Salary Comparison Calculator
Compare job offers on take-home and pensionRuns in your browser
| Per year unless stated | Current job | New offer |
|---|---|---|
| Gross salary | £40,000 | £42,000 |
| Income tax | £5,486.00 | £5,886.00 |
| National Insurance | £2,194.40 | £2,354.40 |
| Student loans | £0.00 | £0.00 |
| Your pension (from pay) | £1,600.00 | £1,680.00 |
| Take-home per year | £30,719.60 | £32,079.60 |
| Take-home per month | £2,559.97 | £2,673.30 |
| Take-home per hour worked | £15.75 | £15.42 |
| Employer pension | £1,200.00 | £3,360.00 |
| Total into your pension | £3,200.00 | £5,460.00 |
| Take-home + pension | £33,919.60 | £37,539.60 |
New offer pays £113.33 a month more in take-home pay than Current job; counting pensions the difference is £3,620.00 a year in its favour.
Your and your employer's pension percentages use the same basis (whole salary or qualifying earnings). Bonuses, benefits in kind, commuting costs and holiday are not included.
These are estimates based on 2026/27 rates and the inputs you give. Your actual position can differ (other income, benefits in kind, tax code changes, scheme rules). This is not financial or tax advice.
How it works
Worked example
Input: Current job £40,000 (5% you, 3% employer, 37.5 h) vs new offer £42,000 (5% you, 8% employer, 40 h), relief at source, England.
- Take-home: £30,719.60 vs £32,079.60 (£113.33 a month more).
- Employer pension: £1,200 vs £3,360. Total into pension: £3,200 vs £5,460.
- Take-home per hour worked: £15.75 vs £15.42.
Result: The offer pays £1,360 more take-home and £3,620 more counting pensions, but slightly less per hour worked.
Reading the result
- Take-home plus pension counts your contribution, the 20% basic-rate relief and the employer's contribution, which is the fairest single number for comparing packages.
Limits
- Assumes one PAYE job for the whole 2026/27 tax year. Pay-period rounding on real payslips can change monthly figures by a few pence.
- Does not include benefits in kind, the High Income Child Benefit Charge, Marriage Allowance or Blind Person's Allowance unless they are reflected in the tax code you enter.
- Employer pension contributions and employer National Insurance are not part of take-home pay and are not shown.
Sources
- HMRC – Rates and thresholds for employers 2026 to 2027
- GOV.UK – Income Tax rates and Personal Allowances
- GOV.UK – Scottish Income Tax
- GOV.UK – National Insurance rates and categories
- GOV.UK – Repaying your student loan: what you pay
- GOV.UK – Tax on your private pension contributions (tax relief)
- GOV.UK – Workplace pensions: what you, your employer and the government pay
- GOV.UK – Tax codes
How to use
- 1Enter each job's salary, your pension %, the employer's pension % and the contracted hours per week.
- 2Set the pension type and your region, tax code and student loan once: they apply to every job.
- 3Compare take-home per month, take-home per hour worked and take-home plus pension. The best figure in each row is highlighted.
FAQ
Is a higher salary always the better offer?
Not necessarily. A bigger employer pension contribution, shorter hours or salary sacrifice can make a lower salary worth more. Compare take-home per hour worked and take-home plus pension, not just gross pay.
How much is an employer pension contribution worth?
Every pound the employer pays goes straight into your pension with no tax or NI taken off now. Moving from a 3% to an 8% employer contribution on £42,000 adds £2,100 a year to your pension.
What does take-home per hour worked show?
Take-home pay divided by contracted hours over 52 weeks. It shows whether a higher salary is just paying for longer hours.