Salary Calculator
Comparing a salaried job against contract or part-time work means putting both onto the same footing. This calculator converts between annual, monthly, weekly and hourly pay.
Formula
Take-home = gross − income tax − National Insurance − other deductions
- Monthly gross = annual ÷ 12
- Weekly gross = annual ÷ 52
£35,000: £4,486 tax and £1,794 NI leave £28,720, or £2,393 a month
Annual to Hourly
Hourly rate = Annual salary ÷ (hours per week × weeks per year)
£35,000 on a 37.5-hour week is 35,000 ÷ 1,950 = £17.95 an hour.
The hours assumption matters enormously. The same £35,000 on a 40-hour week is £16.83 — more than a pound an hour less for the same pay.
Why 52 Weeks Is the Right Divisor
It is tempting to subtract holiday weeks, but salaried pay includes paid leave. Dividing by 46 or 47 overstates the hourly rate.
The comparison changes for contract work: a day rate usually excludes holiday, pension and sick pay, so a contractor needs a noticeably higher headline rate to match a salary.
Gross Is Not Take-Home
These figures are gross. Income tax, National Insurance, pension contributions and any student loan repayment all come off before the money reaches your account.
As a rough guide for UK basic-rate earners, take-home is often around 70–75% of gross, though it varies with your tax code, pension rate and student loan plan.
Quick Reference
| Gross salary | Income tax | National Insurance | Take-home |
|---|---|---|---|
| £20,000 | £1,486 | £594 | £17,920 |
| £30,000 | £3,486 | £1,394 | £25,120 |
| £40,000 | £5,486 | £2,194 | £32,320 |
| £50,000 | £7,486 | £2,994 | £39,520 |
| £60,000 | £11,432 | £3,211 | £45,357 |
Frequently Asked Questions
- How do I convert salary to hourly rate?
- Divide the annual salary by your contracted hours per week multiplied by 52. For 37.5 hours that is 1,950 hours a year.
- Should I divide by 52 weeks or subtract holiday?
- Use 52. Salaried pay already includes paid annual leave, so removing holiday weeks inflates the hourly figure.
- How much more should a contractor charge?
- Enough to cover holiday, pension, sick pay, and periods between contracts. A common rule of thumb is 20 to 30 per cent above the equivalent salaried rate.
- Is this my take-home pay?
- No, these are gross figures before tax, National Insurance, pension and student loan deductions.