How do you convert an hourly rate to an annual salary?

We multiply hourly rate × hours per week × 52 weeks. The default is 37.5 hours (standard UK full-time); you can change this to match your contract.

What is the UK National Minimum Wage?

From April 2025 the National Living Wage (21+) is £12.21 an hour. Rates for 18-20 year-olds and apprentices are lower. See gov.uk for the latest schedule.

Does the calculator account for unpaid leave?

By default we use 52 weeks, i.e. you're paid every week of the year including annual leave. If you're term-time only (e.g. teaching or zero-hours), set a lower weeks-per-year value.

Is the tax calculation identical to the salary calculator?

Yes - we annualise your hourly rate to an equivalent gross salary and run the same UK PAYE calculation (Income Tax + NI + optional student loans + pension sacrifice).

£12.21/hour on 40 Hours a Week UK 2026/27

At £12.21/hour working 40 hours/week, gross pay is £25,397 a year. After Income Tax and National Insurance, take-home is £21,805 annually - that is £1,817 a month, £10.48 net per hour after deductions. England rules, 2026/27.

Take-home pay

£20,662

13.2% effective tax rate

Monthly: £1,722
Weekly: £397
Daily: £79
Hourly: £10.60

Annual gross salary	£23,810
Personal Allowance used	+£12,570
Income Tax	−£2,248
National Insurance	−£899
Annual take-home	£20,662

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Weekly and monthly breakdown

Gross weekly: £488 (£12.21/hour × 40h).
Gross annual: £25,397 (52 weeks).
Annual take-home: £21,805 after Income Tax and NI.
Monthly take-home: £1,817.
Net hourly equivalent: £10.48/hour after PAYE deductions.

Your salary in context

ONS · HMRC · CPI

Annual equivalent

£12.21/hour over 40h/week is a gross annual salary of £25,397.
Net per hour

After Income Tax and NI you actually keep about £10.48 per hour worked — roughly £83.87 per day and £419.33 per week.
Monthly take-home

Across a 12-month year that works out to around £1,817 a month.
vs UK median hourly

The UK median full-time salary (£37,430) divided by a 37.5-hour week works out to about £19.19/hour. £12.21 is 36% below that.
Minimum wage check

£12.21 is below the UK National Living Wage (£12.71/h from April 2026 for 21+). Employers must pay at least that rate.
Typical roles

An annualised salary of £25,397 is typical for: NHS Band 3, police constable (starter), customer service team leader.
Top tax band

At this rate your highest marginal income-tax band is the Basic rate at 20%.

Frequently asked questions

How do you convert an hourly rate to an annual salary?: We multiply hourly rate × hours per week × 52 weeks. The default is 37.5 hours (standard UK full-time); you can change this to match your contract.
What is the UK National Minimum Wage?: From April 2025 the National Living Wage (21+) is £12.21 an hour. Rates for 18-20 year-olds and apprentices are lower. See gov.uk for the latest schedule.
Does the calculator account for unpaid leave?: By default we use 52 weeks, i.e. you're paid every week of the year including annual leave. If you're term-time only (e.g. teaching or zero-hours), set a lower weeks-per-year value.
Is the tax calculation identical to the salary calculator?: Yes - we annualise your hourly rate to an equivalent gross salary and run the same UK PAYE calculation (Income Tax + NI + optional student loans + pension sacrifice).