Hourly Rate Calculator
Convert your salary to an hourly rate, or your hourly rate to an annual salary. Free and instant.
Based on 40 hours/week × 48 weeks/year = 1920 hours per year
How to Calculate Your Hourly Rate from Salary
If you are used to a salaried job and transitioning to freelance work, converting your salary to an hourly rate helps you understand what to charge. The standard formula is simple: divide your annual salary by the total number of hours you work per year.
For example, a £50,000 salary with a 40-hour week over 48 weeks (accounting for holidays) gives you 1,920 working hours per year. Your equivalent hourly rate is £50,000 ÷ 1,920 ≈ £26.04 per hour.
How to Calculate Annual Salary from Hourly Rate
If you already know your hourly rate (as a freelancer or contractor), multiply it by the number of hours you expect to work each week, then by the number of weeks per year. This gives you your estimated annual income.
For instance, at £30 per hour, working 35 hours per week for 48 weeks, your annual income would be £30 × 35 × 48 = £50,400.
Why Freelancers Should Know Their Hourly Rate
Knowing your hourly rate helps you evaluate whether a project is worth taking on. If a client wants a fixed price for a project, you can estimate the hours involved and multiply by your rate to arrive at a fair fee. It also helps you compare freelance opportunities against permanent roles.
What's a Good Hourly Rate in the UK?
The National Living Wage for 2025/2026 is £12.71 per hour for workers aged 21 and over. However, as a freelancer you need to charge significantly more to cover your overheads, tax, insurance, pension, and unpaid time. Most UK freelancers charge between £25 and £100+ per hour depending on their industry and experience.
Track Your Freelance Income with LoveInvoice
Once you have calculated your rate, keep track of every hour you bill with proper invoices.LoveInvoice makes it easy to create professional invoices, track payments, and manage your freelance finances — all for free.