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Pension contribution calculator
What paying into your pension really costs after tax relief, what your employer adds on top, and how much actually lands in your pot.
Tax year 2026/27. Modelled as a net-pay contribution (income tax relief, not NI). Salary sacrifice also saves NI, so it costs you a little less than shown.
Into your pension each year
£3,200
for £1,600 off your take-home
Every £1 you give up in take-home puts £2.00 into your pension.
- Your contribution£2,000
- Tax relief added+£400
- Employer puts in+£1,200
- Total into your pot£3,200
If your employer matches more than you currently put in, raising your contribution to claim it is usually the best-value move you can make. See what it grows into.
Common questions
- How much does a pension contribution really cost me?
- Less than the headline amount, because of tax relief. A basic-rate taxpayer paying £100 into a pension only sees take-home drop by £80; the other £20 is tax relief. A higher-rate taxpayer's £100 costs about £60. The calculator shows your exact figures.
- What is an employer match and why does it matter so much?
- Many employers will increase their own contribution if you increase yours, up to a limit. That extra is free money on top of tax relief. If you are not contributing enough to claim your full match, raising your contribution to reach it is usually the highest-return move available to you.
- How does pension tax relief work?
- Contributions come out of pay before income tax, so you are not taxed on the money you put in. Under a net-pay or salary-sacrifice scheme this happens automatically through payroll; under relief-at-source, the provider adds 20% and higher-rate taxpayers claim the rest through self assessment.
- Is there a limit on contributions?
- Most people can get tax relief on contributions up to 100% of their salary or £60,000 a year, whichever is lower (the annual allowance). Very high earners and those who have already drawn a pension may have a lower limit.
- Should I pay into a pension or pay off my mortgage?
- Pension contributions get tax relief and often an employer match, which usually beats the interest saved by overpaying a mortgage. The common order is: claim the full employer match, clear expensive debt, build an emergency fund, then weigh extra pension against mortgage overpayment.
Wondering if your pension is the right priority right now? The Money Health Check ranks it against the rest.