How do i calculate my salary per year

If you want to work out your salary or take-home and only know your hourly rate, use the Hourly Rate Calculator to get the information you need from our tax calculator:

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How to use the Hourly Wage Calculator

The hourly rate calculator will help you see what that wage works out to be. Wondering what your yearly salary is? Comparing different jobs? Enter the hourly rate in the Hourly Wage box, and the number of hours worked each week.

New! If you are earning a bonus payment one month, enter the £ value of the bonus into the bonus box for a side-by-side comparison of a normal month and a bonus month.

Find out the benefit of that overtime! Enter the number of hours, and the rate at which you will get paid. For example, for 5 hours a month at time and a half, enter 5 @ 1.5. There are two options in case you have two different overtime rates. To keep the calculations simple, overtime rates are based on a normal week of 37.5 hours.

New! If your main residence is in Scotland, tick the "Resident in Scotland" box. This will apply the Scottish rates of income tax.

If you know your tax code, enter it into the tax code box for a more accurate take-home pay calculation. If you are unsure of your tax code just leave it blank and the default code will be applied.

If you have a pension which is deducted automatically, enter the percentage rate at which this is deducted and choose the type of pension into which you are contributing. Pension contributions are estimates, click to learn more about pension contributions on The Salary calculator.

If you receive Childcare vouchers as part of a salary sacrifice scheme, enter the value of the vouchers you receive each month into the field provided. If you signed up for the voucher scheme before 6th April 2011, tick the box - this affects the amount of tax relief you are due.

Select your age range from the options displayed. If you are married, tick the "Married" box. Similarly, tick the "Blind" box if you are blind.

If you do not pay National Insurance, for example, if you are over State Pension Age, tick the "No NI" box.

New! There are now three repayment methods for Student Loans, which are known as Plan 1, Plan 2 and Postgraduate Loans. If you are repaying a student loan for a course which started before 1st September 2012, tick "Plan 1", if you are repaying a student loan for a course which started on or after 1st September 2012, tick "Plan 2". If you are repaying a loan for a postgraduate course, tick "Postgraduate".

You can now choose the tax year that you wish to calculate. By default, the 2022 / 23 tax year is applied but if you wish to see salary calculations for other years, choose from the drop-down.

When you're done, click on the "Calculate!" button, and the table on the right will display the information you requested from the tax calculator. You'll be able to see the gross salary, taxable amount, tax, national insurance and student loan repayments on annual, monthly, weekly and daily bases.

This is based on Income Tax, National Insurance and Student Loan information from April 2022. More information on tax rates here.

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Pension Contributions

If you contribute to a pension scheme by having a percentage of your salary deducted by your employer, enter the percentage into the "Pension contribution" field.

If you do not know the percentage that you contribute, you can instead choose to enter the amount, in pounds and pence, that you contribute from each payslip.

Choose the type of pension that you have, either an auto-enrolment employer pension, an other (non-auto-enrolment) employer pension, a salary sacrifice scheme, or a personal pension. For auto-enrolment pensions, the percentage contribution field only applies to your earnings between the lower and upper thresholds (£6,240 to £50,270), not your whole income.

If your pension is not auto-enrolment, you can choose whether your contribution is based on your whole gross salary, or your "Qualifying Earnings", which is the amount you earn between the auto-enrolment thresholds described in the previous paragraph. If your overtime payments or bonuses are subject to pension contributions, tick these boxes (these apply automatically to auto-enrolment pensions).

If you receive cash allowances, like a car allowance or mobile phone allowance, and this is also included in your pensionable pay, tick the "Include cash allowances" box.

Convert your annual salary, monthly wage or weekly pay to an hourly rate and find out what you're earning per hour.

On this page:

• How to calculate your hourly rate
• How to convert a monthly salary to an hourly rate
• $40,000 a year is how much per hour?
• $45,000 a year is how much per hour?
• $50,000 a year is how much per hour?
• $55,000 a year is how much per hour?
• $60,000 a year is how much per hour?

How to calculate your hourly rate

First, multiply the number of hours you work each week by the number of weeks you work each year (commonly 52 or 50). Then, divide your annual salary by this figure. E.g. If you earn a salary of $40,000 and work 40 hours per week for a full year, your hourly rate would be $40,000/(40 × 52) = $19.23.

Hourly = Salary per year / (Hours per week × Weeks per year)

Hourly rate example calculation

Let's say that you earn $50,000 and you work a 40-hour week for 52 paid weeks per year. To work out your hourly rate, your calculation would be:

50000 / (40 × 52) = $24.04 per hour

Your hourly rate for your $50,000 annual salary works out at $24.04.

How to convert a monthly salary to an hourly rate

To calculate your hourly rate based upon your monthly salary, multiply your monthly figure by 12 and then divide it by the number of hours you work per week and again by the number of paid weeks you work each year.

Hourly = (Monthly salary × 12 / Hours per week) / Weeks per year

Example calculation

Example: If you earn $3,000 per month and work a 40-hour week for 52 paid weeks per year, your calculation would be:

(3000 × 12 / 40) / 52 = $17.31 per hour

Your hourly rate for your $3,000 monthly paycheck works out at $17.31.

You can our salary to hourly calculator to find out how much you're earning each month, week, day and hour. Let's look at some common, round salary figures and their equivalent hourly pay rates.

$40,000 a year is how much per hour?

If you have an annual salary of $40,000, it equates to a monthly pre-tax salary of $3,333.33, weekly pay of $769.23, and an hourly wage of $19.23 per hour. These figures are pre-tax and based upon working a 40-hour week for 52 weeks of the year.

$45,000 a year is how much per hour?

If you earn $45,000 as an annual salary, you would be receiving a monthly pre-tax salary of $3,750, a weekly pay of $865.38, and an hourly wage of $21.63 per hour. These calculations assume you work a 40-hour week for 52 weeks of the year.

$50,000 a year is how much per hour?

If you earn $50,000 per year, your hourly wage works out as being $24.04 per hour. In addition, your monthly pre-tax wage would be $4,166.67, and your weekly pay would be $961.54. All calculations are based upon a working schedule of 40-hours per week for 52 paid weeks of the year.

$55,000 a year is how much per hour?

If you have an annual salary of $55,000, it equates to a monthly pre-tax salary of $4,583.33, weekly pay of $1,057.69, and an hourly wage of $26.44 per hour. These figures are pre-tax and based upon working a 40-hour week for 52 weeks of the year.

$60,000 a year is how much per hour?

If you earn $60,000 as an annual salary, you would be receiving a monthly pre-tax salary of $5,000, a weekly pay of $1,153.85, and an hourly wage of $28.85 per hour. These calculations assume you work a 40-hour week for 52 weeks of the year.

Salary comparisons for the US and UK

Our salary to hourly rate calculator includes median pay figures for US and UK workers. The US data comes from the Bureau of Labor Statistics and the UK salary data comes from the Office for National Statistics. National salary data varies based upon gender, age, occupation and other factors.

Summary

Your hourly rate can be calculated by multiplying the number of hours you work each week by the number of weeks you work each year, and then dividing your annual salary by the result. Our calculator can assist you with working this figure out.

Convert hourly rates

Individual hourly to salary conversions include:

• $15
• $17
• $20
• $25

Calculator by Alastair Hazell. Reviewed by Chris Hindle.

If you have any problems using our salary to hourly calculator, please contact us.