If you’re paid an annual salary but want to understand your true hourly wage, you’re not alone. Whether you’re comparing job offers, negotiating pay, tracking freelance value, or simply budgeting more accurately, knowing your hourly rate is incredibly useful.
In this guide, we’ll show you exactly how to calculate your hourly wage from your yearly, monthly, or weekly salary using a simple formula. We’ll also cover common variations, such as calculating hourly pay for 35-, 37.5-, or 40-hour workweeks, and how to account for overtime, holidays, and unpaid breaks.
If you want the fast way, our upcoming Salary–to–Hourly Calculator will give you instant results. But first, here’s the formula you need.
Why Working Out Your Hourly Wage Matters
Understanding your hourly wage helps you:
- Compare job offers fairly
- See the real value of overtime and bonuses
- Know whether a pay rise is worth it
- Calculate your billable rate if you freelance
- Budget more accurately
- Understand how much your time is worth
Many people are surprised by how different their hourly rate is once holidays and actual weekly hours are included. That’s why using the right formula is so important.
The Simple Formula to Convert Salary to Hourly Wage
To convert any salary to an hourly wage, use this formula:
Hourly Wage = Annual Salary ÷ (Hours per Week × Weeks per Year)
Most full-time calculations are based on 52 weeks, even though you may only work 46–48 weeks after holidays. Using 52 weeks gives you the most standardised comparison.
Hourly Wage Examples (Using Common UK Work Schedules)
Below are simple examples showing how salary converts to an hourly rate across different weekly schedules.
Example 1: £30,000 salary, 37.5 hours per week
Hourly Wage = £30,000 ÷ (37.5 × 52) = £15.38 per hour
Example 2: £45,000 salary, 40 hours per week
Hourly Wage = £45,000 ÷ (40 × 52) = £21.63 per hour
Example 3: £28,000 salary, 35 hours per week
Hourly Wage = £28,000 ÷ (35 × 52) = £15.38 per hour
Example 4: Want to skip the maths?
Use our free Salary to Hourly Calculator to get exact results instantly based on your salary and weekly hours.
How to Work Out Your Hourly Wage From Monthly or Weekly Pay
You can also convert your hourly rate from monthly, weekly, or even daily pay.
Monthly to Hourly Formula
Hourly Wage = Monthly Salary × 12 ÷ (Hours per Week × Weeks per Year)
Weekly to Hourly Formula
Hourly Wage = Weekly Pay ÷ Hours per Week
Daily Pay to Hourly Rate
If you’re paid per day:
Hourly Wage = Daily Rate ÷ Hours per Day Worked
These formulas work for full-time, part-time, and casual workers.
Include Holidays to Find Your “Real” Hourly Wage
Most people forget to include paid holiday entitlement when calculating their hourly rate.
For example, UK workers are entitled to at least 28 days of paid annual leave. That means you’re paid for days you don’t work, so your true hourly value is higher.
Adjusted Formula Including Holidays
Hourly Wage = Annual Salary ÷ (Hours per Week × Actual Working Weeks)
If you work 46 weeks per year (after holidays):
Working Weeks = 52 – 6 weeks holiday
This gives you a more realistic picture of what your time is worth.
What About Overtime or Unpaid Breaks?
If your job includes unpaid breaks or unpaid overtime, your hourly wage drops unless you adjust the calculation.
Adjust for Unpaid Breaks
Hours per Week = Contracted Hours – Break Hours
Adjust for Unpaid Overtime
Hours per Week = Contracted Hours + Average Overtime
These small adjustments can change your hourly wage by several pounds.
Hourly Wage Fast Reference Table
Here’s a simple table showing approximate hourly wages for common UK salaries (based on 37.5 hours/week):
Salary to Hourly Wage Reference (Approx.)
| Annual Salary | Approx Hourly Wage |
|---|---|
| £22,000 | £11.28 |
| £26,000 | £13.33 |
| £30,000 | £15.38 |
| £35,000 | £17.95 |
| £40,000 | £20.51 |
| £50,000 | £25.64 |
If you want accurate, personalised numbers, use the Salary to Hourly Calculator once it’s published.
Use a Salary-to-Hourly Calculator for Instant Results
If you don’t want to calculate it manually, our Salary to Hourly Calculator will allow you to:
- Enter your annual, monthly, or weekly pay
- Adjust weekly hours
- Include or exclude holidays
- Compare salaries and hourly wages instantly
This tool will save you time and help you compare job offers or freelance rates with clarity.
Frequently Asked Questions (FAQ)
What is the easiest way to work out my hourly wage?
Use the formula:
Annual Salary ÷ (Hours per Week × 52).
Or use our calculator for instant results.
How many working weeks should I use?
Use 52 weeks for standard comparisons, or fewer weeks if you want your real hourly value, including holidays.
Is the hourly wage based on contracted hours or actual hours?
It should be based on actual hours worked, including unpaid overtime and breaks.
How do part-time workers calculate hourly pay?
Use the same formula-just insert your actual weekly hours.
Is it better to get paid hourly or a salary?
Hourly pay offers flexibility and overtime benefits, while salary offers stability and paid leave. The best option depends on your lifestyle and financial goals.
Final Thoughts
Working out your hourly wage from your salary is simple once you know the formula. Whether you’re comparing jobs, budgeting, or negotiating pay, understanding your true hourly value gives you more control over your financial decisions.
Bookmark this guide and use our Salary–to–Hourly Calculator when it launches to convert your salary instantly and accurately.