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.

Used by hundreds of UK businesses
  • Free to use
  • No sign-up required
  • Works both ways
Payroll integrationsPaying a team by the hour? TimeTally prices each person's approved hours at their own rate and exports them to Xero, QuickBooks or CSV. £3 per employee a month.Hours and pay to Xero or QuickBooks · £3 per employee
What do you want to calculate?

Standard UK full-time is 37.5–40 hours/week

Weeks per year

Use 52 for full year, or less if accounting for unpaid leave

Hourly rate
£15.38
Annual salary
£32,000
Daily pay
£123.08
Weekly pay
£615.38
Monthly pay
£2,666.67

£32,000 ÷ 2,080 hours/year = £15.38/hour (40 hours/week × 52 weeks)

Paying a team by the hour? TimeTally works out each person's pay from their clock-ins, at their own hourly rate, with overtime included.

Try it free for 14 days

Then £3 per employee per month. No card needed.

Your pay at other hours

Same salary, more hours, less for each hour

On £32,000 a year over 52 weeks, your 40 hours a week make each hour worth £15.38. Work 45 hours for the same salary and it drops to £13.68. That is why unpaid overtime lowers your real hourly rate.

  1. 30h a week£20.51
  2. 35h a week£17.58
  3. 37.5h a week£16.41
  4. 40h a weekYou£15.38
  5. 45h a week£13.68
  6. 50h a week£12.31 (below the minimum wage for workers aged 21 and over)

From a calculator to a payroll run

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 £3/employee/month.

  1. Employees submit timesheets from anywhere

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

    • Clock in/out
    • iOS, Android & web
    • Auto overtime
    • Email notifications
  2. Review and approve timesheets in one tap

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

    • All pending timesheets in one place
    • Approve or reject with one tap
    • Timestamped approval audit trail
    • Employee emailed automatically
  3. Pay calculated accurately from approved hours

    Pay is calculated directly from approved timesheets. 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
  4. Hours data flows straight to payroll

    Approved timesheets 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 does this for you

Select any feature for the detail.

  • Overtime that works itself out.

    Two triggers: threshold overtime kicks in once an employee exceeds a set number of hours per day or week. Time-of-day overtime pays a premium for hours worked in a specific window (e.g. after 6pm or before 6am), regardless of total hours. Two pay methods: a rate multiplier (e.g. 1.5×) or a fixed hourly rate for overtime hours. Stack multiple rules, build tiers, and configure each employee independently.

  • Know exactly where the hours went.

    Entirely optional — only enable it if you need it. When on, employees split their hours across projects when submitting (e.g. 3h on Client A, 4h on internal work). You can set project pay for the worker: an hourly rate on top of or instead of their usual rate, or a flat fee per entry (useful for callouts or site visits). Managers get a clear breakdown of where time is actually going.

  • Offer time off instead of overtime pay.

    An optional alternative to paying overtime — enable it only if you want to offer time off in lieu instead of (or alongside) extra pay. Set a TOIL conversion rate (e.g. 1h overtime = 1.5h leave) and overtime hours automatically accrue as a TOIL balance — no manual tracking. TOIL is kept separate from annual leave so it never eats into holiday entitlement. Employees book it the same way they book any other leave.

  • Approve a whole week from your phone.

    Managers approve or reject timesheets from any device — phone, tablet, or desktop. Rejections include a written reason so employees know exactly what needs fixing and can resubmit. Managers can see who has not submitted for the period, and are emailed as each timesheet comes in. Pay totals are calculated automatically from approved hours — no manual maths at payroll time.

  • Clock in, or fill in a form.

    Two submission modes — employees use whichever fits their workflow. Clock-in mode starts a live timer the moment they begin their shift. The timer runs in the background even if the app is closed, so no hours are lost. Form mode lets them enter start time, end time, and breaks at the end of the day or week. Both work on mobile and desktop.

  • Every hour costed at the right rate.

    Set each employee's own hourly rate and pay totals are calculated automatically from their approved hours. Scope managers to their department so they only ever see their own team's data. Want to keep salaries private? Hide pay rates and totals from managers entirely — they see hours, but never figures. Full control over who sees what.

  • Straight into Xero or QuickBooks.

    Send approved timesheets to payroll in a few taps. Export to CSV, Xero, or QuickBooks — filter by date range, employee, or department, and choose exactly which columns to include. You can combine timesheet and leave data in a single export so your payroll software gets everything it needs in one file.

Loved by UK small businesses

Real reviews from TimeTally customers

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.
Jordan IngoeCLI Manchester
Setup was dead simple and the team just got on with it. Got everyone up and running in an afternoon with no help needed. Does everything we need for timesheets and holidays without the faff.
S.M.
Has completely changed how I handle timesheets. Used to dread it every week — now it takes me minutes. Really easy to get around and my staff picked it up straight away.
J.T.
Started using it just for rotas but quickly realised it does loads more. The timesheets and leave management are great, and it even handles TOIL and overtime which I wasn't expecting. Use it for everything now.
R.K.

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 calculationsEach employee's hourly rate is stored and applied automatically. Regular hours, overtime, and paid holiday all calculated from approved time — no spreadsheets needed.
  • One-tap approvalsManagers approve or reject timesheets from any device, with a full audit trail of every decision timestamped and stored automatically.
  • Payroll-ready exportsApproved hours feed directly into Xero, QuickBooks, or CSV exports — so your payroll run is always accurate and on time.

See what we offer

£3/employee/month

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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 1 April 2026, the rates are: £12.71 for workers aged 21 and over, £10.85 for ages 18-20, and £8.00 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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Set a rate per employee once and let approved hours do the maths every week.

Track hours once, and let the pay work itself out

TimeTally records clock-ins, breaks and overtime, applies each person's rate, and exports approved hours straight to payroll.

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