Free Hourly Rate Calculator

Calculate your hourly rate instantly

Convert between annual salary and hourly rate in seconds. Enter your salary or hourly rate and we'll calculate daily, weekly, and monthly pay figures — free for UK employers and employees.

Free to use
No sign-up required
UK statutory rates built in

Stop calculating manually — track hours automatically

This calculator gives you the numbers. TimeTally tracks hours, approvals, and pay automatically — so you never need to calculate it manually again. From £2/employee/month.

Employees submit time tracking from anywhere

Staff submit time tracking via the iOS app or web. Clock in/out is tracked automatically. Regular and overtime hours are separated — no paper forms, no chasing.

Clock in/out
iOS & web
Auto overtime
Instant notifications
TimeTally timesheet entry showing clock in/out and hours worked

Review and approve time tracking in one tap

All pending time tracking land in your dashboard. Approve or query with a single tap. Every decision is timestamped — full audit trail for every timesheet.

  • All pending time tracking in one place
  • Approve or query with one tap
  • Timestamped approval audit trail
  • Employee notified automatically
TimeTally iOS app showing employer timesheet approval

Pay calculated accurately from approved hours

Pay is calculated directly from approved time tracking. Overtime rates applied automatically. Regular and overtime hours separated — no manual adjustments, no errors.

Auto overtime rates
Regular vs OT split
Clean audit trail
No manual entry
TimeTally pay calculations showing regular and overtime hours broken down

Hours data flows straight to payroll

Approved time tracking feed directly into your payroll export. Direct integration with Xero and QuickBooks — no manual data entry, no missed overtime.

  • Direct Xero & QuickBooks integration
  • CSV export for any payroll software
  • Approved hours included automatically
  • Clean audit trail for every entry
TimeTally payroll export showing hours data sent to Xero and QuickBooks
Meet TimeTally

Stop doing this manually
for every employee

TimeTally automatically tracks hours, calculates pay at each employee's hourly rate, and exports to payroll. Explore all features or see how it works.

Automatic calculations

Each employee's hourly rate is stored and applied automatically. Regular hours, overtime, and holiday pay all calculated correctly — no spreadsheets needed.

One-tap approvals

Managers approve or reject time tracking from any device, with a full audit trail of every decision timestamped and stored automatically.

Payroll-ready exports

Approved hours feed directly into Xero, QuickBooks, or CSV exports — so your payroll run is always accurate and on time.

See what we offer

No credit card required · Set up in minutes · Cancel anytime

TimeTally has been excellent for our business. The app is simple to use, reliable, and makes managing staff records straightforward. The system has saved us a significant amount of administration time. Highly recommended for any business looking for an easy-to-use workforce management solution.

CLI Manchester

Jordan Ingoe, CLI Manchester

Hourly Rate: Frequently Asked Questions

Everything you need to know about hourly rate calculations in the UK. For related topics, try our overtime pay calculator or holiday calculator.

How do I convert my annual salary to an hourly rate?
Divide your annual salary by the total hours you work per year. For example, a £30,000 salary with 37.5 hours per week over 52 weeks is £30,000 ÷ (37.5 × 52) = £30,000 ÷ 1,950 = £15.38 per hour. The calculator above does this instantly — just enter your salary and hours.
What weekly hours should I use when converting salary to hourly rate?
Use your contracted hours, not the hours you actually work. Full-time in the UK is typically 37.5 hours (7.5 hours per day, Monday to Friday) or 40 hours. If you regularly work unpaid overtime, your effective hourly rate will be lower than this calculation shows.
How do I calculate a day rate from an annual salary?
First convert to an hourly rate (salary ÷ total annual hours), then multiply by your working hours per day. For a £30,000 salary working 7.5 hours per day: hourly rate = £15.38, so day rate = £15.38 × 7.5 = £115.38. For freelancers and contractors, day rates are often set higher to cover tax, insurance, and absence of employment benefits.
Does the hourly rate calculation include holiday pay?
Yes. When you receive an annual salary, it includes 5.6 weeks of statutory paid holiday (28 days for a standard 5-day week). If you use 52 weeks in the calculation, the holiday pay is already included in the annual salary figure. If you only work 46 or 47 weeks per year due to unpaid leave, use the actual weeks worked to get a more accurate hourly rate.
How does overtime pay relate to my hourly rate?
Overtime is usually calculated as a multiple of your base hourly rate. Common rates are 1.5x (time and a half) or 2x (double time). If your hourly rate is £15.38, time and a half would be £23.07 per overtime hour. Use our overtime pay calculator to work out the total for any combination of regular and overtime hours.
What is the National Minimum Wage and how does it affect my hourly rate?
The National Minimum Wage sets a floor below which no employer can legally pay. From April 2025, the rates are: £12.21 for workers aged 21 and over, £10.00 for ages 18-20, and £7.55 for under-18s and apprentices. Convert any salary to an hourly rate and check it exceeds the minimum for the employee's age group. Always check gov.uk/national-minimum-wage-rates for the current rates.
How does IR35 affect hourly rates for contractors?
IR35 (off-payroll working rules) can significantly affect a contractor's effective hourly rate. If caught by IR35, contractors are taxed similarly to employees but without employment rights. This can reduce take-home pay by 25-30% compared to working outside IR35. Contractors need to factor in their tax position when quoting day or hourly rates.
How does salary sacrifice affect my hourly rate?
Salary sacrifice (for pensions, cycle-to-work, or childcare vouchers) reduces your gross salary. If you sacrifice £2,000/year into a pension, calculate your hourly rate on the reduced salary (£28,000 instead of £30,000). Your effective hourly rate drops, but you gain the tax and National Insurance savings on the sacrificed amount.
What is a part-time hourly rate calculation?
For part-time employees, the formula is the same: annual salary ÷ total annual hours. A part-time employee earning £15,000 working 20 hours per week for 52 weeks: £15,000 ÷ (20 × 52) = £15,000 ÷ 1,040 = £14.42 per hour. Part-time employees must receive the same hourly rate as comparable full-time employees (pro rata principle).
How do I calculate monthly and weekly pay from an hourly rate?
From an hourly rate: weekly pay = hourly rate × hours per week; monthly pay = (hourly rate × hours per week × 52) ÷ 12. For example, £15/hour × 37.5 hours = £562.50/week. Annual = £562.50 × 52 = £29,250. Monthly = £29,250 ÷ 12 = £2,437.50. The calculator above shows hourly, daily, and annual figures automatically.

Still have a question? See all FAQs →

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