Payroll Calculator
Your net pay = Gross salary minus income tax, National Insurance, pension, and student loan deductions. Employer cost = Gross salary plus employer NI and pension contributions.
How much will your payroll deductions be? This calculator estimates income tax, National Insurance, pension, and student loan deductions from your salary, plus the total cost to your employer.
This is an estimate — exact payroll results depend on your tax code, pay period, pension scheme, benefits in kind, and current HMRC rules.
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What this calculator does
This calculator estimates the key deductions from a UK employee’s pay: income tax, employee National Insurance, pension contributions, and student loan repayments. It also estimates the total employer cost including employer NI.
Who it is for
Employees wanting to understand their payslip, employers estimating staff costs, job seekers comparing salary offers, and anyone budgeting based on net pay.
How to use it
Enter your salary and select the pay frequency. Set your pension contribution percentage, student loan plan if applicable, and any annual bonus. Click 'See My Result' to see the full breakdown.
How the calculation works
Income tax is calculated using 2025/26 rates: 20% basic (up to £37,700 above personal allowance), 40% higher, 45% additional. Employee NI: 8% on earnings between £12,570 and £50,270, 2% above. Employer NI: 13.8% on earnings above £5,000. Personal allowance (£12,570) tapers above £100,000.
Worked example
Annual salary £35,000 with 5% pension: Pension = £1,750. Taxable = £33,250, after £12,570 personal allowance = £20,680 at 20% = £4,136 tax. Employee NI on £35,000: £1,794. Net pay ≈ £27,320/year (£2,277/month). Employer cost ≈ £39,190/year including employer NI (£4,140) and pension.
Assumptions and limitations
- Uses 2025/26 tax year rates and thresholds
- Assumes standard 1257L tax code unless income exceeds £100,000
- Pension contribution is deducted before tax (salary sacrifice)
- Employer pension assumes 3% minimum auto-enrolment contribution where employee contributes 3%+
- Does not account for benefits in kind, salary sacrifice schemes, or Scottish/Welsh tax rates
- Student loan repayment uses standard thresholds and rates
Frequently asked questions
How do I calculate payroll deductions?
Deduct income tax (based on taxable income after personal allowance), employee NI (8% on earnings between £12,570-£50,270, 2% above), pension contribution, and any student loan repayment from your gross salary.
What is the difference between gross pay and net pay?
Gross pay is your total salary before any deductions. Net pay (take-home pay) is what you actually receive after income tax, National Insurance, pension, and other deductions are removed.
How much does an employer actually pay on top of salary?
Employers pay employer’s NI at 13.8% on earnings above £5,000 plus pension contributions (minimum 3% for auto-enrolment). For a £35,000 salary, employer cost is roughly £39,000-£40,000.
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Related guides
- How Payroll Deductions Work in the UK — Understand what comes out of your pay: income tax, National Insurance, pension, and student loan deductions explained.
- How to Calculate Your Freelance Day Rate — A practical guide to setting your day rate as a freelancer or contractor, including salary equivalence and market benchmarks.
- How Overtime Pay Works in the UK — Understand your overtime pay rights, how it is taxed, and how different multipliers affect your earnings.
- How Holiday Accrual Is Calculated in the UK — Learn how holiday builds up over a leave year and how to check how much you have accrued so far.
- Inside IR35 Explained: What UK Contractors Need to Know — A clear guide to working inside IR35, how it affects your take-home pay, and what it means for your contract.
- How Holiday Entitlement Works in the UK — A practical guide to understanding your statutory holiday entitlement as a UK worker, covering full-time, part-time, and irregular working patterns.
Sources and references
HMRC income tax rates (https://www.gov.uk/income-tax-rates), HMRC National Insurance rates (https://www.gov.uk/national-insurance-rates-letters), Auto-enrolment minimum contributions (https://www.thepensionsregulator.gov.uk/en/employers/new-employers/im-an-employer-who-has-to-provide-a-pension/declare-your-compliance/ongoing-duties-after-completing-your-declaration-of-compliance/check-your-pension-contributions-are-correct)
Last updated
Last reviewed: 2026-04-12.