Pension calculator UK 2026/27
Enter your salary and pension contribution percentage to see the real cost of saving into your pension — how much goes in, how much tax you save, and what happens to your take-home pay.
Calculate your pension impact →How pension tax relief works
Pension contributions receive tax relief at your marginal rate. A basic-rate taxpayer's £100 contribution effectively costs £80; for a higher-rate taxpayer it can cost £60. Contributions made by salary sacrifice also avoid National Insurance, making them even more efficient.
Contributions between £100,000 and £125,140 of income are particularly powerful, because they can restore your tapered Personal Allowance — an effective relief rate of around 60%.
Frequently asked questions
How much does a pension contribution really cost me?
Less than the headline amount, because of tax relief at your marginal rate. £100 into your pension typically reduces take-home pay by about £80 for a basic-rate taxpayer and £60 for a higher-rate taxpayer — less still via salary sacrifice.
What is the minimum auto-enrolment contribution?
The auto-enrolment minimum is 8% of qualifying earnings, of which at least 3% must come from your employer, with the rest from you (including tax relief).
Can pension contributions reduce my tax band?
Yes. Contributions reduce your taxable income, which can bring you back under the higher-rate threshold, the £100,000 Personal Allowance taper, or the child benefit charge threshold.