Take-Home Pay Calculator

Last updated: April 2026

Your Salary

Gross annual salary

Region

Student loan

Not sure which plan? Check your loan statement or student finance account.

Pension Contribution

Pension percentage

5% of salary

Relief at sourceMost workplace pensions use relief at source. Your pension provider adds 20% tax relief to your contributions automatically.

Take-Home Pay

Annual take-home: £27,669.60

£2,305.80

Monthly take-home

Weekly take-home: £532.11

Deductions Breakdown

Gross salary£35,000.00

Income tax-£4,136.00

National Insurance-£1,794.40

Pension contribution-£1,400.00

Student loan (No student loan)-£0.00

Take-home pay£27,669.60

Tax Rate Summary

Effective tax rate16.94%

Marginal tax rate28.00%

Personal allowance£12,570

Visual Breakdown

79%

12%

Navy: take-home payGold: income taxGrey: NI and pensionRed: student loan

Pension tax relief

Your £1,750.00 pension contribution only costs you £1,400.00 because the government adds £350.00 in tax relief.

Tax Band Breakdown

BandRateIncome in bandTax

Personal allowance0%£12,570£0.00

Basic rate20%£20,680£4,136.00

Higher rate40%£0£0.00

Additional rate45%£0£0.00

What would you take home at different salaries?

SalaryMonthlyTaxNIEffective

£25,000£1,730.80£2,236.00£994.4012.92%

£30,000£2,018.30£3,186.00£1,394.4015.27%

£35,000£2,305.80£4,136.00£1,794.4016.94%

£40,000£2,593.30£5,086.00£2,194.4018.20%

£50,000£3,168.30£6,986.00£2,994.4019.96%

£60,000£3,679.78£10,232.00£3,210.6022.40%

About this calculator

The Take-Home Pay Calculator estimates how much of your gross pay you keep after UK income tax, National Insurance, pension contributions, and student loan deductions. It is useful when comparing job offers, checking a pay rise, planning a salary sacrifice pension contribution, or understanding why your payslip is lower than your headline salary. The result focuses on regular employment income and shows the main deductions that usually explain the gap between gross salary and net pay.

Methodology

Take-home pay is calculated by applying the relevant tax bands and deductions to annual gross pay, then converting the result to the chosen pay period.

Taxable pay = gross pay - personal allowance - pension deductions
Net pay = gross pay - income tax - National Insurance - student loan - pension

How the calculator works

Enter your gross annual salary or pay period amount.
Choose the tax region if Scottish income tax rates apply.
Add pension contributions, student loan plan, and other relevant deductions.
The calculator estimates annual deductions and converts them to monthly, weekly, or yearly take-home pay.
Use the breakdown to see which deduction has the largest effect.

Worked examples

Basic salary estimate

Input: Salary GBP 35,000, no student loan, standard pension setting

Result: The calculator estimates income tax and National Insurance before showing monthly take-home pay.

Pay rise comparison

Input: Old salary GBP 40,000, new salary GBP 45,000

Result: The net increase is less than GBP 5,000 because income tax and National Insurance apply to the extra pay.

Student loan deduction

Input: Salary GBP 38,000 with a student loan plan selected

Result: Student loan repayments reduce monthly take-home pay once earnings exceed the plan threshold.

What take-home pay includes

Take-home pay is the amount that reaches your bank account after payroll deductions. A gross salary can look straightforward, but the net amount depends on tax code, income tax band, National Insurance, pension contributions, student loan plan, salary sacrifice, and sometimes benefits or deductions arranged through the employer.

The calculator is useful when comparing job offers because two roles with the same salary can produce different take-home pay if pension contributions, student loan deductions, or salary sacrifice arrangements differ.

Main payslip deductions

Most UK employees see several deductions between gross salary and net pay. Understanding each one makes payslips easier to check.

Income tax: Income tax is charged on taxable income after allowances. Scottish taxpayers may use different bands and rates for employment income.
National Insurance: Employee National Insurance is separate from income tax and is calculated using its own thresholds and rates.
Pension contributions: Workplace pension contributions reduce take-home pay, but the tax treatment depends on whether the scheme uses relief at source, net pay, or salary sacrifice.
Student loan repayments: Student loan deductions depend on the repayment plan and income above the plan threshold. They are not usually based on the loan balance month by month.

Why your payslip may differ from the calculator

Payroll systems can include emergency tax codes, benefits in kind, bonuses, back pay, unpaid leave, overtime, taxable expenses, court orders, cycle-to-work deductions, and employer-specific pension rules. Use the calculator as a strong estimate, then compare it with your payslip and HMRC tax account.

Understanding gross pay and net pay

Gross pay is the salary or wage before deductions. Net pay is what you actually receive after deductions. The difference between the two can be large, especially when income tax, National Insurance, pension, and student loan repayments all apply.

For budgeting, net pay matters more than headline salary. A pay rise can also push part of your income into a higher tax band or trigger deductions that were not previously due.

Take-home pay and pension choices

Pension contributions reduce current take-home pay but increase long-term retirement saving. Salary sacrifice can also reduce National Insurance in some cases, but it may affect salary-linked benefits, mortgage affordability calculations, statutory pay, or employer references. This is why pension method matters, not just contribution percentage.

Checking a pay rise or job offer

When comparing two job offers, compare monthly net pay, pension contribution, employer pension contribution, bonus structure, benefits, location costs, travel, childcare, and flexibility. A higher gross salary is not always a better financial outcome if costs and deductions rise too.

Pay frequency conversion

Salary and wage figures are often quoted in different periods. A job advert may show annual salary, a payslip may show monthly gross pay, and an hourly worker may think in weekly hours. Converting between periods requires a clear assumption about working weeks, working days, and paid leave.

Pay period	Common conversion from annual salary	Notes
Monthly	Annual salary / 12	Common for UK salaried employees
Weekly	Annual salary / 52	Useful for weekly budgeting
Daily	Annual salary / working days	Depends on contracted days and leave
Hourly	Annual salary / annual paid hours	Depends on weekly hours and paid time off

Salary, wage, contractor income, and benefits

A salary is normally a fixed annual amount paid regularly. A wage is often based on hours worked. Contractors and freelancers may charge day rates or hourly rates but usually need to cover unpaid holidays, sick days, pension, insurance, tax admin, equipment, and gaps between contracts.

Benefits also matter. Employer pension contributions, private medical cover, bonus, share schemes, paid leave, remote work, training, and flexibility can make two jobs with the same salary feel very different financially.

Common mistakes and edge cases

Using gross salary when you need monthly take-home cash flow.
Forgetting student loan, postgraduate loan, or pension deductions.
Ignoring Scottish tax bands where they apply.
Assuming bonuses are taxed the same as normal monthly pay in every payroll run.
Comparing job offers without considering pension contribution differences.

Limitations

This calculator provides an estimate only and is not financial or tax advice.

Actual payroll can vary because of tax codes, benefits in kind, salary sacrifice, bonuses, arrears, or employer-specific pension rules.
Check your payslip, HMRC account, or employer payroll team for official figures.

Frequently asked questions

Why is my take-home pay lower than expected?

Income tax, National Insurance, pension deductions, and student loan repayments can all reduce net pay.

Does the calculator include Scottish tax?

Use the Scottish option where available if Scottish income tax bands apply to your employment income.

Does pension contribution reduce tax?

Many pension contributions reduce taxable pay or receive tax relief, but the payroll treatment depends on the pension arrangement.

Can my tax code change the result?

Yes. Emergency tax codes, underpayments, benefits, and adjustments can change actual payslip deductions.

Is this the same as an income tax calculator?

No. Take-home pay combines income tax with other payroll deductions to estimate net pay.

Related calculators

Income Tax Calculator
Student Loan Repayment Calculator
Pension Tax Relief Calculator
Take-Home Pay Calculator

How is take-home pay calculated?

Your take-home pay is your gross salary minus income tax, National Insurance contributions, any pension contributions, and student loan repayments. Income tax is calculated on your salary above the personal allowance of £12,570. National Insurance is charged at 8% on earnings between £12,570 and £50,270, and 2% above that.

Why is Scottish income tax different?

Scotland has its own income tax rates set by the Scottish Parliament, which differ from the rest of the UK. Scotland has more bands, including a starter rate of 19%, an intermediate rate of 21%, and a higher rate of 42%. National Insurance rates are the same across the UK.

What is the personal allowance?

The personal allowance is the amount of income you can earn each year before paying income tax. In 2025/26 it is £12,570. If your income exceeds £100,000, your personal allowance is gradually reduced by £1 for every £2 earned above £100,000, and is fully withdrawn at £125,140.

How does pension tax relief work?

Most workplace pensions use the relief at source method. You contribute from your net pay, and your pension provider claims 20% basic rate tax relief from HMRC and adds it to your pot. Higher rate taxpayers can usually claim extra relief through self-assessment.

Which student loan plan am I on?

Plan 1 applies if you started university before September 2012. Plan 2 applies if you started between September 2012 and July 2023. Plan 5 applies if you started from August 2023 onwards. Scottish students repay under Plan 4, and postgraduate loans have separate terms.