If you’re paid by the hour, it can be tricky to know what your annual earnings actually amount to — and what you’ll take home after tax. This calculator converts your hourly rate into a full annual salary breakdown including income tax and National Insurance deductions.
How the Calculation Works
Your gross annual salary is calculated as: hourly rate × hours per week × weeks per year. The standard assumption is 37.5 hours per week and 52 weeks per year, but you can adjust both figures. Tax and NI are then applied using the same PAYE rules as salaried employees.
National Living Wage 2025/26
From April 2025, the National Living Wage for workers aged 21 and over is £12.21 per hour. Workers aged 18–20 receive £10.00/hour, and those under 18 receive £7.55/hour. Apprentices in their first year earn at least £7.55/hour.
Net vs Gross Hourly Rate
Your gross hourly rate is what your employer pays. Your net hourly rate is what you take home after deductions. For example, someone on £15/hour working 37.5 hours a week earns £29,250 gross, and their net hourly rate after tax and NI is significantly less.