Salary Sacrifice Calculator
Salary sacrifice
Sacrificing salary into a pension cuts your Income Tax and National Insurance, so the real cost to you is less than the amount that lands in your pot.
Lands in your pension
for a real cost of just
- You sacrifice
- Take-home before
- Take-home after
- Income Tax saved
- National Insurance saved
- Employer NI added to pot
- Real cost to you
Every £1 in your pot costs you
cost per £1 in pension
effective relief
Estimate for the tax year. Assumes a workplace pension under a salary sacrifice arrangement.
Part of your salary sits in the £100,000–£125,140 band where the Personal Allowance is withdrawn, creating an effective 60% tax rate. Sacrificing into a pension is an especially efficient way to claw that allowance back.
Sacrificing this much takes part of your pay below the National Insurance / Income Tax thresholds, so the tax-and-NI saving on the last slice is smaller.
Pension pot vs real cost
As you sacrifice more of your salary, the gap between what lands in your pot and what it actually costs you widens.
Compare saved scenarios
| Scenario | In pension | Real cost | Saved | |
|---|---|---|---|---|