Hourly to Annual Salary Calculator 2026/27
To convert an hourly rate to an annual salary, multiply by your weekly hours and then by 52. At £18.50/hour for 37.5 hours a week, that's £36,075 per year, equivalent to take-home pay of around £27,500 after tax and NI. Enter your hourly rate below to see gross and net figures across all pay periods.
Figures verified against HMRC PAYE & NI rates on .
Written by James HartleyCIMA
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Your gross hourly pay before any deductions.
Your contracted working hours per week.
Reduce for unpaid leave or part-year working.
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How Hourly to Annual Salary Calculator 2026/27 Works
Annual salary = Hourly Rate × Hours per Week × Weeks per Year. For a standard 37.5-hour week over 52 weeks, the multiplier is 1,950.
Take-home calculation
We then apply the standard 2026/27 PAYE calculation to your annual equivalent salary: personal allowance (£12,570), income tax at 20%/40%/45%, and employee NI at 8%/2%. No pension or student loan deductions are applied by default.
National Minimum/Living Wage check
We show the current minimum wage rates for reference so you can verify your rate is legally compliant.
Frequently Asked Questions
Multiply your hourly rate by your weekly hours, then by the number of weeks you work per year. For a standard 37.5-hour week, 52 weeks: Annual Salary = Hourly Rate × 37.5 × 52. For example, £18.50/hour = £18.50 × 37.5 × 52 = £36,075 per year.
The National Living Wage (for workers aged 21 and over) is £12.21 per hour from April 2026. That equates to £23,809.50 per year for a standard 37.5-hour week. The National Minimum Wage for 18 to 20 year olds is £10.00/hr (£19,500/year) and for under-18s/apprentices, £7.55/hr.
It depends on how your pay is structured. If your hourly rate includes holiday pay ('rolled-up holiday pay'), you may only work 46 to 48 weeks and still receive pay for 52. If holiday pay is paid separately (as is best practice), you should use 52 weeks in your calculation. Most employed workers receive 52 weeks of pay including paid holiday.
PAYE treats all employment income the same regardless of whether you're paid hourly or on a salary. Your employer deducts income tax and National Insurance from each pay packet based on your tax code. For 2026/27, you pay 20% income tax between £12,570 and £50,270, 40% from £50,270 to £125,140, and 8% NI between £12,570 and £50,270.
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Official Rates Used
This calculator uses official HMRC rates for 2026/27. View the current rates at GOV.UK:
Rates last verified:
Disclaimer: This calculator provides estimates based on standard HMRC rates for 2026/27. Results may vary based on individual circumstances. This is not financial advice. Always consult a qualified accountant or CIMA-qualified financial adviser for personal tax matters.