work your normal 37.5 hours and add 6 hours of overtime at time and a half.
- Overtime rate: £14 × 1.5 = £21.00 an hour
- Normal pay: 37.5 × £14 = £525.00
- Overtime pay: 6 × £21 = £126.00
- Total for the week: £651.00 (about 19.4% of it from overtime)
Note: This is general information, not financial or legal advice. In the UK there is no general legal right to a higher overtime rate, so check your contract, and check how overtime affects holiday pay with your employer or ACAS.
Why overtime can feel smaller than expected
Overtime is added to your pay for the period and taxed along with it. It does not usually get taxed at a special rate, but a larger pay packet can push part of your income into a higher band over a year. That is why a big overtime week sometimes looks lighter after tax than you hoped. The tax maths is covered in UK income tax explained: bands, allowance and how it's worked out.
Checking an hourly rate against a job offer
When comparing offers, convert everything to the same basis. A job paying £15 an hour for 37.5 hours is not the same as one paying £15.50 for 32 hours, even though the second has the higher rate. Multiply out to a yearly figure, then compare after tax. Look too at unpaid breaks, paid holiday, pension contributions and whether overtime is guaranteed, because these change the real value of the job.
If your hours vary week to week, use an average over a few months rather than your best week. Zero-hours and shift workers can use the weekly figure as a building block and multiply by the weeks they expect to work.
Try the calculator
Use Hourly rate to salary to convert between hourly pay and salary, and Overtime pay to see the total for a week with extra hours. Both give estimates based on the figures you enter.
Open the free Hourly rate to salary
Frequently asked questions
How many working hours are in a year?
On a 37.5-hour week over 52 weeks it is 1,950 paid hours. On a 40-hour week it is 2,080. Use your own contracted hours for the best result.
Is the monthly figure just the weekly figure times four?
No. Four weeks is 48 weeks a year, so you would miss pay. Multiply the weekly figure by 52, then divide by 12.
Does overtime count towards my take-home pay?
Yes, it is part of your gross pay and is subject to income tax and National Insurance like the rest. Use a take-home calculator for the net amount.
Do I have to be paid time and a half for overtime?
Not as a general legal rule in the UK. Your contract or company policy decides the rate, so check your paperwork.