Inputs
Compare estimated take-home impact of pension contributions. Supports salary sacrifice and relief-at-source (basic-rate relief).
Last updated: 2025-04-06
Enter before-tax salary.
Salary is required.
Enter the percentage of salary you want to contribute.
Results
Enter salary and contribution to see an estimate.
How to use this calculator
Enter your gross income and select how much you wish to contribute to your pension. Choose between salary sacrifice and relief at source arrangements. The calculator compares take‑home pay and pension contributions under each method.
Salary sacrifice reduces your contractual pay before tax and National Insurance are calculated. Relief at source deducts your contribution from take‑home pay; your pension provider claims basic‑rate tax relief and you may claim additional relief if you’re a higher‑rate taxpayer.
How it’s calculated
For salary sacrifice we reduce gross pay by the chosen contribution and recompute Income Tax and employee National Insurance. For relief at source we assume contributions are made after tax; basic‑rate relief is added to your pension by the provider. We then calculate how much additional tax relief you could reclaim via Self Assessment if you pay higher or additional rate tax.
Pension tax rules are complex. This calculator provides a simplified comparison and does not account for annual allowance charges, tapered allowances or Lifetime Allowance. Always verify large contributions with a professional adviser.
Frequently asked questions
- Which method is better?
- Salary sacrifice usually yields higher take‑home pay because it reduces both Income Tax and National Insurance. However, not all employers offer it and it may affect your entitlement to certain benefits. Compare both methods for your situation.
- Do I need to fill in a Self Assessment?
- If you use relief at source and pay higher‑rate tax you may need to claim extra tax relief via Self Assessment.
- Are there limits to how much I can contribute?
- Yes. The annual allowance and, for higher earners, the tapered annual allowance limit how much you can contribute and receive tax relief. This calculator does not check these limits.
Sources & updates
Based on HMRC guidance for 2025/26. Last updated April 2025. See ourMethodology for more detail.
Estimates only – not financial advice.