💼 Gross to Net Salary Calculator
Your gross salary is what your employment contract states; your net salary is what you actually receive in your account after tax and pension. This calculator converts gross to net using your average tax rate (from your payslip) and includes holiday allowance.
Net per month
£2,394.00
Net per year (incl. holiday)
£28,929.60
Tax withheld per month
£1,406.00
Pension per month
£200.00
Subtract the pension contribution: £4,000.00 − £200.00 = £3,800.00
Calculate income tax: £3,800.00 × 37% = £1,406.00
Net = taxable amount minus tax: = £2,394.00
Formula
Net monthly = (Gross − Pension) × (1 − Tax rate %)
Your gross salary is first reduced by the pension contribution (tax-deductible), then your average tax rate is applied. Holiday allowance (usually 8% paid separately in May/June) is taxed like regular salary, so you receive it net.
Steps
- 1Enter your monthly gross salary (the amount on your employment contract).
- 2Enter your average tax rate (found on your payslip: withheld tax ÷ gross).
- 3Enter your pension contribution as a percentage of gross (usually 3–12%).
- 4Choose whether you receive holiday allowance separately or it's already in the gross amount.
Net monthly salary at different tax rates
| Gross salary | At 30% tax | At 40% tax |
|---|---|---|
| € 3,000 | € 1,890 | € 1,620 |
| € 4,000 | € 2,520 | € 2,160 |
| € 5,000 | € 3,150 | € 2,700 |
Note: this table assumes 5% pension and 8% holiday pay separate. Your actual net depends on your specific situation and local tax rules.
commonMistakes
- Counting holiday allowance twice: both in the monthly amount and again separately in May/June — it's only paid once.
- Confusing the marginal tax rate with your average rate — find your average by dividing withheld tax by gross.
- Not accounting for tax credits or work allowances — these can raise your net pay and are implicitly in your average rate.
useCases
- Translating a new job offer salary into what you actually keep each month.
- Calculating the impact of a higher pension contribution on your net pay.
- Budgeting based on net income (not gross) for household planning.