Pay Rise Calculator
See what your raise is really worth. The calculator applies 2026/27 UK income tax bands, National Insurance and the Plan 2 student loan to show the exact monthly gain from any pay rise.
Why your raise is smaller than it looks
A pay rise is taxed at your marginal rate — the rate on the extra pounds, not your average. Income tax, National Insurance and student loans all take their slice at the same time:
| Rise | Extra tax | Extra NI | Extra Plan 2 | You keep | Marginal rate |
|---|---|---|---|---|---|
| £40k → £45k | £1,000 | £400 | £450 | £3,150 | 37% |
| £50k → £60k | £3,946 | £216 | £900 | £4,938 | 51% |
| £60k → £70k | £4,000 | £200 | £900 | £4,900 | 51% |
The examples include the Plan 2 student loan, which quietly adds 9p to every marginal pound above £29,385. Without it, a £40k to £45k rise is worth 72p in the pound.
When the 40% band bites
Income above £50,270 gross is taxed at 40% (the 37,700 basic-rate band plus the £12,570 personal allowance). Cross it and each extra pound also carries the 2% NI rate — which is why a £50k → £60k jump nets barely half the headline figure. Above £100,000 the personal allowance tapers away at £1 for every £2, creating an effective 60% band before the 45% rate even starts.
Frequently asked questions
A £5,000 pay rise is how much per month?
At £40,000 rising to £45,000 you keep £3,150 of it after tax, National Insurance and a Plan 2 student loan — £262 a month. Without the student loan it is £412 a month.
Why is my marginal rate higher than my tax band?
Income tax is only part of it. National Insurance adds 8% (or 2% above £50,270) and Plan 2 student loans add 9% above the £29,385 threshold — stacking to a 51% marginal rate for many higher earners.
Does a pay rise push me into a higher tax band?
Only the income above the threshold is taxed higher. In 2026/27 the 40% rate starts on income above £50,270 gross, so a rise from £45,000 to £52,000 taxes just £1,730 at 40%.
How much of a £10,000 rise do I keep at £60,000?
About £4,900 a year, or £408 a month, including income tax, National Insurance and a Plan 2 student loan — a 51% marginal rate.