The basic gross-pay formula
At 25 per hour, 40 hours per week, and 52 paid weeks, the simple annual estimate is 52,000. If four weeks are unpaid, using 48 paid weeks produces 48,000.
Monthly pay is not four weekly payments
A calendar year contains more than 48 weeks. For a consistent monthly average, divide annual pay by 12. For weekly budgeting, use the weekly figure; for a monthly comparison, use the annual figure divided by 12.
Gross is not take-home pay
The converter does not calculate income tax, national insurance or social contributions, pension deductions, health insurance, student loans, or other payroll items. These rules vary by country and personal circumstances. Use an official calculator or payslip for a net-pay estimate.
Compare total compensation
When comparing an hourly role with a salaried role, include paid leave, sick leave, retirement contributions, insurance, bonuses, overtime treatment, schedule stability, travel time, and equipment. A higher cash rate may not be a better total package.
Contractor rates require another calculation
A self-employed worker may pay business costs and spend substantial time on administration or marketing. Do not treat an employee hourly rate as an equivalent freelance billing rate. Use the Freelance Rate Calculator for that comparison.
For a quick gross estimate, open the Hourly Pay to Salary Converter.