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Salary Calculator — Hourly to Annual Salary Converter

Convert between hourly, daily, weekly, monthly, and annual salary

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Salary Calculator: Wage Conversion and Compensation Analysis for 2026

The 2026 Wage Landscape

The gap between median salaries in the United States and United Kingdom has widened significantly. American workers earn approximately $62,192 median annual wage, whilst UK workers earn £38,500 (approximately $52,500). Understanding salary conversion across time periods—hourly, weekly, monthly, annually—enables informed career decisions.

Current wage data (February 2026):

| Metric | United States | United Kingdom | |--------|--------------|----------------| | Median Annual Salary | $62,192 | £38,500 | | Average Annual Salary | ~$70,000 | £41,000 | | Median Weekly Earnings | $1,192 | £766.60 | | National Minimum Wage | $7.25 (federal) | £12.71 (21+) | | Highest State/Region | Washington: $17.13 | London: £46,800 | | AI/ML Engineer Average | $195,425 | £85,000-120,000 |

Sources: BLS, ONS, GOV.UK

The AI boom has created extraordinary salary premiums, with AI engineers commanding $140,000-$600,000+ depending on experience and employer.

Contents

Calculator Guide

The Base Rate field accepts either hourly wage or annual salary, depending on the Input Type selected.

Weekly Hours determines the multiplier for hourly-to-annual conversion. Standard full-time is 40 hours (USA) or 37.5 hours (UK). Part-time workers should enter actual weekly hours.

Overtime Hours and Overtime Rate calculate additional compensation. Standard overtime is 1.5× (time-and-a-half); some industries pay 2× for weekends or holidays.

Additional Income captures bonuses, commissions, tips, or other variable compensation. Enter the expected annual total.

Results display:

  • Annual salary equivalent
  • Monthly, bi-weekly, weekly breakdown
  • Hourly rate equivalent (including or excluding overtime)
  • Overtime contribution to total compensation
  • Total compensation including all additional income

Standard Conversion Factors:

  • Annual to Monthly: ÷ 12
  • Annual to Bi-weekly: ÷ 26
  • Annual to Weekly: ÷ 52
  • Annual to Hourly (40 hrs): ÷ 2,080
  • Annual to Hourly (37.5 hrs): ÷ 1,950

Salary Conversion Mathematics

Hourly to Annual

Formula:

Annual = Hourly Rate × Hours/Week × 52 weeks

Example: UK National Living Wage (April 2026)

  • Hourly Rate: £12.71
  • Hours/Week: 40
  • Annual: £12.71 × 40 × 52 = £26,436.80

This represents the annual earnings of a full-time worker on minimum wage.

Annual to Hourly

Formula:

Hourly = Annual Salary ÷ (Hours/Week × 52)

Example: UK Median Salary

  • Annual: £38,500
  • Hours/Week: 37.5
  • Hourly: £38,500 ÷ (37.5 × 52) = £19.74/hour

With Overtime

Formula:

Regular = Hourly × Regular Hours × 52
Overtime = Hourly × Overtime Multiplier × Overtime Hours × 52
Total = Regular + Overtime

Example: $25/hour with 5 hours weekly overtime at 1.5×

  • Regular: $25 × 40 × 52 = $52,000
  • Overtime: $25 × 1.5 × 5 × 52 = $9,750
  • Total: $61,750

The 5 hours weekly overtime adds $9,750 annually—a significant 18.8% income boost.

2026 Minimum Wage Landscape

UK National Minimum Wage (From 1 April 2026)

The Government-approved rates increase significantly:

| Category | Rate | Annual (40 hrs) | Increase | |----------|------|-----------------|----------| | National Living Wage (21+) | £12.71/hour | £26,437 | +4.1% | | 18-20 year olds | £10.85/hour | £22,568 | +8.5% | | 16-17 year olds | £8.00/hour | £16,640 | +6.0% | | Apprentice rate | £8.00/hour | £16,640 | +6.0% |

Source: GOV.UK

Key Changes:

  • The 8.5% increase for 18-20 year olds signals government intent to phase out youth rates
  • By 2028-2029, 18+ workers may receive the full National Living Wage
  • Full-time NLW workers gain approximately £900 annually

Real Living Wage (Voluntary): The Living Wage Foundation rates exceed statutory minimums:

  • UK Real Living Wage: £13.45/hour (£27,976 annual)
  • London Living Wage: £14.80/hour (£30,784 annual)

US Minimum Wage (2026)

The federal minimum wage remains frozen at $7.25 since 2009—the longest period without increase in the law's history. However, 23 states are increasing minimum wages in 2026:

| State | 2026 Rate | Annual (40 hrs) | |-------|-----------|-----------------| | Washington | $17.13 | $35,630 | | California | $16.90 | $35,152 | | Connecticut | $16.94 | $35,235 | | New York (NYC) | $17.00 | $35,360 | | Arizona | $15.15 | $31,512 | | Florida (Sept 2026) | $15.00 | $31,200 | | Federal Minimum | $7.25 | $15,080 |

Source: Paycom

Notable Points:

  • 17 states plus DC will have $15+ minimum wage by 2026
  • Tukwila, Washington leads with $21.65/hour locally
  • 5 states have no state minimum wage law (Alabama, Louisiana, Mississippi, South Carolina, Tennessee)

Highest Paying Jobs in 2026

AI and Technology Salaries

The AI talent shortage has produced extraordinary compensation:

| Role | Base Salary Range | Total Compensation | |------|-------------------|-------------------| | Chief AI Officer (CAIO) | $225,000-$400,000 | $400,000+ | | AI Research Scientist | $150,000-$275,000 | Up to $489,000 | | AI/ML Engineer | $140,000-$210,000 | $400,000-$600,000+ | | Machine Learning Engineer | $112,000-$350,000 | Varies by level | | AI Infrastructure Architect | $155,000-$250,000 | $300,000+ | | Deep Learning Engineer | $141,435 average | Higher at top firms |

Source: Nexford University, Tech Republic

Big Tech AI Compensation:

  • Netflix posted AI roles with salary ranges up to $900,000
  • Average AI Engineer at major tech companies: $201,906 base, $451,000 total
  • Specialists in LLM fine-tuning and multimodal systems earn 30-50% premiums

Salary Growth: AI engineer salaries jumped $50,000 year-over-year to average $206,000 in 2025. Growth continues at 4.4% annually versus 1.6% tech-wide average.

Traditional High-Paying Careers

| Profession | US Average | UK Average | |------------|------------|------------| | Surgeon | $350,000+ | £100,000-200,000 | | Dentist | $180,000 | £70,000-120,000 | | Corporate Lawyer | $150,000-$300,000 | £60,000-150,000 | | Investment Banker | $150,000-$400,000 | £80,000-200,000 | | Pharmacist | $130,000 | £45,000-55,000 | | Pilot | $120,000-$200,000 | £60,000-120,000 |

Salary by Industry and Region

US Salaries by Industry

| Industry | Median Salary | vs. National Median | |----------|--------------|---------------------| | Technology | $95,000 | +53% | | Finance | $85,000 | +37% | | Healthcare (Physicians) | $200,000+ | +222% | | Healthcare (Nurses) | $75,000 | +21% | | Legal | $90,000 | +45% | | Manufacturing | $55,000 | -11% | | Retail | $32,000 | -48% | | Hospitality | $35,000 | -44% |

Source: Visdum

US Salaries by State

Average salaries vary significantly by geography:

| State | Average Salary | Cost of Living | |-------|---------------|----------------| | California | $75,000+ | Very High | | New York | $72,000 | Very High | | Massachusetts | $73,000 | High | | Connecticut | $75,000 | High | | Washington | $70,000 | High | | Texas | $58,000 | Moderate | | Florida | $54,000 | Moderate | | Mississippi | $45,000 | Low |

UK Salaries by Region

Regional disparities are significant:

| Region | Median Salary | vs. National | |--------|--------------|--------------| | London | £46,800 | +21% | | South East | £39,038 | +1% | | Scotland | £38,315 | -0.5% | | Edinburgh | £38,900 | +1% | | Manchester | £35,900 | -7% | | North East | £32,960 | -15% | | UK Median | £38,500 | — |

Source: Pebl

Contractor Versus Permanent Comparison

The True Cost Comparison

A contractor day rate must cover benefits that permanent employees receive automatically:

| Component | Permanent Employee | Contractor | |-----------|-------------------|------------| | Base Salary | Included | Day rate | | Pension (5% employer) | Provided | Self-funded | | Holiday Pay (28 days) | Paid | Unpaid | | Sick Pay | Statutory minimum | None | | National Insurance (employer) | Paid by employer | Self-funded | | Training/Development | Often provided | Self-funded |

Conversion Formula

Equivalent Day Rate = (Annual Salary × 1.3) ÷ 220

The 1.3 multiplier accounts for benefits; 220 represents working days after holiday and sick leave.

Example: £60,000 Permanent vs. Contractor

Permanent Value:

  • Base: £60,000
  • Pension (5%): £3,000
  • Holiday Pay: Built-in
  • Total Value: ~£63,000+

Equivalent Day Rate:

  • (£60,000 × 1.3) ÷ 220 = £354.55/day

A contractor must charge at least £355/day to match a £60,000 permanent role.

IR35 Considerations (UK)

IR35 legislation affects contractor taxation. Inside IR35, contractors pay similar taxes to employees but without benefits—effectively the worst of both worlds. Outside IR35, contractors retain tax efficiency but face greater scrutiny.

Total Compensation Analysis

Beyond Base Salary

Total compensation includes:

| Component | Typical Value | Notes | |-----------|--------------|-------| | Base Salary | 70-80% of total | Core compensation | | Bonus | 0-30% of base | Performance-based | | Pension Match | 3-10% of base | "Free money" | | Stock/Equity | Variable | Significant at tech firms | | Healthcare | $6,000-20,000/year (US) | Major US benefit | | Holiday Days | ~£150-300/day value | UK: 28 days minimum |

Example: Two Job Offers

Offer A:

  • Base: £55,000
  • Pension Match: 5%
  • Bonus: 10%
  • 30 days holiday

Offer B:

  • Base: £60,000
  • Pension Match: 3%
  • Bonus: 5%
  • 25 days holiday

Total Value Comparison:

| Component | Offer A | Offer B | |-----------|---------|---------| | Base | £55,000 | £60,000 | | Pension Match | £2,750 | £1,800 | | Expected Bonus | £5,500 | £3,000 | | Holiday Value (@ £212/day) | £6,360 (30 days) | £5,300 (25 days) | | Total | £69,610 | £70,100 |

Despite £5,000 lower base salary, Offer A provides nearly equivalent total compensation with better work-life balance.

How This Calculator Works

Hourly to Annual:

regularAnnual = hourlyRate × hoursPerWeek × 52
overtimeAnnual = hourlyRate × overtimeMultiplier × overtimeHours × 52
totalAnnual = regularAnnual + overtimeAnnual + bonus + commission

Annual to Hourly:

hourlyRate = annualSalary / (hoursPerWeek × 52)

Pay Period Conversion:

monthly = annual / 12
biWeekly = annual / 26
weekly = annual / 52
daily = annual / (daysPerWeek × 52)

Effective Hourly (including overtime):

totalHours = (regularHours + overtimeHours) × 52
effectiveHourly = totalAnnual / totalHours

All calculations execute locally within the browser.

Sources

FAQs

What is the UK National Living Wage for 2026?

From 1 April 2026, the National Living Wage increases to £12.71 per hour for workers aged 21 and over. This represents a 4.1% increase, adding approximately £900 to annual earnings for full-time workers. The rate for 18-20 year olds rises to £10.85 (8.5% increase).

What is the US federal minimum wage in 2026?

The federal minimum wage remains $7.25 per hour, unchanged since 2009. However, 23 states are increasing their minimum wages in 2026, with Washington leading at $17.13 and California at $16.90. Seventeen states plus DC will have $15+ minimum wage by 2026.

How do I convert annual salary to hourly rate?

Divide annual salary by total working hours. For 40-hour weeks: divide by 2,080. For 37.5-hour weeks (UK standard): divide by 1,950. Example: £45,000 ÷ 1,950 = £23.08 per hour.

What are AI engineer salaries in 2026?

AI/ML engineers command $140,000-$600,000+ depending on experience and company. Average base salary is approximately $195,000-$206,000. Total compensation at major tech companies reaches $451,000+, with Netflix posting roles up to $900,000.

How does contractor rate compare to permanent salary?

A useful formula: Equivalent Day Rate = (Annual Salary × 1.3) ÷ 220. The multiplier accounts for benefits (pension, holiday pay, sick leave). A £60,000 permanent role equates to approximately £355/day contracting rate.

What is the median UK salary in 2026?

The median gross weekly earnings for full-time UK employees reached £766.60 in April 2025, representing £39,863 annually. London significantly exceeds this at £46,800 median, whilst the North East lags at £32,960.

What is the median US salary in 2026?

The median annual wage in the US is approximately $62,192, with average wages around $70,000. Salaries vary significantly by state, ranging from $75,000+ in California and Connecticut to $45,000 in Mississippi.

How should overtime be calculated?

Standard overtime is 1.5× (time-and-a-half) the regular hourly rate. Some industries pay 2× for weekends or holidays. Calculate: Overtime Hours × Hourly Rate × Multiplier × 52 weeks for annual overtime income.

How do I compare job offers with different benefits?

Calculate total compensation: base salary + expected bonus + pension match value + healthcare value + holiday day value (daily rate × days). Two offers with different structures may have similar total value despite different base salaries.

What industries pay the highest salaries?

Technology (especially AI/ML), finance, healthcare (physicians), and legal services consistently rank highest. AI specialists currently command premiums of 30-50% above general tech roles. Healthcare professionals and corporate lawyers also earn well above median wages.