Compare Two Salaries

Compare two salary offers to see which gives you more take-home pay after tax, National Insurance, and student loan deductions

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Select your student loan plan (applies to both salaries)

Enter Both Salaries

See which one gives you more take-home pay

How This Salary Comparison Works

This calculator helps you compare two salary offers by calculating the actual take-home pay for each, accounting for all deductions:

  1. Applies UK Income Tax based on current tax bands (20%, 40%, 45%)
  2. Deducts National Insurance contributions (8% basic rate, 2% above £50,270)
  3. Calculates student loan repayments if applicable (9% above threshold for most plans)
  4. Shows side-by-side comparison of net take-home pay
  5. Displays the exact difference in pounds and percentage

The comparison uses the same student loan plan for both salaries to give you an accurate like-for-like comparison.

Why Comparing Salaries Matters

Making Better Decisions

  • A higher gross salary doesn't always mean more take-home pay
  • Tax bands and student loans can significantly affect the difference
  • Small salary increases may push you into higher tax brackets

Real-World Impact

  • Understand the true value of job offers and pay rises
  • Make informed career decisions based on actual earnings
  • Budget accurately based on your real take-home pay

Salary Comparison FAQs

Why might a higher salary result in less take-home pay?

If a salary increase pushes you into a higher tax bracket, you'll pay more tax and National Insurance on the additional income. Combined with student loan repayments, the net increase may be smaller than expected.

Should I always choose the higher gross salary?

Not necessarily. Consider other factors like pension contributions, benefits, commute costs, work-life balance, and career progression opportunities. A slightly lower salary with better benefits might be worth more overall.

Does this include pension contributions?

No, this comparison focuses on tax, National Insurance, and student loan deductions. Pension contributions vary by employer and employee choices, so it's best to compare those separately.

How accurate is this comparison?

This calculator uses standard 2025/26 UK tax rates and provides accurate estimates for most employees. Actual deductions may vary based on your specific tax code, pension scheme, and other personal circumstances.

What if I have different student loan plans for each salary?

This calculator uses one student loan plan for both salaries to provide a fair comparison. Your student loan plan follows you between jobs, so this gives an accurate like-for-like comparison.

Disclaimer

This salary comparison tool provides estimates for informational purposes only. Calculations are based on standard UK tax rates and assumptions for the 2025/26 tax year. Actual take-home pay may vary depending on your specific tax code, pension contributions, benefits-in-kind, and other personal circumstances. This tool should not be used as a substitute for professional financial advice. Always verify salary details with your employer and consult HMRC or a qualified tax advisor for personalized guidance.