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
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.