Two Salaries Comparison
Comparing two salaries by their gross figures alone genuinely misleads, since an identical gross gap between two numbers does not always translate into the same net gap once tax and National Insurance are properly applied. This calculator compares two independent salaries side by side, showing both the effective tax rate and the genuine net difference — useful for weighing up a job offer, negotiating a pay rise, or simply understanding what a specific salary difference is genuinely worth after deductions.
Two Salaries Comparison
Compare two salary offers side by side — see which pays more take-home, and by how much.
Why the Same Gross Gap Can Mean a Different Net Gap
A £10,000 gross difference between two salaries does not automatically mean a £10,000 difference in take-home pay — how much of that gap survives tax and National Insurance depends heavily on whether it crosses a tax band threshold along the way. This is precisely why this calculator compares the two salaries independently and in full, rather than assuming the gap alone tells the whole story — the genuine net difference is what actually matters for a real financial comparison.
This is worth genuinely checking rather than assuming, since the effect is not always intuitive — a gap that sits entirely below the higher-rate threshold survives considerably more intact than an identical gap that straddles it, even though the two gross numbers look exactly the same at first glance.
Seeing the Same £10,000 Gap Behave Differently
£48,000 compared with £58,000 — a £10,000 gross gap that crosses the higher-rate threshold — produces a net difference of roughly £6,118 a year; only around 61% of the gross gap survives as extra take-home pay. The identical £10,000 gap between £25,000 and £35,000, staying entirely within the basic rate band, produces a net difference of roughly £7,200 instead — around 72% surviving. The same headline gross gap, but a genuinely different real-world outcome purely from where the two salaries happen to sit relative to the higher-rate threshold.
This is worth running through with your own two specific figures rather than assuming a general rule of thumb applies — exactly how much of any given gross gap survives depends on the precise salaries involved, not just the size of the gap itself.
Using This for a Genuine Negotiation
When comparing a current salary against a job offer, or negotiating a specific pay rise figure, the net difference this calculator shows is a considerably more honest number to work from than the gross figures alone — a seemingly generous gross increase can turn out to be a more modest genuine improvement in take-home pay once it is properly checked against where it falls relative to your current tax band. This is worth checking directly with your own real numbers before treating a gross salary difference as the genuine measure of how much better, or worse, an offer or a rise actually is.
This is particularly worth doing before a negotiation conversation rather than during one — knowing your genuine net position in advance, rather than reacting to a gross figure in the moment, puts you in a considerably stronger position to judge whether a specific offer or counter-offer actually meets your real financial goal.
What This Calculator Does Not Capture
This comparison treats each salary as a fully independent scenario, each receiving its own full Personal Allowance — appropriate for comparing two separate, alternative situations such as two job offers, but not the right tool if you are comparing your current single salary against having two simultaneous jobs, where only one job typically receives the Personal Allowance. Using this calculator for a genuine two-simultaneous-jobs situation would overstate the second scenario’s take-home, since it would incorrectly apply a full second Personal Allowance that would not genuinely be available in that specific circumstance. Our Required Salary Calculator is useful for working backward from a specific net difference you want to achieve, to the gross salary that would actually deliver it, and our Income Tax Calculator is worth checking for a full, detailed breakdown of either individual salary figure on its own.
Frequently Asked Questions
Does this calculator account for pension contributions on either salary?
No — it compares gross salary to take-home pay through standard Income Tax and National Insurance only, so if pension contributions differ between the two scenarios you are comparing, it is worth factoring that separately into your own comparison.
Should I compare salaries at different companies using gross or net figures?
Net figures give a genuinely more accurate sense of the real financial difference, since gross figures alone do not reflect how much of an increase actually survives tax, particularly if the higher offer crosses into a different tax band than your current salary.
Is a bigger percentage pay rise always genuinely worth more in take-home terms?
Not necessarily — the genuine value depends on where your salary sits relative to tax band thresholds, so it is worth checking the actual net figures for your specific starting salary and proposed new salary rather than relying on the percentage increase alone.
Does this work for comparing salaries in different tax years?
This calculator applies current 2026/27 rates to both salaries entered, so for a genuine historical comparison across different tax years, a dedicated year-on-year comparison tool accounting for each year’s specific rates would be more appropriate.
Can I use this to compare a salary against self-employed income?
Not directly — this calculator applies standard employed Income Tax and National Insurance rules to both figures, while self-employed income is taxed somewhat differently through Self Assessment, so a direct comparison using this tool would not be fully accurate for that specific situation.
Important Information
This calculator provides an estimate based on standard 2026/27 tax and NI rates for general information purposes only and does not constitute tax or financial advice. See our Disclaimer for further information.