Compare Two Salaries Calculator
Compare the take-home pay of two salaries side by side — see what a pay rise or job move is really worth.
About this calculator
A £5,000 pay rise is not £5,000 in your pocket. Depending on where you sit in the tax bands, deductions can take anywhere from 28% to over 60% of each extra pound. This calculator runs two salaries through the full 2026/27 PAYE computation — income tax (including Scottish rates), National Insurance, pension and student loan — and shows the real difference in take-home, annually and monthly, plus how much of each extra gross pound you actually keep.
The formula
Worked example
Comparing £35,000 and £40,000 (England, no pension or loan):
- Take-home A ≈ £28,720, Take-home B ≈ £32,320
- Real difference ≈ £3,600/year (£300/month)
- You keep 72p of each extra £1 (20% tax + 8% NI)
Common mistakes
- Evaluating a job offer on gross salary alone when pension contributions differ between employers.
- Ignoring the 60% effective tax zone between £100,000 and £125,140 caused by the personal allowance taper.
- Forgetting a student loan adds 9% to the marginal deduction on everything above your plan's threshold.
Frequently asked questions
Assumptions & limitations
Both salaries are computed with identical settings (pension %, student loan, residency) using 2026/27 rates and a standard tax code.
Sources & verification
- Income Tax rates and Personal Allowances — GOV.UK
- Scottish Income Tax — GOV.UK
- National Insurance rates and categories — GOV.UK
- Repaying your student loan: how much you repay — GOV.UK / Student Loans Company
All sources last accessed 24 July 2026.
Spotted an error or an out-of-date figure? Report it — corrections are prioritised over all other work (see our corrections policy).