How to calculate your annual salary from your hourly rate

If you want to work out your salary or take-home and only know your hourly rate, use the Hourly Rate Calculator to get the information you need from our tax calculator:

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How to use the Hourly Wage Calculator

The hourly rate calculator will help you see what that wage works out to be. Wondering what your yearly salary is? Comparing different jobs? Enter the hourly rate in the Hourly Wage box, and the number of hours worked each week.

New! If you are earning a bonus payment one month, enter the £ value of the bonus into the bonus box for a side-by-side comparison of a normal month and a bonus month.

Find out the benefit of that overtime! Enter the number of hours, and the rate at which you will get paid. For example, for 5 hours a month at time and a half, enter 5 @ 1.5. There are two options in case you have two different overtime rates. To keep the calculations simple, overtime rates are based on a normal week of 37.5 hours.

New! If your main residence is in Scotland, tick the "Resident in Scotland" box. This will apply the Scottish rates of income tax.

If you know your tax code, enter it into the tax code box for a more accurate take-home pay calculation. If you are unsure of your tax code just leave it blank and the default code will be applied.

If you have a pension which is deducted automatically, enter the percentage rate at which this is deducted and choose the type of pension into which you are contributing. Pension contributions are estimates, click to learn more about pension contributions on The Salary calculator.

If you receive Childcare vouchers as part of a salary sacrifice scheme, enter the value of the vouchers you receive each month into the field provided. If you signed up for the voucher scheme before 6th April 2011, tick the box - this affects the amount of tax relief you are due.

Select your age range from the options displayed. If you are married, tick the "Married" box. Similarly, tick the "Blind" box if you are blind.

If you do not pay National Insurance, for example, if you are over State Pension Age, tick the "No NI" box.

New! There are now three repayment methods for Student Loans, which are known as Plan 1, Plan 2 and Postgraduate Loans. If you are repaying a student loan for a course which started before 1st September 2012, tick "Plan 1", if you are repaying a student loan for a course which started on or after 1st September 2012, tick "Plan 2". If you are repaying a loan for a postgraduate course, tick "Postgraduate".

You can now choose the tax year that you wish to calculate. By default, the 2022 / 23 tax year is applied but if you wish to see salary calculations for other years, choose from the drop-down.

When you're done, click on the "Calculate!" button, and the table on the right will display the information you requested from the tax calculator. You'll be able to see the gross salary, taxable amount, tax, national insurance and student loan repayments on annual, monthly, weekly and daily bases.

This is based on Income Tax, National Insurance and Student Loan information from April 2022. More information on tax rates here.

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Pension Contributions

If you contribute to a pension scheme by having a percentage of your salary deducted by your employer, enter the percentage into the "Pension contribution" field.

If you do not know the percentage that you contribute, you can instead choose to enter the amount, in pounds and pence, that you contribute from each payslip.

Choose the type of pension that you have, either an auto-enrolment employer pension, an other (non-auto-enrolment) employer pension, a salary sacrifice scheme, or a personal pension. For auto-enrolment pensions, the percentage contribution field only applies to your earnings between the lower and upper thresholds (£6,240 to £50,270), not your whole income.

If your pension is not auto-enrolment, you can choose whether your contribution is based on your whole gross salary, or your "Qualifying Earnings", which is the amount you earn between the auto-enrolment thresholds described in the previous paragraph. If your overtime payments or bonuses are subject to pension contributions, tick these boxes (these apply automatically to auto-enrolment pensions).

If you receive cash allowances, like a car allowance or mobile phone allowance, and this is also included in your pensionable pay, tick the "Include cash allowances" box.

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Lots of people work for an hourly wage, but sometimes you might be asked how much you make a year. The question might stop you in your tracks at first, but it's actually pretty simple to get the answer.

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   Figure out if you are paid hourly. If you receive a pay rate per hour multiplied by the number of hours worked per week, then you are paid hourly. Another term for this is a non-exempt employee. The amount of your paycheck may change each week depending on how many hours you work. If your work hours do not vary but you are still paid by the hour, then you are still considered an hourly, or non-exempt employee even though your check is the same each week.[1]

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   Determine how much you earn per hour. Your supervisor or someone in human resources can tell you how much you make per hour. If you don't want to ask, you can figure it out from your pay stub. Find where it tells you the total gross pay on your pay stub. This is how much you earned before taxes and benefits were taken out. Divide that amount by the number of hours you worked that week.

   • For example, suppose your gross pay was $200 for a week in which you worked 10 hours. Calculate . Your hourly salary is $20 per hour.

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3. 

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   Calculate your yearly pay if you work the same number of hours per week. Take your hourly salary and multiply it by the number of hours you work each week. This tells you your weekly salary. Multiply this by the number of weeks in a year, 52, to get your yearly salary.[2]

4. 

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   Find the average if you work a different amount each week. If your hours vary every week, keep track of your weekly hours for about one month. Then calculate the average number of hours you worked each week. Multiply that by 52 to find your annual salary.

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1. 

   1

   Add in overtime hours if you earn them. If you work more than 40 hours per week and you are a non-exempt employee, you must be paid overtime. This means you earn one and a half times your regular pay for any hours over 40 hours per week. If you want to figure out how overtime affects your annual salary, keep track of your overtime and regular hours for at least a month. Figure out the average number of regular and overtime hours you work and multiply to get the total for the year. Add these two amounts together to get your total estimated annual salary.

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   Make modifications for sick time, vacation, or a leave of absence. If you get paid for vacation time or when you're out sick, then you don't need to make any changes to your annual salary. But if your employer doesn't pay you when you're out on vacation or sick, then this in effect changes the number of weeks you get paid in a year. If you take 2 weeks of vacation each year, then you work only 50 weeks per year instead of 52. You need to use 50 weeks to calculate your annual salary instead of 52.

3. 

   3

   Calculate bonuses. Some companies pay bonuses at different times of the year. These are added to your regular salary. For example, your employer may give holiday bonuses, sign-on bonuses to new employees, or rewards for meeting goals. Also, sales commissions count as bonuses. If you earn bonuses, add them to your total when calculating your annual salary.[3]

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1. 

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   Figure out if you are earning enough. You have to know if your job is going to pay enough to support your lifestyle and think about your financial needs in order to make a budget. See if your annual salary is going to cover all of your bills. If not, see if there are ways to earn more money in the company. Find out if there is room for advancement in the company.[4]

   • It's also important to understand if you are being paid enough in relation to your industry peers. Consult industry websites (like https://www.payscale.com/) that report average annual salary numbers for your position and education level.

2. 

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   Look into different careers. You can research online to find out how much you would earn doing different kinds of jobs.[5] Look up a particular job or industry that interests you. See what the typical salary is for entry-level jobs in that industry. You can also learn about benefits like healthcare and tuition reimbursement. Also, you can compare what you would earn in different parts of the country.[6][7]

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   Figure out how much you're worth. If you have taken the time to research what others are earning doing the same kind of work as you are, compare this to the total annual salary you calculated for yourself. Use this information to negotiate a better salary for yourself. The total amount you can earn depends on many factors, such as your education and years of experience. [8]

   • If you are armed with research about how much you could be earning, you might be able to negotiate a better salary. Or, you can ask for a review of your job level or salary based on your qualifications.

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• Keep in mind that the estimated salary calculated using these methods is your gross salary. To find out how much money you'd actually take home, you need to subtract the amount you'd pay in taxes and for other deductions.

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