Useful next calculations
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.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Your Annual Pension Contribution (£) | £5,000 |
| Your Income Tax Band | Basic rate (20%) |
| Employer Annual Contribution (£) | £0 |
For those figures the calculator returns:
- Basic rate relief added: £1,000.00
- Additional relief to claim: £0.00
- Total tax relief: £1,000.00
- Your net cost: £4,000.00
- Total into pot: £5,000.00
How to read your results
Total 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 models pension tax relief under the relief at source system, which is used by the majority of personal and SIPP pension providers in the UK. You enter the gross contribution amount — the total that lands in your pot including the basic rate top-up — and select your marginal income tax band for the 2026/27 tax year. The calculator splits the total relief into two components: the 20% basic rate relief added automatically by your provider, and any additional relief above 20% that higher, additional, or Scottish-rate taxpayers are entitled to claim back via Self Assessment. The effective cost to you is your gross contribution minus total relief, representing what the pension actually costs from your after-tax income.
The tool includes the Scottish intermediate rate (21%) and Scottish higher rate (42%) as these diverge from UK-wide rates and require Scottish taxpayers to claim the marginal difference separately. The annual allowance of £60,000 and the tapered allowance for high earners are not modelled here — if your total contributions exceed £60,000, an annual allowance charge may apply. Employer contributions are included in the total pot calculation only and do not affect the personal relief figures. Always verify your relief entitlement with HMRC or a regulated financial adviser, as individual circumstances may affect the amounts claimable.
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.