Check whether a pay rise still leaves you better off once childcare, rent increases or lost benefits are counted, and how big a rise you would need.
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With country United Kingdom, current gross annual pay 40,000, pay rise before tax (per year) 5,000, extra monthly costs (childcare, rent, bills) 400, benefits or subsidies lost per month 0, us state income tax estimate (%, us only) 4, the you would be worse off by is £1,200.00.
| Country | United Kingdom |
|---|---|
| Current gross annual pay | 40,000 |
| Pay rise before tax (per year) | 5,000 |
| Extra monthly costs (childcare, rent, bills) | 400 |
| Benefits or subsidies lost per month | 0 |
| US state income tax estimate (%, US only) | 4 |
| You would be worse off by | £1,200.00 |
|---|---|
| Pay rise before tax | £5,000.00 |
| Kept after tax and contributions | £3,600.00 |
| Extra costs and lost benefits per year | £4,800.00 |
| Share of the pay rise you keep after costs | -24% |
| Pay rise needed to cover the extra costs | £6,666.67 |
Amounts are shown in GBP for illustration. Choose your own currency in the calculator above; it labels amounts and does not convert them.
Enter the gross pay rise and the monthly costs that go up because you earn more. The calculator also solves for the gross pay rise you would need just to cover them, which shows how steep the effective tax on extra pay can be.
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Net gain = take-home from the rise − 12 × (extra monthly costs + lost benefits). Enter the gross pay rise and the monthly costs that go up because you earn more. The calculator also solves for the gross pay rise you would need just to cover them, which shows how steep the effective tax on extra pay can be.
With country United Kingdom, current gross annual pay 40,000, pay rise before tax (per year) 5,000, extra monthly costs (childcare, rent, bills) 400, benefits or subsidies lost per month 0, us state income tax estimate (%, us only) 4, the you would be worse off by is £1,200.00. Pay rise before tax: £5,000.00; Kept after tax and contributions: £3,600.00; Extra costs and lost benefits per year: £4,800.00; Share of the pay rise you keep after costs: -24%; Pay rise needed to cover the extra costs: £6,666.67.
This is an estimate based on the inputs and assumptions shown on this page, not professional advice. Check anything with financial, health or safety consequences independently.
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