Pay rise calculator
A pay rise is taxed at your top rate, so you keep less than the headline figure. See exactly how much more you will take home each month.
How much of a £1,000 rise you keep
| Current salary | Extra take-home a year | A month | Kept |
|---|---|---|---|
| £25,000 | £720 | £60.00 | 72.0% |
| £35,000 | £720 | £60.00 | 72.0% |
| £45,000 | £720 | £60.00 | 72.0% |
| £55,000 | £580 | £48.33 | 58.0% |
| £75,000 | £580 | £48.33 | 58.0% |
| £105,000 | £380 | £31.67 | 38.0% |
Basic-rate taxpayers keep 72% of a rise. Once you are a higher-rate taxpayer you keep 58%, and in the £100,000 to £125,140 band only 38%. A student loan takes another 9% if you are over the threshold.
Inflation and real pay
A rise only increases your spending power if it beats inflation. A 3% rise in a year when prices rise 3% leaves you where you were, and because tax thresholds are frozen, a slightly larger share of your pay goes in tax each year.
FAQ
Can a pay rise leave me worse off?
Not through income tax or National Insurance; you always keep part of each extra pound. It can reduce means-tested support such as Universal Credit, child benefit (through the high income charge) or funded childcare.
Why does my first payslip after a rise look different?
Back pay, a mid-month change or a tax code update can make the first payslip unusual. The calculator shows the steady position over a full year.