Last reviewed: February 2026 by Mustafa Bilgic, UK Tax Specialist
Net to Gross Calculator 2025/26
Why You Need a Net to Gross Calculator
Most salary conversations in the UK use gross figures — but your real financial position depends on what actually lands in your bank account. There are several situations where converting from net to gross is essential.
Salary Negotiations
When negotiating a pay rise, it helps to know what gross salary you need to hit a specific monthly income target. If you currently take home £2,200/month and want to reach £2,700/month, you cannot simply ask for £6,000 more gross — the actual gross uplift needed depends on your current and target tax bands.
Comparing Job Offers
Occasionally, particularly in roles where salary is agreed informally or when moving from a country that quotes salaries net, you may need to compare a net offer against UK gross-quoted roles. This calculator converts either direction.
Freelance and Contract Rates
Self-employed workers and contractors often think in terms of desired monthly net income. To quote an appropriate day rate or invoice total, you need to gross up that figure accounting for income tax and Class 4 National Insurance.
Real Example: Targeting £2,500/month Net
To take home £2,500/month (£30,000/year) in England in 2025/26: the calculator iterates to find that you need approximately £38,500 gross. At £38,500: income tax = (38,500 – 12,570) × 20% = £5,186; NI = (38,500 – 12,570) × 8% = £2,074; net = £31,240. A further iteration narrows it to exactly £38,010 gross yielding £30,002 net — approximately £2,500/month.
The Iterative Method Explained
Because UK income tax uses progressive bands, there is no single algebraic formula to reverse-calculate gross from net. The correct approach is iterative:
- Start with an initial estimate: divide desired net by 0.72 (assumes roughly 28% combined deductions).
- Calculate income tax and NI on that estimated gross.
- Compare calculated net to target net.
- Adjust gross up or down, repeat until difference is under £1.
Our calculator runs up to 100 iterations and converges to within £1 of your target in under a millisecond.
2025/26 UK Tax Quick Reference
Personal Allowance
£12,570 — first £12,570 of earnings are tax-free.
Basic Rate (20%)
On earnings from £12,571 to £50,270.
Higher Rate (40%)
On earnings from £50,271 to £125,140.
NI Employee (8%)
On earnings £12,570 to £50,270, then 2% above.
Employer NI (13.8%)
Paid by employer above £9,100/year secondary threshold.
Additional Rate (45%)
On earnings above £125,140 (no personal allowance).
Common Net-to-Gross Examples (England, 2025/26)
| Desired Net (Monthly) | Desired Net (Annual) | Gross Needed | Income Tax | NI (Employee) | Employer NI Cost |
|---|---|---|---|---|---|
| £1,000/mo | £12,000 | ~£12,000 | £0 | £0 | £411 |
| £1,500/mo | £18,000 | ~£21,630 | £1,812 | £1,765 | £1,726 |
| £2,000/mo | £24,000 | ~£29,870 | £3,460 | £2,424 | £2,855 |
| £2,500/mo | £30,000 | ~£38,010 | £5,088 | £2,038 | ~£4,000 |
| £3,000/mo | £36,000 | ~£46,330 | £6,752 | £3,580 | ~£5,135 |
| £3,500/mo | £42,000 | ~£54,630 | ~£9,200 | ~£3,012 | ~£6,260 |
| £4,000/mo | £48,000 | ~£63,060 | ~£12,450 | ~£3,077 | ~£7,440 |
Figures are approximate. Use the calculator above for exact results. No pension contributions or student loan assumed.
Employer National Insurance and Total Employment Cost
When businesses consider a hire, they think in terms of total employment cost, not just the salary they advertise. On top of your gross salary, employers pay:
- Employer NI: 13.8% of earnings above £9,100/year (secondary threshold, 2025/26).
- Employer pension contribution: Minimum 3% of qualifying earnings under auto-enrolment.
- Other costs: Recruitment, training, equipment, benefits.
Understanding this helps when negotiating: if you ask for a £5,000 salary increase, the true cost to the employer is approximately £5,690 including the employer NI on that increment (£5,000 × 13.8% = £690 extra NI).
Example: £45,000 Gross Salary — Total Employer Cost
Gross salary: £45,000 | Employer NI: (45,000 – 9,100) × 13.8% = £4,954 | Employer pension (3%): £1,350 | Total cost: ~£51,304. This is why job adverts say "salary up to £45,000" but the employer's budget may be £50,000+.
Scotland: Different Income Tax, Same NI
Scottish taxpayers pay income tax to the Scottish Government at different rates but pay exactly the same National Insurance as the rest of the UK. Scottish 2025/26 income tax bands:
| Band | Earnings Range | Rate |
|---|---|---|
| Starter | £12,571 – £15,397 | 19% |
| Basic | £15,398 – £27,491 | 20% |
| Intermediate | £27,492 – £43,662 | 21% |
| Higher | £43,663 – £75,000 | 42% |
| Advanced | £75,001 – £125,140 | 45% |
| Top | Above £125,140 | 48% |
Our calculator includes Scottish rates — select "Scotland" in the tax region dropdown to compare your gross/net figures under both systems.
Frequently Asked Questions
What is the difference between net and gross salary?
Your gross salary is the full amount your employer pays before any deductions. Your net salary (take-home pay) is what remains after income tax and National Insurance Contributions (NICs) are deducted under the PAYE system. For example, a £40,000 gross salary in England in 2025/26 yields approximately £31,140 net (£2,595/month), with £5,886 income tax and £2,974 in employee NI deducted.
Why can't I just use a simple formula to convert net to gross?
UK income tax is progressive — different portions of your income are taxed at different rates. The same is true for National Insurance. This means a £1 gross increase produces a different net change depending on which band you are in. To convert net to gross accurately, you must use an iterative approach: estimate a gross, calculate tax and NI, compare to target net, adjust, and repeat. Our calculator does this automatically, converging within £1 accuracy.
If I want £2,500 net per month, what gross salary do I need?
To take home £2,500/month (£30,000/year net) in England 2025/26, you need a gross salary of approximately £38,010/year. Breakdown: income tax = (38,010 – 12,570) × 20% = £5,088; NI = (38,010 – 12,570) × 8% = £2,035 (simplified); net ≈ 38,010 – 5,088 – 2,035 = £30,887. The exact figure depends on pension contributions, student loans, and your tax code.
Does employer National Insurance reduce my take-home pay?
No — employer NI is paid by the company on top of your gross salary and does not come out of your pay. However, it does affect your employer's budget. A company with a total compensation budget of £50,000 for a role will advertise a salary of roughly £44,000, retaining about £6,000 for employer NI, pension, and overheads. Understanding this can help in salary negotiations.
How do pension contributions affect my net-to-gross calculation?
Employee pension contributions (whether relief-at-source or salary sacrifice) reduce your taxable income, which reduces both income tax and — for salary sacrifice — National Insurance. This means a 5% salary sacrifice pension contribution on £40,000 does not reduce your net pay by £2,000; the actual cost to you is closer to £1,200 after the tax and NI savings. Our calculator factors in pension contributions so you get an accurate net figure.
What is the personal allowance for 2025/26?
The personal allowance for 2025/26 is £12,570 — unchanged from 2024/25. This is the amount you can earn before paying any income tax. If you earn above £100,000, your personal allowance reduces by £1 for every £2 of income above that threshold, disappearing completely at £125,140 and creating an effective 60% marginal tax rate in that range.
Are there tax-free ways to increase my net pay without a higher gross?
Yes. Several legitimate strategies effectively increase your net pay or reduce your gross-to-net gap: (1) Salary sacrifice for pension, cycle-to-work, or electric car — saves both income tax and employee NI; (2) Childcare vouchers (legacy scheme) or Tax-Free Childcare; (3) Professional subscriptions that qualify for tax relief; (4) Working from home allowance (£6/week tax relief); (5) Marriage allowance transfer if eligible (saves up to £252/year). Use our calculator to model how each impacts your take-home.