Calculate your take-home pay after all deductions including tax, National Insurance, pension, student loan, and salary sacrifice benefits.
This calculator provides estimates for guidance only. Actual deductions depend on individual circumstances and employer arrangements. Always verify with HMRC or a qualified tax adviser.
Your net income -- the money that actually reaches your bank account -- can be significantly different from the gross salary figure in your employment contract. Between income tax, National Insurance, pension contributions, student loan repayments, and salary sacrifice benefits like childcare vouchers or cycle to work schemes, the gap between gross and net can be surprisingly large. For the 2026-27 tax year, a UK employee earning GBP 40,000 with a 5% pension contribution and a Plan 2 student loan will see total deductions of over GBP 10,000 -- bringing take-home pay to around GBP 29,700. Understanding this full deduction picture is essential for budgeting, financial planning, and evaluating whether salary sacrifice arrangements are worthwhile. This calculator captures every common deduction in one place, giving you a complete and accurate picture of your net income. It also shows your marginal tax rate -- the combined tax and NI you would pay on the next pound of earnings -- which is particularly important for those in the GBP 100,000 to GBP 125,140 range where the effective marginal rate reaches 62% due to the Personal Allowance taper.
To calculate your net income: 1. Enter your annual gross salary from your employment contract. 2. Enter your PAYE tax code (found on your payslip or P60). The standard code is 1257L, which provides a GBP 12,570 Personal Allowance. 3. Enter your pension contribution as a percentage. This calculator assumes salary sacrifice, which reduces your taxable income and NI liability. The default is 5%, which is the minimum automatic enrolment rate. 4. Select your student loan repayment plan if applicable. Student loan repayments are based on your gross salary (not adjusted for salary sacrifice). 5. In the advanced options, enter any additional salary sacrifice deductions such as childcare vouchers or cycle to work scheme payments. 6. Review the results showing your gross salary, adjusted gross (after salary sacrifice), each deduction category, and your final net income at annual, monthly, and weekly levels. The marginal rate tells you how much of your next pound of earnings goes to tax and NI.
The net income calculator processes deductions in the correct order: First, salary sacrifice items are deducted from your gross salary. This includes pension contributions, childcare salary exchange, and cycle to work deductions. The result is your adjusted gross -- the figure used for income tax and NI calculations. Next, income tax is calculated on the adjusted gross using your tax code. The standard 1257L code provides a GBP 12,570 Personal Allowance, with rates of 20% (basic), 40% (higher), and 45% (additional). If your adjusted gross exceeds GBP 100,000, the Personal Allowance is tapered by GBP 1 for every GBP 2 over GBP 100,000, creating an effective 60% tax rate in this band. National Insurance is calculated on the adjusted gross at 8% between GBP 12,570 and GBP 50,270, and 2% above GBP 50,270. Student loan repayments are an exception -- they are calculated on your original gross salary, not the adjusted figure. Plan 1: 9% over GBP 24,990. Plan 2: 9% over GBP 27,295. Plan 4: 9% over GBP 31,395. Plan 5: 9% over GBP 25,000. Postgraduate: 6% over GBP 21,000. Your net income is: gross salary minus pension minus other salary sacrifice minus income tax minus NI minus student loan. The marginal rate combines the income tax rate and NI rate on your next pound. It is 28% for basic rate taxpayers (20% + 8%), 42% for higher rate (40% + 2%), 47% for additional rate (45% + 2%), and 62% in the PA taper zone (60% + 2%).
Inputs: Annual salary: GBP 40,000, Pension: 5%, Student loan: Plan 2, Tax code: 1257L
Inputs: Annual salary: GBP 25,000, Pension: 0%, Student loan: None, Tax code: 1257L
Inputs: Annual salary: GBP 110,000, Pension: 10%, Student loan: None, Tax code: 1257L, Childcare: GBP 2,400, Cycle to work: GBP 1,000
This calculator uses 2026-27 tax year rates for England and Wales. Scottish taxpayers have different income tax bands. The pension contribution is assumed to be via salary sacrifice (pre-tax). If your pension contribution is made after tax (relief at source), the tax savings will differ. Student loan repayments are always based on gross salary regardless of salary sacrifice arrangements. If you have both undergraduate and postgraduate loans, both repayment amounts apply simultaneously. Consult a qualified tax adviser for complex situations.