1. What is Take Home Pay?

Take home pay (net salary) is the amount you receive after all deductions from your gross salary. In the UK, these typically include Income Tax, National Insurance contributions, student loan repayments, and pension contributions.

2. How the Calculator Works

The calculator uses the following formula:

Where:

• Gross Pay — Your total salary before any deductions
• Income Tax — Deducted based on your tax code and income level
• National Insurance — Contributions to state benefits
• Student Loan — Repayments if you have an outstanding student loan
• Pension Contributions — Workplace or personal pension contributions

3. Understanding UK Deductions

Income Tax: In the UK, income tax is progressive with different rates for basic, higher, and additional rate taxpayers. The personal allowance (tax-free amount) is £12,570 for 2023/24.

National Insurance: Contributions depend on your employment status and earnings. Employees pay Class 1 contributions above £242/week (2023/24).

4. Using the Calculator

Tips: Enter your annual gross salary and estimated deductions. For student loans and pensions, enter 0 if not applicable. The calculator will show your estimated annual net salary.

5. Frequently Asked Questions (FAQ)

Q1: How accurate is this calculator?
A: This provides a basic estimate. Actual take-home pay may vary based on specific tax codes, benefits, or other deductions.

Q2: Are bonuses included in gross pay?
A: Yes, include all taxable income in your gross pay figure.

Q3: How do I know my exact tax code?
A: Your tax code appears on your payslip or P45. Common codes are 1257L (standard) or BR (basic rate).

Q4: What if I'm self-employed?
A: This calculator is for employed individuals. Self-employed have different NI classes and tax calculations.

Q5: When do student loan repayments start?
A: Repayments begin the April after graduation when earning over £27,295/year (Plan 2) or £22,015/year (Plan 5).