What's My Take Home

Compare Two Salary Offers

2026/27

Enter two job offer salaries side by side and see the real difference in take-home pay after income tax, National Insurance, pension, and student loan deductions.

Updated for the 2026/27 tax year · Last reviewed April 2026

Why Headline Salary Isn't Everything

When evaluating two job offers, the gross salaries are only the starting point. Your actual take-home pay is shaped by your tax code, student loan plan, pension contributions, and which income tax bands you fall into.

A jump from £45,000 to £55,000 sounds like a £10,000 raise, but once higher-rate income tax (40%), National Insurance (2% above £50,270), and continued student loan repayments are factored in, the real gain in monthly pay can be under half that figure.

Equally, a job with a lower salary but a generous employer pension scheme, private medical cover, and no commuting costs can easily be worth more in total compensation than a better-looking pay packet. Use this calculator to understand the cash take-home position, then weigh the non-cash benefits separately.

Key Things That Affect the Comparison

  • Tax bands: income above £50,270 is taxed at 40% rather than 20%. If Offer B crosses this threshold and Offer A does not, the additional take-home shrinks substantially.
  • Personal allowance taper: above £100,000, your £12,570 tax-free allowance is reduced by £1 for every £2 earned over the threshold. This creates a 60% effective marginal rate between £100,000 and £125,140.
  • Pension contributions: salary sacrifice pensions reduce both income tax and National Insurance, making them more tax-efficient than personal contributions. Use the PAYE calculator to model this in detail.
  • Student loan plans: different plans have different thresholds and repayment rates. A salary that crosses a threshold triggers repayments that reduce your take-home further.
  • Tax code: a non-standard tax code (e.g. BR, D0, or an adjusted 1257L) changes your personal allowance and therefore your income tax. Always enter your actual tax code from your P45 or payslip.
  • Bonus potential: if one offer includes a significant annual bonus, use our bonus tax calculator to see what you actually keep after tax. If a role pays an hourly rate rather than a fixed salary, convert it to an annual equivalent first.

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Frequently Asked Questions

Why does the higher salary not always mean significantly more take-home pay?
UK income tax uses progressive bands. As your salary rises into the higher-rate (40%) or additional-rate (45%) bands, a larger share of each extra pound is lost to tax and National Insurance. Add pension contributions and student loan repayments and the net gain can be much smaller than the headline difference suggests.
Does a different pension contribution change the comparison?
Yes, and significantly. A job with a 10% employer pension contribution can be worth thousands of pounds per year more than one with 3%, even if the gross salaries are identical. Use the Pension % field to model your actual employee contribution; employer contributions are not deducted from your take-home but are real compensation worth considering.
What is the effective tax rate shown in the comparison?
The effective tax rate is the percentage of your gross salary paid in income tax only (not National Insurance). A lower effective rate means you keep a higher proportion of your salary. The marginal rate is what you pay on the next pound earned, which is useful for understanding how a bonus or pay rise will be taxed.
How does student loan repayment affect the salary comparison?
Student loan repayments are calculated as a percentage of earnings above a threshold, not a flat monthly fee. A salary that crosses the threshold (e.g. Plan 2 at £27,295) will trigger repayments. If Offer B is slightly above the threshold and Offer A is below it, the take-home difference will be smaller than expected.
Should I factor in benefits, bonuses, or location when comparing offers?
Absolutely. This calculator focuses on salary and direct deductions. Real-world comparison should also include employer pension contributions, private medical insurance, annual bonus potential, share schemes, remote working savings (commuting costs), and cost-of-living differences between locations. A lower gross salary in a cheaper city can easily outperform a higher London salary.