Reviewed by Mustafa Bilgic
Founder, WebCalculator
Pension relief and tax rates follow HMRC for 2026/27. The exact net cost depends on your scheme type and tax position. Estimates only, not financial advice.
See what a pension contribution really costs you. Enter your salary and contribution, and we'll show your new take-home, how much it actually reduced your pay, and the relief that softens the blow.
Real cost after relief
Pension contributions are paid from pre-tax income, so the government effectively tops up what you put in. For a basic-rate taxpayer, every £100 that lands in your pension costs only about £80 of take-home. For a higher-rate taxpayer it's around £60. Under salary sacrifice you also save National Insurance, making the real cost lower still.
| Your tax rate | £100 in pension costs you |
|---|---|
| Basic rate (20%) | ~£80 |
| Basic + salary sacrifice | ~£72 |
| Higher rate (40%) | ~£60 |
| Higher + salary sacrifice | ~£58 |
To see the full pay breakdown including National Insurance and student loan, use the salary calculator or the take-home pay calculator. To weigh salary sacrifice specifically, try the salary sacrifice calculator and the pension contribution calculator.
It reduces take-home by less than you pay in. For a basic-rate taxpayer, £100 into a pension costs about £80 of take-home; higher-rate, about £60.
The amount paid minus the tax (and NI) relief. This calculator shows both the gross contribution and the actual hit to your pay.
Often yes — it also saves National Insurance. The trade-off is a lower gross salary, which can affect mortgage borrowing.
Yes — the annual allowance (typically £60,000) caps tax-relieved contributions, and it tapers for very high earners.