Annual Tax Saving
A$600.00
Income Tax Saved
A$1,900.00
Contributions Tax
A$1,500.00
Take-Home Reduction
A$7,900.00
Extra Super at Retirement
A$537,616.82
Rates & sources
Standard amortisation formulas used across UK lenders. Interest rates move daily — confirm with your lender or broker.
Source: Bank of England — Statistics — figures refreshed at the start of each tax year.
When to use this calculator
- Before comparing lenders, brokers, or repayment options.
- When you want to test how a different deposit, rate, or term changes affordability.
- When you need a quick estimate before using a formal quote or agreement in principle.
- When you are stress-testing your budget against a potential rate rise to see the impact on monthly payments.
- When you want to understand the full cost of borrowing — not just the monthly figure — before you commit.
A realistic Australia planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Annual Gross Salary (A$)
A$80,000
Annual Salary Sacrifice Amount (A$)
A$80,000
Marginal Tax Rate
19% ($18,201–$45,000)
Current Super Balance (A$)
A$1,400
After entering these figures, review annual tax saving, income tax saved and contributions tax together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.
How to read your results
Annual Tax Saving
Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.
Income Tax Saved
Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.
Contributions Tax
Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.
Take-Home Reduction
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Extra Super at Retirement
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Method & assumptionsAuthoritative sources
This calculator estimates the tax benefit of making pre-tax salary sacrifice contributions into superannuation under Australia’s 2024/25 rules. The core saving arises because concessional contributions are taxed at 15% inside your super fund rather than at your marginal income tax rate (plus the 2% Medicare levy), which can be as high as 47%. The calculator caps the effective sacrifice at the $30,000 concessional cap, then computes the contributions tax, the income tax and Medicare saving, and the net annual benefit. The projected extra super at retirement uses a future value of an annuity formula applied to the annual after-contributions-tax amount at your chosen growth rate.
All figures are indicative. The calculation assumes a flat marginal rate across the entire sacrificed amount, does not model carry-forward unused cap amounts, and does not account for Division 293 tax (an additional 15% on concessional contributions for those earning over $250,000). Individuals with income near a tax-bracket boundary should consider the effect of reducing their taxable income on their effective rate. Speak with a licensed financial adviser or registered tax agent before establishing or significantly changing a salary sacrifice arrangement.
Common mistakes
- !Mixing up loan amount and property value, which can distort affordability and LTV.
- !Using a headline rate but forgetting fees, insurance, taxes, or repayment type.
- !Testing only one term length instead of comparing the payment and total cost together.
- !Forgetting that a repayment mortgage and an interest-only mortgage produce very different monthly figures and total costs.
- !Not accounting for the impact of a rate revert after an introductory fixed period ends, which can sharply increase payments.
What to do next
- Run a second scenario with a higher rate or shorter term so you can see the downside clearly.
- Compare the result with an affordability or overpayment calculator before applying.
- Use the related guides below to understand trade-offs before you request live quotes.
- Note down the monthly payment and total interest for your two or three strongest scenarios so you have a clear comparison ready when you speak to a broker.
- Check whether making a modest overpayment each month would reduce total interest significantly — run the overpayment calculator next to find out.
Frequently asked
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End-of-article next steps
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