Pay Rise Calculator UK
Work out the real value of a pay rise for 2026/27. Enter your current and new salary to see the gross increase, how much extra take-home pay you keep after income tax and National Insurance, and whether the rise beats inflation in real terms.
Calculator
What this means
A pay rise looks bigger before tax than after. Because the extra pay is taxed at your marginal rate plus National Insurance, you keep only part of the headline figure. Inflation matters too — if prices rise faster than your salary, your spending power can still fall even after a rise.
How to use this calculator
- Enter your current salary and the new salary or percentage rise.
- See the change in gross and take-home pay.
- Check the real-terms value against inflation.
Worked example
A 4% rise on a £30,000 salary.
- £30,000 × 4% = £1,200 more gross a year.
- Take-home rises by less after tax and NI.
Gross pay rises by £1,200, with a smaller increase in take-home.
Who this is for
- Anyone offered or negotiating a pay rise.
- People checking a rise keeps pace with inflation.
- Anyone comparing their increase to the cost of living.
Gross rise vs real take-home
A pay rise increases your gross salary, but tax and National Insurance mean your take-home goes up by less. If the rise pushes you into a higher band, the extra is taxed more heavily.
To judge a rise in real terms, compare it with inflation. A 3% rise when prices rise 4% is effectively a small pay cut in spending power.
Frequently asked questions
A basic-rate taxpayer typically keeps about 72% of a rise (after 20% income tax and 8% National Insurance), while a higher-rate taxpayer keeps around 58% (40% tax + 2% NI). This calculator works out your exact take-home increase.
A real-terms rise is your pay increase after accounting for inflation. If your salary rises 3% but prices rise 4%, you've had a real-terms pay cut because your money buys less than before.
Income tax and National Insurance are deducted from the extra pay, and a rise can push part of your income into a higher tax band. Pension contributions and student loan repayments can reduce the increase further.
Because income tax and National Insurance apply to the extra pay. Near a tax threshold, more of the rise is taxed, so take-home increases by less than the gross figure.
Compare the percentage rise with the inflation rate. If your rise is lower than inflation, your real spending power has fallen even though the headline figure went up.
Disclaimer
This calculator provides estimates for guidance only. It is not financial, legal or tax advice. Always check official sources or speak to a qualified professional before making decisions.
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