Quick answer
A simple annual salary estimate is hourly rate x paid hours per week x paid weeks per year.
For a standard full-year estimate, many calculators use 52 paid weeks. That can overstate pay if you have unpaid leave, term-time work, seasonal gaps or variable hours.
Worked example: £18/hour for 37.5 hours per week
At £18 per hour for 37.5 paid hours per week, simple annual gross pay is £35,100 if paid across 52 weeks.
That gross figure is not take-home pay. Income tax, employee National Insurance, pension deductions and student loan repayments may reduce the amount paid into your bank account.
If some weeks are unpaid, the annual gross figure falls. For example, 46 paid weeks would be £31,050 before deductions.
What counts as paid hours
Use paid working hours, not time spent at work if breaks are unpaid. If a lunch break is unpaid, it should normally be excluded from the weekly hours figure.
If you have different rates for evenings, weekends or overtime, either calculate each rate separately or use a cautious average.
For zero-hours or changing shift patterns, use an average over several normal weeks rather than the best week.
Common mistakes
Multiplying hourly rate by contracted hours when actual paid hours are regularly lower.
Including unpaid breaks or unpaid holiday in paid working time.
Comparing hourly gross pay with salary take-home pay instead of comparing like with like.
Try the calculator
Use the related calculator to test the numbers against your own assumptions.
Hourly Wage Calculator UKDisclaimer
This guide is a planning explanation only. Your actual pay depends on your contract, paid hours, holiday treatment, tax code, pension and payroll rules.