What this estimator works out
This estimator takes a gross annual salary and works out a broad monthly take-home figure, showing income tax, National Insurance and pension contributions separately so you can see where the money goes.
It covers the three deductions that affect almost everyone. It does not attempt to model the long tail of adjustments — tax codes, benefits in kind, student loans, salary sacrifice arrangements or Scottish income tax bands — so treat it as a planning figure rather than a prediction of your payslip.
Enter your details
Before you enter your figures
- Use gross annual salary before any deductions. If you are paid hourly, convert first with the Hourly to Salary Calculator.
- Check your Personal Allowance. £12,570 is the standard figure, but it is reduced for high earners and may be adjusted by your tax code if you have untaxed income or owe tax from a previous year.
- Enter the pension percentage you contribute, not the combined figure including your employer.
- If you are a Scottish taxpayer, this estimate will be wrong. Scotland sets its own income tax bands and rates.
A standard code such as 1257L means the full Personal Allowance. Codes ending BR, D0 or K, or carrying a lower number, mean something has changed — a second job, a company benefit, or an underpayment being collected. If your take-home differs from an estimate, the tax code is usually the reason.
How this calculator works
The estimator works down the payslip in the order the deductions are actually applied:
Taxable income = salary − tax-free allowance
Tax = (taxable up to the basic band × 20%) + (anything above × 40%)
NI = (earnings between the thresholds × 8%) + (earnings above the upper limit × 2%)
Take-home = salary − tax − NI − pensionIncome tax and National Insurance use different thresholds and are calculated independently — a common source of confusion. Tax is charged on income above your Personal Allowance; National Insurance is charged on earnings above the primary threshold and drops to a much lower rate above the upper earnings limit.
The bands and thresholds are editable fields rather than fixed values, so the tool still works after a Budget changes them.
Worked example: a £35,000 salary
Using the default figures — £35,000 gross, a £12,570 allowance, a 5% pension contribution and the standard bands:
- Taxable income: £35,000 − £12,570 = £22,430, all within the basic rate band
- Income tax: £22,430 × 20% = £4,486
- National Insurance: (£35,000 − £12,570) × 8% = £1,794.40
- Pension: £35,000 × 5% = £1,750
- Take-home: £35,000 − £4,486 − £1,794.40 − £1,750 = £26,969.60, or £2,247.47 a month
The deductions total £8,030, or about 23% of gross pay. Note that the pension contribution is not lost — it is money moved rather than money spent, and in most workplace schemes it attracts tax relief and an employer contribution on top, which is why it appears separately here rather than being lumped in with tax.
Common mistakes
- Budgeting on gross salary. Roughly a quarter of a typical salary never reaches your account.
- Assuming the full Personal Allowance applies. It tapers away above £100,000 and is often adjusted by your tax code.
- Using this for Scottish income tax. Scotland has different bands and more of them.
- Forgetting student loan repayments. They are a separate deduction on top of everything shown here.
- Treating a bonus month as typical. PAYE can over-deduct in a month with unusual pay, and it usually evens out later in the year.
Frequently asked questions
Why does my actual payslip differ from this?
Most often the tax code. Beyond that, the usual causes are student loan deductions, salary sacrifice arrangements, benefits in kind such as a company car or private medical cover, a second job, or the fact that PAYE calculates tax cumulatively across the year rather than treating each month independently. Differences of a few pounds are normal; differences of a few hundred are worth investigating.
Does this include student loan repayments?
No. Use the Student Loan Repayment Estimator separately and subtract that figure. Postgraduate loans are repaid at the same time as undergraduate ones and need calculating separately again.
How does salary sacrifice change the result?
It reduces your gross salary before tax and National Insurance are calculated, so you save both on the sacrificed amount. That makes pension contributions made this way noticeably cheaper in take-home terms. The Salary Sacrifice Benefit Checker shows the effect.
Why are the tax and National Insurance thresholds different?
They are separate systems with separate histories. Income tax is charged on income above the Personal Allowance; National Insurance is charged on earnings above the primary threshold and is not payable at all once you reach State Pension age. Aligning them has been discussed for years but they remain distinct.
Is my salary information stored?
No. Everything you enter is processed in your browser and is never transmitted or retained as a record. Closing the tab discards it.
Related tools
References
- GOV.UK — current income tax rates, National Insurance thresholds and tax code guidance
- HM Revenue & Customs — your personal tax account, tax code checks and PAYE queries
- MoneyHelper — impartial guidance on payslips, deductions and workplace pensions
Sources are checked at publication and can change — how I choose and check references.