Salary comparison calculator
A £7,000 gap in gross salary between two offers becomes about £5,040 in take-home pay a year, because tax and National Insurance take more from earnings above £50,270, under gov.uk's Income Tax and National Insurance rates. This calculator estimates the real take-home gap between any two salaries entered.
How do the two salaries compare side by side?
| Salary A | Salary B | |
|---|---|---|
| Gross | £35,000 | £42,000 |
| Income tax | £4,486 | £5,886 |
| National Insurance | £1,794 | £2,354 |
| Take-home / month | £2,393 | £2,813 |
| Take-home / year | £28,720 | £33,760 |
Why is the take-home gap smaller than the salary gap?
The difference between two salaries is taxed at the marginal rate of the higher one. If the extra pay sits in the basic band, it loses 20% income tax and 8% National Insurance, under gov.uk's Income Tax and National Insurance rates. If it crosses £50,270, the slice above loses 40% income tax and 2% National Insurance instead. The gap in take-home pay is therefore always narrower than the gap stated in the two contracts.
What is the difference in this example?
Salary A of £35,000 and Salary B of £42,000 differ by £7,000 on paper. After income tax and National Insurance, the estimated take-home difference is about £5,040 a year, or £420 a month. The narrower take-home gap is a reminder that the real difference between two offers is often smaller than the headline salary suggests.
Common questions
How do I compare two job offers?
Compare the take-home, not the gross. A higher salary can be taxed more heavily on the extra, so the gap in take-home pay is smaller than the gap on paper. This tool shows both figures for each salary and the difference that reaches your account.
Is the difference in take-home smaller than the salary difference?
Usually yes. Here a £7,000 gap in gross salary becomes about £5,040 in take-home, because the higher salary pays more tax and National Insurance on the extra pay.
Does a higher salary ever leave me worse off?
On salary alone, no: you always keep something from a rise. The take-home simply grows more slowly once you cross £50,270 or the £100,000 allowance taper. Other factors such as childcare support or student loan repayments can change the wider picture, but they are outside this comparison.
What is not included?
Pension contributions, student loan repayments, benefits, bonuses and pension or private health cover. Two offers with the same salary can differ a lot once those are counted, so weigh the whole package alongside the take-home shown here.
How do the two salaries compare side by side?
The table sets Salary A against Salary B across five lines: gross pay, income tax, National Insurance, monthly take-home and yearly take-home. Reading down each column shows how much of the higher salary is absorbed by tax and National Insurance under gov.uk's Income Tax and National Insurance rates, rather than reaching the take-home figures at the bottom of the table.
Why is the take-home gap smaller than the salary gap?
The extra pay above the lower salary is taxed at the marginal rate of the higher one. Pay that falls in the basic band loses 20% income tax and 8% National Insurance, under gov.uk's Income Tax and National Insurance rates. Once earnings cross £50,270 the slice above is taxed at 40% and 2% instead, so the take-home gap is always narrower than the gap on the two contracts.
What is the difference in this example?
Salary A of £35,000 and Salary B of £42,000 differ by £7,000 before tax. After income tax and National Insurance, the estimated take-home difference is about £5,040 a year, or £420 a month. The gap narrows because part of the extra pay is taxed at a higher marginal rate than the rest of the salary.
Sources & Rate Verification
Rates verified against official statutory guidance on 6 September 2026.