Salary Comparison Calculator

Updated for tax year 2026/27 Last reviewed 10 August 2026 Salary & Tax

Choosing between two jobs? Enter both salaries with their pension and student loan details to see a true like-for-like comparison of take-home pay.

The calculator shows each salary as a full breakdown so you can see what each offer is really worth.

Your details

Employee contribution as a % of gross salary
Employee contribution as a % of gross salary

Results

Better take-home offer
Salary B
By £1,044.65 a year
Salary A take-home
£30,319.60
Salary B take-home
£31,364.25
Salary A monthly take-home
£2,526.63
Salary B monthly take-home
£2,613.69
Salary A effective tax rate
19.2%
Salary B effective tax rate
19.62%

Salary A

Gross salary£40,000.00
Income Tax£5,486.00
National Insurance£2,194.40
Pension contribution£2,000.00
Student loan£0.00
Take-home pay£30,319.60

Salary B

Gross salary£42,000.00
Income Tax£5,886.00
National Insurance£2,354.40
Pension contribution£1,260.00
Student loan£1,135.35
Take-home pay£31,364.25

How the calculation works

We believe numbers should be transparent. Here is the formula behind this calculator.

Take-home = salary + other income − Income Tax − NI − pension − student loan

Worked example

Worked example: two job offers compared

Salary A: £40,000 with a 5% pension, no student loan.
Salary B: £42,000 with a 3% pension and a Plan 2 student loan.
Salary A take-home ≈ £2,447 a month. Salary B ≈ £2,535 a month.
Salary B wins on take-home despite the student loan — about £88 a month more.

Important assumptions

  • Assumes the same tax year for both salaries.
  • Pension uses relief at source in both cases.
  • Does not include benefits in kind, bonuses or Scottish rates.

Frequently asked questions

How do I compare two job offers fairly?

Compare take-home pay, not gross. Include pension, student loan and any benefits in kind. A lower gross salary with a bigger pension or fewer deductions can pay more in the bank.

Does a higher salary always mean more take-home?

Usually, but not always — a higher student loan repayment, pension or a benefits in kind can offset the difference. This calculator shows both side by side.

Why does my effective tax rate differ between jobs?

Pension and student loan deductions change your taxable income, which changes the effective rate. Higher pension contributions typically lower your effective tax rate.

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Related guides

New to the topic? Read a plain-English guide on salary & tax, with worked examples and tips.

These calculations are estimates for guidance only and are not professional financial, tax or legal advice. UK rates and rules change, so always verify important figures with official GOV.UK / HMRC information or speak to a qualified professional. See our full disclaimer.