Take-home pay calculator
Enter your salary before tax and see exactly what lands in your bank account, with a clear breakdown of every deduction. UK 2025/26 tax rates.
Most people have a rough idea of their salary but have never worked out what actually hits their bank account each month. Now you know. The gap between gross and take-home is often bigger than people expect - which is exactly why understanding it matters when you are planning a mortgage, a budget, or deciding whether a pay rise is actually worth taking.
Personal allowance
The first £12,570 of your salary is tax-free. This is your personal allowance. Above that, income tax kicks in at 20% for most people.
National Insurance
NI is separate from income tax. You pay 8% on earnings between £12,570 and £50,270 and 2% above that. It builds your State Pension entitlement.
Higher rate tax
Earnings above £50,270 are taxed at 40%. Only the portion above the threshold is taxed at the higher rate - not your whole salary.
Why use this figure?
Mortgage lenders often ask for your take-home pay to assess affordability. Knowing your real net figure helps you budget accurately for a home purchase.
Please note: This calculator uses 2025/26 UK income tax and National Insurance rates for England, Wales and Northern Ireland. Scottish income tax rates differ. Results assume the standard personal allowance of £12,570 and standard tax code 1257L. Student loans, pension contributions and other deductions are not included here. This calculator is for guidance only and is not financial or tax advice.
Calculator results are estimates based on the information you enter and the assumptions built into the tool. They are illustrative only and should not be relied upon as accurate projections. Rates, thresholds and rules change regularly; always verify figures with an appropriate professional or official source before acting on them.
What does the take-home pay calculator do?
The take-home pay calculator works out your net monthly income after all deductions – income tax, National Insurance, pension contributions, and student loan repayments where applicable. It uses current UK tax rates, NI thresholds, and student loan repayment rules to give an accurate monthly take-home figure for any gross annual salary.
This is the number you actually have available to spend, save and invest each month – not the headline salary, which is the gross amount before deductions.
How to use this calculator
Gross annual salary: Enter your total annual salary before any deductions. Include any guaranteed allowances that are paid through payroll.
Pension contribution: Enter your employee pension contribution percentage. The calculator deducts this before calculating income tax (for salary sacrifice arrangements) or after income tax calculation (for relief-at-source arrangements). Toggle the method based on your pension’s structure.
Student loan plan: Select your student loan plan type if applicable. Plan 1, Plan 2 and Plan 4 have different repayment thresholds and rates. If you have no student loans, leave this unselected.
Tax code: The standard tax code is 1257L. If you have a different code (due to taxable benefits, underpaid tax, or other adjustments), enter it here for a more accurate result.
Reading the result: The calculator shows your monthly take-home pay and a breakdown of each deduction – income tax, NI, pension, and student loan — so you can see exactly where each pound of gross salary goes.
How the deductions work
Income tax is calculated in bands. The first £12,570 (the personal allowance) is tax-free; the next band (up to £50,270) is taxed at 20%; the portion between £50,271 and £125,140 is taxed at 40%; and anything above £125,140 is taxed at 45%. Between £100,000 and £125,140, the personal allowance is tapered, creating an effective 60% marginal rate.
National Insurance for employees is charged at 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270 (2024/25 rates).
Pension contributions through salary sacrifice reduce gross pay before NI is calculated – saving both income tax and NI. Standard contributions (relief at source) are deducted from post-NI pay, and tax relief is added by the pension provider.
Frequently asked questions
Why does my payslip not match the calculator? Differences can arise from a non-standard tax code, employer benefits taxed through payroll (private medical, company car), a different pension contribution method than assumed, or mid-year tax adjustments. If the discrepancy is significant, check your tax code with HMRC at gov.uk/check-tax-current-year.
What is the difference between gross and net salary? Gross salary is the total agreed pay before any deductions. Net salary (take-home pay) is what remains after income tax, NI, pension and other deductions. The two figures can differ substantially – a £40,000 gross salary produces approximately £31,400 net in 2025 under standard conditions.
How does a pay rise affect my take-home? A pay rise increases gross salary, but not all of the increase reaches take-home pay – the additional amount is taxed at your marginal rate and also attracts NI. Use the calculator with your new salary to see the exact change in take-home pay. For salary sacrifice pension contributions, a pay rise is an opportunity to increase contributions while maintaining similar take-home pay.
How does salary sacrifice affect take-home pay compared to a standard contribution? Salary sacrifice saves both income tax and National Insurance on the sacrificed amount, producing a higher take-home than a standard (relief at source) contribution of the same amount. The calculator allows you to compare both methods for any contribution amount.
The information on this site is for educational and informational purposes only. Nothing on Be More Peter constitutes financial advice, and nothing should be treated as such. The calculators, articles and tools on this site are designed to help you understand financial concepts and run indicative numbers - they are not a substitute for professional advice tailored to your specific circumstances. Before making any financial decision - including decisions about mortgages, pensions, investments, savings or insurance — you should seek independent financial advice from a qualified adviser who is authorised and regulated by the Financial Conduct Authority (FCA). Calculator results are estimates based on the information you enter and the assumptions built into the tool. They are illustrative only and should not be relied upon as accurate projections. Rates, thresholds and rules change regularly - always verify figures with an appropriate professional or official source before acting on them. Be More Peter is not authorised or regulated by the FCA. The content on this site does not constitute a financial promotion.
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