Take-home pay is your gross salary minus income tax, employee National Insurance, any student loan repayments and your pension contribution. On a £50,000 salary in England with a 5% net pay pension, the 2026/27 estimate is about £37,520 a year, or £3,127 a month. The steps below show how each deduction is built up.
Step 1: start with gross pay
Gross pay is what your contract states before deductions. If you know an hourly rate rather than a salary, convert it first. Multiply the rate by weekly hours and by the weeks you work. For example £15 an hour for 37.5 hours over 52 weeks gives £29,250 a year. The Hourly rate to salary does this for you, and Hourly rate to salary, and how to work out overtime covers overtime and unpaid weeks.
Step 2: take off your pension contribution
How your pension comes out matters, because it changes the amount that tax and NI are worked out on. In short:
- Net pay: taken before income tax, NI still due on the full amount.
- Salary sacrifice: taken before income tax and NI.
- Relief at source: taken after tax, and the provider adds basic-rate relief.
Net pay, salary sacrifice or relief at source: how pension contributions affect your pay compares them in detail. Ask payroll which method your employer uses.
Step 3: work out income tax
Subtract the £12,570 Personal Allowance from your taxable pay, then apply the bands: 20% on the next £37,700 and 40% above that for England, Wales and Northern Ireland. Scotland has its own bands. The full tables are in UK income tax explained: bands, allowance and how it's worked out.
Step 4: work out National Insurance
Employee NI is 8% on earnings between £12,570 and £50,270 and 2% above, as explained in National Insurance for employees: what you pay and why.
Step 5: add student loan repayments
If you have a student loan, you repay 9% of income above your plan threshold: Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795 and Plan 5 £25,000. A postgraduate loan is 6% above £21,000. See Student loan repayments explained: plans, thresholds and what you'll pay.
Worked example: £50,000, England, 5% pension (net pay)
| Item | Per year |
|---|---|
| Gross salary | £50,000 |
| Pension (5%, net pay) | £2,500 |
| Income tax | £6,986 |
| National Insurance | £2,994 |
| Take-home pay | £37,520 |
The checks are straightforward. Income tax: (£50,000 − £2,500 − £12,570) × 20% = £6,986. NI: (£50,000 − £12,570) × 8% = £2,994.40, since net pay does not lower NI. Take-home: £50,000 − £2,500 − £6,986 − £2,994.40 = £37,519.60, which the calculator rounds to £37,520.
Without the pension, the same salary leaves £39,520 a year, or about £3,293 a month. In other words the 5% pension costs about £2,000 of take-home pay rather than £2,500, because of the tax relief.
What the estimate leaves out
Our calculator uses standard 2026/27 rates and a standard tax code. It does not include bonuses, taxable benefits such as a company car, other income, Gift Aid, or charges that vary by employer. Your payslip is the final word, so compare any estimate with it. If numbers differ, a different tax code is the most common reason.
Note: This is general information, not tax or financial advice. The tool gives estimates only.
A quick shortcut for a rough figure
If you only need a ballpark, a useful rule for a basic-rate taxpayer in England is that about 28p of each extra pound goes on income tax and NI together (20% plus 8%), so you keep about 72p. Above £50,270 you pay 40% tax and 2% NI, so you keep about 58p of each extra pound. These marginal rates ignore student loans, which take a further 9p on each pound above your threshold, and pension contributions.
The shortcut does not replace a proper calculation, because the first £12,570 is untaxed and the average rate is lower than the marginal rate. It does explain why a pay rise can feel smaller than expected after deductions.
Monthly and weekly figures
Divide the annual take-home by 12 for a monthly estimate or by 52 for weekly. For £50,000 with no pension, that gives about £3,293 a month and £760 a week. Your actual payslip may differ slightly because of the pay date, tax code adjustments and rounding.
Try the calculator
Enter your salary, region, student loan plan and pension method in the UK take-home pay to see your take-home pay per year, month, week and day. If you are paid by the hour, begin with the Hourly rate to salary.
Open the free UK take-home pay
Worked example 2: £35,000 with a Plan 2 student loan
Now a lower salary with a student loan and no pension. These figures come from our take-home pay calculator, for England, Wales or Northern Ireland in 2026/27.
| Item | Per year |
|---|---|
| Gross salary | £35,000 |
| Income tax | £4,486 |
| National Insurance | £1,794 |
| Student loan (Plan 2) | £505 |
| Take-home pay | £28,214 |
Here is how each line is built, so you can repeat it by hand:
- Income tax: (£35,000 − £12,570) × 20% = £22,430 × 20% = £4,486.
- National Insurance: £22,430 × 8% = £1,794.40.
- Student loan: (£35,000 − £29,385) × 9% = £5,615 × 9% = £505.35.
- Take-home: £35,000 − £4,486 − £1,794.40 − £505.35 = £28,214.25, shown as £28,214.
That is about £2,351 a month. Notice that the student loan is only taken on the slice above the threshold, so the first £29,385 carries no repayment. Different plans have different thresholds, so Student loan repayments explained: plans, thresholds and what you'll pay is worth reading if you are unsure which plan you are on.
How the pension method changes the result: £80,000 compared
At higher salaries the way a pension is paid makes a visible difference. Here is an £80,000 salary in England with a 5% contribution (£4,000), calculated three ways:
| Method | Income tax | National Insurance | Take-home per year |
|---|---|---|---|
| Net pay | £17,832 | £3,611 | £54,557 |
| Salary sacrifice | £17,832 | £3,531 | £54,637 |
| Relief at source | £19,432 | £3,611 | £53,757 |
Net pay and salary sacrifice are close, with salary sacrifice £80 ahead because National Insurance is not charged on the sacrificed amount. Relief at source looks £800 worse, but that is because higher-rate taxpayers using this method must claim the extra relief back, either through a tax return or by asking HMRC. Add the £800 and the position matches net pay at about £54,557. Whether salary sacrifice suits you can also depend on mortgage applications, benefits and statutory pay, so check with your employer. The full comparison is in Net pay, salary sacrifice or relief at source: how pension contributions affect your pay.
Check your estimate against a real payslip
An estimate is only useful if it lines up with the payslip. Compare these items in order:
- Gross pay for the period. If it differs from salary divided by 12, look for overtime, a bonus or unpaid leave.
- Tax code. The standard code is based on the £12,570 allowance. A different code changes tax even when the salary is the same.
- Income tax and NI figures. Payslips usually show both for the month and the year to date.
- Pension. Check the percentage and whether it is applied to all of your pay or just a part, since some schemes use qualifying earnings only.
- Student loan. Confirm the plan type with your payslip or the Student Loans Company.
- Other deductions. Cycle-to-work schemes, union fees, charity giving and workplace benefits all reduce net pay.
A difference of a few pounds is often down to rounding or the pay date. A difference of tens or hundreds usually means a different tax code or an item the calculator does not know about.
Common mistakes when working out take-home pay
- Taking 20% off the whole salary instead of only the part above the Personal Allowance.
- Forgetting that National Insurance is a separate charge, with its own thresholds, from income tax.
- Treating pension as free. It lowers take-home pay, though tax relief means the cost is smaller than the amount going in.
- Using last year’s figures. Bands, allowances and student loan thresholds are set for each tax year, so check that you are using 2026/27 rates.
- Dividing a yearly figure by four to get “monthly” pay rather than by twelve.
- Ignoring that being paid every four weeks gives 13 payments a year, not 12.
When to check with an official source
Use your payslip, your HMRC online account or GOV.UK if your tax code looks odd, if you have two jobs, or if you receive taxable benefits. For loan questions, the Student Loans Company is the authority, and for pension rules your scheme provider can confirm how contributions are taken. Our figures are for planning, not payroll.
Frequently asked questions
What is the difference between gross and net pay?
Gross pay is what you earn before deductions. Net pay, or take-home pay, is what reaches your bank account after tax, NI, pension and any student loan.
Why is my monthly pay different from salary divided by twelve?
Gross salary divided by 12 is the monthly gross figure. Take-home will be lower after deductions, and months with bonuses or a changed tax code may vary.
Does the calculator work for weekly or monthly pay?
Yes, you can enter your salary as a yearly, monthly or weekly figure, and it converts to annual amounts for the estimate.
Is Scottish take-home pay different?
Usually yes, because Scotland has different income tax bands. At £50,000 our estimate is about £38,024 in Scotland against £39,520 elsewhere, before any pension.
Why is my take-home pay lower in my first month than expected?
A new employer may use an emergency tax code until HMRC supplies yours, which can mean too much tax is taken at first. It is usually corrected later, so check your code on the payslip and with HMRC if it stays wrong.
Does a pay rise ever leave me worse off?
Not on income tax and NI alone, because only the extra pay is taxed at higher rates. Odd results can arise around £100,000, where the Personal Allowance starts to shrink, and where benefits are withdrawn.
How do I work out take-home pay from an hourly wage?
Turn the wage into an annual figure by multiplying hourly rate, weekly hours and weeks worked, then use the calculator on that total. Hourly rate to salary, and how to work out overtime covers overtime and holiday pay.
Is take-home pay the same as net pay?
Yes. Net pay is what you receive after deductions, while gross pay is the figure before them.