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Salary Increase Calculator — Pay Rise After Tax & NI

A pay rise is rarely worth as much as the headline number. Enter your current salary and either a percentage rise, a pound amount or your new salary, and this calculator shows the real increase in take-home pay after Income Tax, National Insurance, pension and student loan deductions.

How to use the Salary Increase Calculator

  1. Enter your current annual salary.
  2. Choose whether you know the percentage rise, the pound amount or the new salary, and enter it.
  3. Select the tax year and where you live, and add pension or student loan details if they apply.
  4. Compare your take-home pay before and after, per year and per month.

Why you keep less than the headline rise

Most of a pay rise is taxed at your marginal rate. A basic-rate taxpayer in England keeps roughly 72p of each extra pound once 20% Income Tax and 8% National Insurance are taken. A higher-rate taxpayer keeps around 58p, and a student loan repayment reduces that further.

The calculator runs the full calculation twice — once for each salary — so the difference is exact for your situation rather than a rough guess.

Pay rises that cross a tax threshold

A rise that pushes you over £50,270 moves part of your pay into the higher-rate band, and one that takes you above £100,000 reduces your personal allowance. Both mean you keep a smaller share of the extra money, and a pension contribution or salary sacrifice can soften the effect.

Use the pension option to see how much of a rise you could keep by paying part of it into a workplace pension.

Assumptions & important information

  • Rates and thresholds shown are for the 2026/27 tax year and were last checked against GOV.UK on 2 November 2026.
  • Both salaries are calculated for a full tax year with the standard personal allowance and no tax code adjustments, bonuses or taxable benefits.
  • A percentage pension contribution rises with your salary; a pound amount stays the same.
  • Student loan repayments are 9% of pay above the plan threshold, and the threshold for the selected tax year is used.
  • This calculator gives estimates for information only. It is not financial, tax or legal advice — check important decisions with HMRC, your employer or a regulated adviser.

Ideas & examples

  • £40,000 to £42,000 (5% rise): Your take-home pay rises by £1,440 a year (£120.00 a month) — you keep about 72% of the extra £2,000.
  • £48,000 to £52,000: crossing the higher-rate threshold: Part of the rise is taxed at 40%, so you keep £2,638 of the extra £4,000 a year — 66%.
  • £98,000 to £105,000: the personal allowance reduction: You keep only £3,060 of the extra £7,000 (44%) because part of your allowance is withdrawn.

Frequently asked questions

How much of my pay rise will I keep?

It depends on your tax band, National Insurance and any student loan. This calculator shows the exact increase in take-home pay and the share of the rise you keep.

How do I calculate a percentage pay increase?

Divide the increase by your current salary and multiply by 100. For example, a rise from £40,000 to £42,000 is £2,000 ÷ £40,000 = 5%.

Does a pay rise affect my pension?

If your contribution is a percentage of salary, it rises with your pay. Tick the pension option and choose a percentage to see the effect on take-home pay.

Why is my increase smaller than expected?

Extra pay is taxed at your highest rate and also attracts National Insurance and student loan repayments, so the take-home increase is always smaller than the gross rise.

Can I compare a job offer with my current job?

Yes. Choose “New salary”, enter the offer figure and compare the take-home difference. Remember to compare benefits, pension and commuting costs too.

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