What your salary is really worth per hour
“£40,000 a year” sounds like one number, but it hides another: what you earn for each hour of your life. A £40,000 salary at 37.5 hours a week is roughly £20.50 an hour; at 50 hours a week with unpaid overtime, it drops to about £15.40. Same salary, very different deal.
This calculator converts in both directions. Enter a salary and your working hours to find the true hourly rate, or enter an hourly wage to see the annual, monthly and weekly equivalents. It is useful for comparing job offers, valuing overtime, pricing freelance work against employment, and answering the classic question: “£60,000 a year is how much an hour?”
How to use it
- Choose your direction: salary → hourly, or hourly → salary.
- Enter the amount and your working pattern: hours per week and weeks worked per year.
- Optionally add unpaid overtime hours — this is where the “true” rate reveals itself.
- Read the full conversion table: hourly, daily, weekly, monthly and annual figures side by side.
What it calculates and how the formula works
| Conversion | Formula |
|---|---|
| Salary → hourly | Annual salary ÷ (hours per week × weeks per year) |
| Hourly → annual | Hourly rate × hours per week × 52 |
| Hourly → monthly | Hourly rate × hours per week × 52 ÷ 12 |
| True hourly (with unpaid overtime) | Annual salary ÷ ((contracted hours + unpaid overtime) × weeks per year) |
Assumptions:
- The standard baseline is 40 hours × 52 weeks = 2,080 hours a year, but you can set your own hours — UK full-time is often 37.5, and part-time or shift patterns differ.
- Figures are gross (before tax). The tool converts pay, it does not compute tax.
- “Unpaid overtime” is optional but eye-opening: it divides your salary by the hours you actually work, not the hours on your contract.
Worked example: comparing two job offers
Priya has two offers. Offer A: $72,000 a year, 40 hours a week. Offer B: $78,000 a year, but the team culture involves roughly 10 unpaid overtime hours a week.
- Offer A: $72,000 ÷ (40 × 52) = $34.62/hour
- Offer B: $78,000 ÷ (50 × 52) = $30.00/hour
Offer B pays $6,000 more a year but $4.62 less per hour of her life. With the conversion table in front of her, Priya can negotiate Offer B up or take Offer A with a clear conscience. This is the calculation the calculator exists for.
Important considerations and limitations
- Gross, not take-home. Two identical salaries in different states or countries produce very different take-home pay. Use this tool for comparing pay structures, not for budgeting your net income.
- Benefits have value too. A lower hourly rate with good health insurance, pension contributions and paid leave can beat a higher bare rate. Price the benefits separately if you want a full comparison.
- Salary ≠ freelance rate. Employees get paid holidays, sick pay and employer tax contributions. A freelancer charging the same hourly number as an employee’s rate is undercharging — see the freelance rate calculator for the full working.
- Overtime rules vary. In the US, non-exempt employees must be paid 1.5× for hours over 40 (FLSA); in the UK there is no automatic overtime premium — it depends on your contract. This tool reports the rate; your contract governs the rights.
- Browser-local: your pay figures never leave your browser.
Frequently asked questions
How do I calculate my hourly rate from my salary?
Divide your annual salary by your total working hours per year (hours per week × weeks worked). For example, £40,000 ÷ (37.5 × 52) = £20.51 per hour.
$60,000 a year is how much an hour?
At a standard 40-hour week, 52 weeks a year: $60,000 ÷ 2,080 = $28.85/hour. The calculator adjusts this for any working pattern.
Should I include unpaid overtime?
Yes — that is the point of the “true rate” field. If you regularly work 50 hours on a 40-hour salary, your real hourly rate is 20% lower than the headline figure. Seeing it written down changes negotiations.
How do I convert hourly pay to a monthly salary?
Multiply your hourly rate by hours per week, then by 52, then divide by 12. So $25/hour at 40 hours a week = $25 × 40 × 52 ÷ 12 = $4,333/month gross.
Does this account for tax?
No. It converts gross pay between time units. Tax depends on your country, state, income level and personal circumstances — far beyond a conversion tool’s job.
What is the difference between this and the rate converter?
This page is the quick two-way converter between salary and hourly pay. The rate converter handles all four units at once (hourly, daily, monthly, annual/salary) in a single view — better when you are comparing contract structures.
Is my salary data uploaded anywhere?
No. Every calculation runs locally in your browser.
Related tools
External references
- US Department of Labor — Fair Labor Standards Act: overtime pay
- GOV.UK — Maximum weekly working hours
- IRS — Self-employment tax
This tool provides estimates for guidance only and is not professional financial, tax, or legal advice.