Salary to hourly calculator

Convert an annual salary to an hourly rate using the hours worked each week and 52 weeks.

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How the formula works

Hourly rate = annual salary ÷ (hours per week × 52). The 52 is the number of weeks used for a planning year. It does not remove holiday weeks.

What the number means

The rate is the salary spread across every contracted hour in that 52-week year. A person on £45,000 for 37.5 hours a week is not paid £45,000 ÷ 37.5. The week is multiplied by 52 first, which is 1,950 hours. Holiday you still get paid for is already inside the salary, so do not subtract it again unless the salary itself excludes paid leave.

Worked examples

A 37.5-hour week

£45,000 a year. 37.5 hours × 52 = 1,950 hours. 45,000 ÷ 1,950.

£23.08 an hour

A 40-hour week

The same £45,000 over 40 × 52 = 2,080 hours. 45,000 ÷ 2,080.

£21.63 an hour

Questions

Why divide by 52 weeks?

A planning year is 52 weeks. Some contracts use 52.14, or they use the hours on the contract. Use the number in the contract if it names one. Changing 37.5 to 40 moves the rate more than the difference between 52 and 52.14.

Should I remove paid holiday first?

Only if the annual figure is unpaid-time pay. A salary that continues during holiday already includes those hours. Dividing by hours actually worked, after removing holiday, produces a higher rate than the contract.

Does this include overtime?

No. This is the straight hourly rate from the salary. Overtime is extra hours times this rate times whatever multiplier the policy uses.

See also

A planning figure for a conversation. It is not a payslip, a filing, or legal advice.