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How to Calculate Your Hourly Rate from Your Annual Salary

salary5 min read2026-06-28

Whether you're comparing job offers, negotiating a contract rate, or just curious what your salary works out to per hour, this guide shows you how to convert your annual salary to an hourly rate.

The Standard Formula

The standard calculation uses a 40-hour work week over 52 weeks (2,080 hours per year), though many professionals use 260 working days (52 weeks × 5 days) with 8-hour days (2,080 total hours):

Hourly Rate = Annual Salary ÷ 2,080

Common Salary to Hourly Conversions

  • £25,000: Approximately £12.02 per hour
  • £30,000: Approximately £14.42 per hour
  • £35,000: Approximately £16.83 per hour
  • £40,000: Approximately £19.23 per hour
  • £50,000: Approximately £24.04 per hour
  • £60,000: Approximately £28.85 per hour
  • £75,000: Approximately £36.06 per hour
  • £100,000: Approximately £48.08 per hour

Adjusting for Holidays and Bank Holidays

If you want a more accurate hourly rate, subtract paid holidays and bank holidays from your total working hours:

Working days = 260 minus 28 (holidays + bank holidays) = 232 days

Working hours = 232 × 8 = 1,856 hours

Adjusted Hourly Rate = Annual Salary ÷ 1,856

Using this adjustment, a £35,000 salary equates to approximately £18.86 per hour instead of £16.83.

Hourly to Annual (The Reverse)

To convert an hourly rate back to annual salary:

Annual Salary = Hourly Rate × 2,080

For example, £20 per hour × 2,080 = £41,600 per year.

Part-Time and Flexible Work

If you work fewer hours, adjust the formula accordingly:

  • 30 hours/week: Hourly rate = salary ÷ (30 × 52) = salary ÷ 1,560
  • 25 hours/week: Hourly rate = salary ÷ (25 × 52) = salary ÷ 1,300
  • 20 hours/week: Hourly rate = salary ÷ (20 × 52) = salary ÷ 1,040

Why Your Hourly Rate Matters

Knowing your hourly rate helps with:

  • Comparing part-time vs full-time job offers
  • Evaluating freelance or contract work opportunities
  • Understanding the value of overtime pay
  • Budgeting for side projects or second jobs

Use our salary calculator to see not just your hourly rate, but your complete take-home pay breakdown including tax and NI for any salary.