Tax & Income
Salary Comparison Calculator
Compare two salaries or job offers side-by-side, including bonus, pension, income tax and exact take-home pay. See which package is really worth more.
Your details
A Current / Scenario A
B New offer / Scenario B
Shared settings
Your results
Scenario B Pays £6,840 More Per Year
Take-home difference
+£6,840
B vs A · per year
Total package difference
+£10,300
Incl. bonus & employer pension
- Scenario A take-home
- £2,573/mo
- Scenario B take-home
- £3,143/mo
- Effective tax rate (A / B)
- 17.8% / 19.6%
- Take-home pay (A → B)
- £30,880 → £37,720
Breakdown
2026/27 · Annual figures
| Item | A £40,000 | B £50,000 | Diff |
|---|---|---|---|
Gross salary | £40,000 | £50,000 | +£10,000 |
Bonus Annual | £0 | £0 | +£0 |
Employer pension 3% / 3% | £1,200 | £1,500 | +£300 |
Total package Gross + bonus + employer pension | £41,200 | £51,500 | +£10,300 |
Income tax | £5,086 | £6,986 | +£1,900 |
National Insurance | £2,034 | £2,794 | +£760 |
Employee pension 5% / 5% | £2,000 | £2,500 | +£500 |
Student loan | £0 | £0 | +£0 |
Take-home pay £2,573/mo vs £3,143/mo | £30,880 | £37,720 | +£6,840 |
Effective tax rate A
17.8%
Effective tax rate B
19.6%
Difference
+1.8%
How much of a pay rise do you actually keep?
When you receive a pay rise, you don't keep 100% of the increase. The additional earnings are taxed at your marginal rate, the rate that applies to the top slice of your income. For most UK earners in 2026/27:
- Basic rate (20% IT + 8% NI): earnings between £12,570 and £50,270. You keep roughly 72p of every extra £1.
- Higher rate (40% IT + 2% NI): earnings between £50,270 and £125,140. You keep roughly 58p of every extra £1.
- Additional rate (45% IT + 2% NI): earnings above £125,140. You keep roughly 53p of every extra £1.
Why total package matters more than salary
A job offering £48,000 with a £3,000 bonus, 5% employer pension and salary sacrifice may easily beat a £52,000 offer with no bonus, 3% employer pension and a relief-at-source scheme. The total package row adds gross salary, bonus and employer pension. This is the true cost to the employer and the fairest comparison between two offers.
Pension scheme differences
The pension scheme type affects your take-home pay even at the same contribution rate:
- Salary sacrifice: contribution reduces taxable pay, saving income tax and NI. Most tax-efficient.
- Net pay: contribution reduces taxable income but NI is paid on the full salary.
- Relief at source: you contribute from net pay; the provider claims 20% basic rate relief. No NI saving.
Want a full salary breakdown?
Use the Income Tax Calculator for a detailed breakdown including tax bands, NI thresholds and pension details. Or the Salary Sacrifice Calculator to optimise your contributions.
Frequently asked questions
How much of a pay rise do I actually take home?
It depends which tax band your extra earnings fall into. At the basic rate (20% income tax + 8% NI) you keep about 72p per extra pound. At the higher rate (40% income tax + 2% NI) you keep about 58p. If you are on salary sacrifice, your pension contribution also reduces the taxable amount further. This calculator shows the exact figure for your specific salaries.
Should I include employer pension when comparing job offers?
Yes. Employer pension contributions are part of your total compensation and represent real money going into your pension pot. A job with a lower salary but a higher employer pension contribution may be worth more overall. The Total package row in this calculator adds gross salary, bonus and employer pension together so you can compare like for like.
How does salary sacrifice pension affect take-home pay?
Salary sacrifice reduces your taxable pay before income tax and National Insurance are calculated. This means you save both income tax and NI on the pension contribution, so the real cost to your take-home is less than the contribution percentage suggests. A 5% salary sacrifice contribution on a £40,000 salary costs you around £1,340 in take-home pay, not £2,000, because of the tax and NI savings.
Related tools & guides
Sources & methodology
Built and maintained by Tim, a personal finance enthusiast (not a financial adviser). Last reviewed April 2026. Rates and thresholds come from official UK government publications.
- HMRC: Income Tax rates and allowances · Official rates, bands and thresholds
- GOV.UK: National Insurance rates · Employee and employer NI rates
- Scottish Government: Income Tax · Scottish income tax rates and bands
- The Pensions Regulator: Auto-enrolment · Qualifying earnings and contribution thresholds
- GOV.UK: Tax on your private pension · Tax relief rules and annual allowances
- HMRC: Pension schemes · Salary sacrifice and pension scheme types
Figures are estimates only. This is not financial or tax advice. For help with your specific situation, speak to HMRC or a qualified adviser.