Calculate how much you save through salary sacrifice pension contributions - one of the most tax-efficient ways to save for retirement

Salary Sacrifice: This calculator assumes you're using salary sacrifice, where pension contributions are taken before tax and National Insurance, maximizing tax efficiency.

Location: This calculator uses tax rates for England and Wales - Scottish tax rates are different.

Salary & Contribution
Enter your gross salary and how much you want to contribute via salary sacrifice
£

This is your gross total salary including bonuses, overtime, etc.

%

or

£

Notes:

  • Enter only your personal contributions, not your employer's
  • Your employer's contribtuions don't affect how much tax you save.
  • The £60,000 annual allowance limit applies to combined personal and employer contributions
  • You cannot contribute more than your gross salary

Pension Withdrawal
Enter your pension pot value and desired annual withdrawal
£

Tax-free portion is 25% up to £1,073,100 pot value

£
Salary Tax Breakdown
Breakdown of your finances

Current Salary Breakdown

Your salary is first reduced by pension contributions, then taxed
Gross Salary£50,000
Pension Contribution-£5,000
Taxable Income£45,000

Current Tax Breakdown

Income Tax and National Insurance are calculated on your salary after pension deductions

Total Tax-£9,080
Total Tax % (of gross salary)18.2%

Take-Home Pay

Your final take-home pay after all deductions, and total compensation including pension
Net Take Home£35,920
Net Take Home + Pension£40,920
Withdrawal Tax Breakdown
Analysis of taxes on pension withdrawals

Withdrawal Calculation

25% tax-free allowance (capped at £1,073,100 pot) is spread across all withdrawals
Annual Withdrawal£25,000
Tax-Free Amount (25.0%)£6,250
Taxable Amount£18,750

Tax on Withdrawals

The taxable portion is treated as income and taxed at your marginal rate

Total Tax % (of withdrawal)4.9%

Net Withdrawal

The amount you'll receive after tax is deducted from your withdrawal
Net Withdrawal£23,764
Based on a pot value of £500,000
Salary & Pension Allocation by Pension Contributions
Shows how your total compensation (salary + pension) is split between take-home pay, pension savings, and taxes. The black line shows your total money after all taxes (including future pension withdrawal tax).
Marginal Return on Investment by Pension Contributions
For every £1 you put in your pension vs. taking it as salary. The purple line shows how much more money you get by using your pension vs. taking it as salary (due to tax savings).
Tax Rates & Savings by Pension Contributions
Shows your current tax rates and potential savings. The black line shows your total tax rate (salary + future pension). The blue line shows your net tax savings after considering both current and future taxes.
Pension Withdrawal Breakdown
Shows how much you'll get to keep from your pension withdrawals. Part of it is tax-free due to LSA, and the rest is taxed as income.