Where Does Your Salary Actually Go?
Most people glance at their payslip, note the net figure, and move on. But between your gross salary and the money hitting your bank account, several deductions are silently carved out — and understanding each one is the first step to keeping more of what you earn.
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Income Tax, National Insurance, pension contributions, and student loan repayments each follow their own thresholds and rates. A salary of £50,000 doesn't mean you pay 40% tax on all of it — only the portion above £50,270 enters the Higher Rate band. Meanwhile, NI drops from 8% to 2% at the same threshold, which confuses many people into thinking they're being overtaxed.
This calculator pulls together every deduction in one place, shows you exactly what your employer pays on top, and highlights opportunities to reduce your tax bill through pension contributions, salary sacrifice, and other reliefs. If you're considering a pay rise, it also shows how much of the increase you'll actually keep.
Your Salary Details
Enter your details to see the full picture
Optional PAYE code. Leave blank for standard annual tax with allowance taper. Issued codes use their allowance without a second taper; S/C prefixes determine Scottish/Welsh rates.
Annual estimate for one job, regular pay and NI category A. Pension percentages apply to full salary; RAS means net cash paid. Additional RAS relief must be claimed separately and is excluded from take-home pay. Select one undergraduate plan plus an optional postgraduate loan.
From your £45,000 salary, you take home
£2,806/month
That's £92.25 per day, or 74.8% of your gross pay
Where Your Salary Goes
Income Tax — £6,486/year
Marginal rate: 20%
| Band | Rate | Taxable | Tax |
|---|---|---|---|
| Personal Allowance | 0% | £12,570 | £0.00 |
| Basic Rate (20%) | 20% | £32,430 | £6,486.00 |
National Insurance — £2,594/year
Employee NI (you pay)
£2,594
Effective rate of cash pay: 5.8%
Employer NI (they pay)
£6,000
Salary, sacrificed pension and employer NI: £51,000. Other employer costs excluded.
| Band | Rate | Earnings | NI |
|---|---|---|---|
| Up to £12,570 (0%) | 0% | £12,570 | £0.00 |
| £12,570 – £50,270 (8%) | 8% | £32,430 | £2,594.40 |
Pension — £2,813/year into your pot
Goes into your pension
£2,813
Cost after relief and employee NI savings
£2,250
Tax relief: £563
Your £2,250 pension contribution only costs you £2,250 after tax relief.
Provider relief goes into your pension. Additional annual relief of £0 must be claimed from HMRC and is excluded from take-home pay. This separate relief estimate assumes standard allowances, not your issued PAYE code.
What Your Salary Gets You
On this salary you could borrow approximately
£202,500
and buy a property worth up to £202,500 (with deposit)
Illustrative borrowing of 4.5× income. Actual offers depend on your deposit, outgoings, and credit history.
Frequently Asked Questions
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