1. What is Monthly Net Pay?

Monthly net pay is the amount of money you take home each month after all deductions (taxes, national insurance, student loans, and pension contributions) have been subtracted from your gross annual salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay — Your total annual salary before deductions
• Income Tax — Total annual income tax based on 2025-26 UK tax brackets
• National Insurance — Annual National Insurance contributions
• Student Loan — Annual student loan repayments (if applicable)
• Pension Contributions — Annual pension contributions (if applicable)

3. Importance of Net Pay Calculation

Details: Understanding your net pay helps with budgeting, financial planning, and comparing job offers. It shows your actual take-home pay rather than just the gross salary figure.

4. Using the Calculator

Tips: Enter your gross annual salary and all applicable deductions. The calculator will divide the remaining amount by 12 to give your estimated monthly take-home pay.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net pay?
A: Gross pay is your total salary before deductions, while net pay is what you actually receive after all deductions.

Q2: Are pension contributions tax-deductible?
A: Yes, pension contributions are typically made before tax is calculated, reducing your taxable income.

Q3: How is student loan repayment calculated?
A: In the UK, student loan repayments are typically 9% of income above a certain threshold.

Q4: What National Insurance category should I use?
A: Most employees are in Category A. Check your payslip or with HR if unsure.

Q5: Does this include bonuses or overtime?
A: This calculator assumes a fixed annual salary. For variable income, you may need to calculate separately.