Salary to hourly calculator
What your salary works out at per hour — before tax and after it, and what unpaid overtime is really costing you.
Your real hourly rate
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| Contracted hourly rate | — |
|---|---|
| Real rate including extra hours | — |
| After tax and NI, per hour | — |
| Per working day | — |
| Unpaid overtime is worth | — |
| Working days a year | — |
Why the usual answer is wrong
The common shortcut is salary ÷ 52 ÷ hours. It treats paid holiday as though you worked it. You are paid for roughly 260 weekdays a year but you only work 260 minus your annual leave and the eight bank holidays — around 224 days on a standard 28-day allowance. Dividing by the smaller number gives a meaningfully higher hourly rate, and it is the honest one when comparing a salaried job with contract or freelance work quoted per day.
The number that changes decisions
Add the hours you actually work beyond contract. Five unpaid hours a week on a £35,000 salary at 37.5 contracted hours is roughly 224 extra hours a year — about £4,000 of work, and it drops the real rate by more than a tenth. That is usually the figure worth knowing before a pay review, and it is the one nobody calculates.
Comparing with contract rates
A day rate has no holiday pay, no employer pension contribution, no sick pay and no notice period. A rough rule is that a contract day rate needs to be about 25–30% above the salaried equivalent before it is comparable, and more if you would be paying for your own insurance and accounting.
Common questions
How do I convert my salary to an hourly rate?
Divide your salary by the hours you actually work in a year — not by 52 weeks. Take 260 weekdays, subtract your paid leave and bank holidays, multiply by your daily hours, then divide the salary by that.
Should I divide by 52 weeks?
Not if you get paid holiday. You are paid for the holiday but do not work it, so dividing by 52 understates your true hourly rate.
What is £35,000 a year per hour?
On 37.5 contracted hours with 28 days leave, about £20.85 an hour. If you also work five unpaid hours a week, the real rate falls to roughly £18.40.
How much more should a contract day rate be?
Typically 25–30% above the salaried equivalent to cover the absence of holiday pay, sick pay, pension contributions and notice, and more if you are paying for insurance and accounting yourself.
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