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Pay Rise Calculator

A 5% rise doesn't mean 5% more in your bank account. Enter your current salary and the rise to see the difference in take-home pay, and how much the Treasury keeps.

Tax year 2026/27 · Estimates, not personal tax advice

£
Rise as
%

Extra take-home pay

£120.00 a month

£1,440 a year from a £2,000 gross rise (72% kept)
NowAfter riseChange
Gross salary£40,000£42,000£2,000
Income Tax£5,486£5,886£400
National Insurance£2,194£2,354£160
Net per year£32,320£33,760£1,440
Net per month£2,693£2,813£120

Rates and rules used

Tax year 2026/27

Default year 2026/27 (6 April to 5 April). 2025/26 and 2024/25 figures are kept for comparison where the calculator offers a year choice.

Independent site, not affiliated with HMRC. Always check GOV.UK for the latest figures.

How this calculation works

  1. 01Calculate take-home on your current salary.
  2. 02Recalculate on the new salary.
  3. 03Show the change per year and per month.

Real payroll can differ because tax and NI are worked out per pay period, and your tax code may include adjustments HMRC hasn't told you about. See our methodology.

Negotiating with net figures

If you're weighing a new job, compare take-home pay, not headline salaries. A £5,000 rise that crosses into the higher rate might add less than £250 a month.

Understanding your pay rise calculator result

The useful figure is the increase in net pay, not simply the gross percentage. The calculator compares the old and new salary under the same tax assumptions so the extra deductions are visible.

Evaluating a job offer

Scenario: Enter current salary and the proposed rise. Keep region, pension and student loan settings consistent with your expected new role.

How to use the result: Use the monthly net increase to weigh commuting, childcare or benefit changes. A higher gross offer can still leave little extra cash if new costs are ignored.

Details to check before relying on the estimate

  • Check whether the rise changes pension contributions quoted as a percentage.
  • Employer benefits and travel costs are outside the tax comparison.
  • A rise near a tax boundary affects only the portion above it.

Putting the estimate into perspective

Compare the net increase with any new recurring costs of the role. A permanent rise can be worth less in a household budget if travel or childcare costs rise alongside it.

Frequently asked questions

What would a £10,000 pay rise mean for my take-home pay?

For a basic-rate taxpayer who stays in that band, around £7,200 a year more. If the rise pushes you into the 40% band, it could be closer to £5,800.

Check it on GOV.UK: Income Tax rates and allowances (opens GOV.UK in a new tab) · National Insurance rates and category letters (opens GOV.UK in a new tab)

Why is my take-home increase smaller than my pay rise?

Extra income is taxed at your marginal rate, so part of the rise goes to Income Tax and National Insurance. Student loan repayments also increase if you are above the threshold.

Check it on GOV.UK: Repaying your student loan (opens GOV.UK in a new tab) · National Insurance rates and category letters (opens GOV.UK in a new tab)

Can a pay rise ever leave me worse off?

It can feel that way at certain income levels, where allowances are withdrawn or benefits are lost, for example around the Personal Allowance taper. Compare both figures in the calculator before deciding.

Check it on GOV.UK: Income Tax rates and allowances (opens GOV.UK in a new tab)

Related calculators

Related guides

  • UK Income Tax Bands 2026/27 — The 2026/27 Income Tax bands for England, Wales, Northern Ireland and Scotland, with worked examples showing how band-by-band tax is calculated.
  • How Bonuses Are Taxed — How UK bonuses are taxed through PAYE, why the payslip looks heavy, and how sacrificing a bonus into a pension works.