Useful next calculations
Rates and sources, 2026/27
Estimates basic/higher/additional-rate income-tax relief on employee pension contributions using 2026/27 bands.
Source: GOV.UK — Tax on your private pension. Source checked for 2026/27.
When to use this calculator
- Before choosing between saving, investing or changing a contribution.
- When you want to compare cautious, base and optimistic return assumptions.
- When you need a projection before making a longer-term decision.
- When you want to see whether starting earlier or contributing more changes the outcome more.
Worked example: £80,000 salary, 10% personal contribution
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
| Input | Value |
|---|---|
| Gross salary | £80,000 |
| Employee contribution (10%) | £8,000 |
| Income tax saved (40% on £8,000) | £3,200 |
| Net cost to employee | £4,800 |
| Employer matches (3%) | £2,400 |
| Total annual pension contribution | £10,400 |
Net cost £4,800 buys £10,400 of pension growth — a 117% match before any investment return. Salary sacrifice on the same contribution adds another £160 NI saving.
How to read your results
Tax Relief
Review this figure alongside your gross income so you can understand deductions before the tax year closes. It is a planning estimate, not a filed return.
Method & assumptions
This calculator estimates the effect of pension contributions on your gross pay, taxable income, and take-home pay. It models both standard relief-at-source contributions and salary sacrifice arrangements for the 2026/27 tax year, using Income Tax and Class 1 National Insurance thresholds as published by HMRC.
The tool assumes you are enrolled in a registered UK pension scheme and have not triggered the Money Purchase Annual Allowance or Tapered Annual Allowance. It does not model defined benefit (final salary) schemes, which have their own contribution and benefit structures. Scottish Income Tax rates are not included. Figures are illustrative only — your actual pension statements and payslip deductions may differ based on your specific scheme rules, employer matching policy, and tax code. Consult your pension provider or an independent financial adviser for personalised guidance.
Common mistakes
- Assuming a constant return without checking a more conservative growth rate.
- Forgetting ongoing contributions, fees or tax wrappers where relevant.
- Focusing only on the final balance instead of the path required to reach it.
- Ignoring the drag of charges over a long period.
What to do next
- Test a cautious, expected and optimistic growth rate.
- Compare this result with related savings or retirement tools before committing more money.
- Consider charges and any tax wrapper that applies.
- If the projected balance falls short, increase the contribution until the result meets your goal.
Guides that use this calculator
- Pay Rise Calculator Guide: What a Gross Raise Becomes After Tax, NI and PensionTurn a gross salary increase into a real take-home figure by checking tax, National Insurance, pension contributions and inflation together.
- UK Salary Sacrifice Guide: Pension, EV & Cycle-to-Work SavingsHow UK salary sacrifice works — NI and tax savings on pension contributions, EV lease schemes, cycle-to-work, and the pitfalls around mortgage applications and statutory pay.
- HICBC Explained: Child Benefit, the £60,000 Threshold and the Hidden Marginal RateHow the High Income Child Benefit Charge works — the £60k–£80k taper band, adjusted net income, why the effective marginal rate in that band can be about 49% to 58%, and planning tactics.