Hourly wage calculator
The conversion is simple, hourly rate × hours per week × 52: but the number that matters is what an hour is worth after tax and National Insurance. This calculator shows both directions, plus your true per-hour take-home.
Assumes 52 paid weeks (holiday is paid), England tax bands, standard 1257L code.
£16.00/hour × 37.5 hours/week
£31,200 a year
Take-home: £25,983.60 a year · £2,165.30 a month · £13.32 per hour worked
Gross vs take-home per hour
| Gross hourly rate | £16.00 |
| Tax and NI per hour | −£2.68 |
| What an hour is worth in your pocket | £13.32 |
Overtime maths: each extra hour is taxed at your marginal rate, so an overtime hour is worth less in your pocket than a normal one once you cross a band.
Quick reference at 37.5 hours
At a standard 37.5-hour week: £12.71 (the National Living Wage from 1 April 2026) is £24,784.50 a year, £15 is £29,250.00, £20 is £39,000.00, and £25 is £48,750.00. A 40-hour week adds roughly 6.7% to each.
Why the 52-week assumption is right
Employees are paid for holiday, so a salaried year is 52 paid weeks even though you work about 46 of them. Contractors comparing a day rate should not use 52, unpaid holiday, gaps and sick days mean 44-46 chargeable weeks is more honest, which is why a contract rate has to be well above the salaried equivalent to break even.
The minimum wage check
From 1 April 2026 the National Living Wage is £12.71 an hour for workers aged 21 and over, £10.85 for 18-20, and £8.00 for under-18s and apprentices (gov.uk). The calculator flags any rate below the 21+ figure. Salary sacrifice cannot legally take pay below these rates.
Common rates as a yearly salary
2026/27 tax rates, checked 2026-08-28. Method on the about page.