Guides — Changing your earnings

Hourly Pay vs Annual Salary: How They Relate

How an hourly rate and an annual salary relate to each other, and the real-world details that can make a direct comparison misleading.

Last reviewed 2026-08-21

The basic relationship

Annual gross pay is your hourly rate × hours per week × working weeks per year, and the same relationship works in reverse to convert an annual salary back to an hourly rate.

A worked example

Using WageOra's default assumptions of 37.5 hours a week and52 working weeks a year: £15 an hour × 37.5 hours = £562.50 a week, and £562.50 × 52 = £29,250 a year.

Why real-world comparisons aren't always this simple

Two jobs quoting the same hourly rate or the same annual salary aren't always directly comparable. Some contracts pay for unpaid breaks and some don't; "hours per week" can mean contracted hours or actual hours worked, which may include regular overtime; some hourly roles fold holiday pay into the hourly rate while salaried roles pay holiday separately; and irregular or zero-hours patterns mean the working-weeks assumption may not apply at all. Adjust the figures to match your own actual pattern rather than relying on a rounded default.

This is gross pay, not take-home pay

Every figure here is gross, before Income Tax, National Insurance, pension or any other deduction. If you want to know what you'd actually take home, see gross pay vs net pay and try the Salary Calculator.

Convert your own numbers

The Hourly Wage Calculator converts between an hourly rate and an annual salary using your own hours and working weeks, in either direction.

Try the Hourly Wage Calculator

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