Hourly rate calculator
Turn an hourly rate into what actually reaches your account, after income tax, National Insurance, pension and student loan.
How this is calculated
Your annual gross is the hourly rate multiplied by hours a week multiplied by paid weeks a year. That figure is then run through the normal PAYE calculation.
The paid weeks field matters more than people expect. A salaried employee is paid for all 52 weeks including holiday. Someone paid only for hours worked, with no holiday pay, may be closer to 46 or 48.
Income tax applies band by band, National Insurance is charged on gross pay above the primary threshold, and both National Insurance and the student loan ignore your pension contribution.
Overtime at a higher rate is not handled here. Work the overtime out separately and add it to the annual gross if you need it included.
Rates used · 2026/27
| Personal allowance | £12,570 |
| Basic rate 20% | £12,571 to £50,270 |
| Higher rate 40% | £50,271 to £125,140 |
| Employee NI 8% | £12,570 to £50,270 |
| National Living Wage, 21 and over | £12.71 an hour from April 2026 |
Last checked July 2026. Source: HMRC and gov.uk.
Worked example
£15 an hour for 37.5 hours over 52 paid weeks is £29,250 gross. After a 5% pension, income tax and National Insurance, take-home is £23,410 a year, or £1,951 a month. If you were only paid for 46 weeks instead, the same rate would produce roughly £4,000 less.
Common questions
Should I enter 52 weeks or fewer?
If you are salaried or receive paid holiday, use 52. If you are only paid for the hours you actually work with no holiday pay, use the number of weeks you expect to work.
Does this include holiday pay?
Only through the weeks figure. Statutory holiday entitlement in the UK is 5.6 weeks including bank holidays for a full-time worker.
What about overtime?
Not included. Calculate the overtime separately and add it to your gross if you want the full picture.
Is this the same as a contractor day rate?
No. A day rate is usually paid gross with no employer pension and no paid holiday, so comparing it directly against a salary is not like for like.