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Net Salary Formula:
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Net salary is the amount of money you take home after all deductions (like income tax and National Insurance) have been subtracted from your gross salary. It's the actual amount that will be paid into your bank account.
The calculator uses the simple formula:
Where:
Explanation: The calculator simply subtracts your tax and National Insurance contributions from your gross salary to show your take-home pay.
Details: Knowing your net salary helps with budgeting, financial planning, and understanding how much you can realistically save or invest each month.
Tips: Enter your gross salary (before deductions), income tax amount, and National Insurance contributions. All values must be in GBP and valid (positive numbers).
Q1: Where can I find my gross salary and deductions?
A: These amounts are shown on your payslip - gross salary is your total before deductions, while income tax and National Insurance are listed as separate deductions.
Q2: Why is my net salary important for savings?
A: Knowing your exact take-home pay helps you create a realistic savings plan based on what you actually have available after all deductions.
Q3: Are there other deductions not included here?
A: Yes, some people may have additional deductions like pension contributions, student loan repayments, or workplace benefits that would further reduce take-home pay.
Q4: How often should I check my net salary?
A: It's good practice to check whenever your salary changes, or at least annually to account for tax changes and plan your budget accordingly.
Q5: Can I use this for self-employed income?
A: No, this calculator is designed for PAYE (Pay As You Earn) employees. Self-employed individuals have different tax and National Insurance calculations.