Side-by-side comparison of two roles at gross and net using user-entered tax rates.

A 45,000 vs 55,000 role at 25% and 30% effective tax rates respectively gives net pay of 33,750 vs 38,500 — a 4,750 net gap on a 10,000 gross difference. The net gap is 47.5% of gross, reflecting the tax drag on the higher income. Jurisdictions with steep progression can reduce the real gap much more.

How to use it

Enter both gross annual salaries and the effective tax rate that applies to each (this reflects band differences). Use your own rates based on your jurisdiction — the tool doesn't assume any specific tax code.

What the result means

Primary is the net gap (how much more take-home the higher role provides). Secondary shows net pay for each role, gross gap, and the proportion of the gross gap that survives tax.

Common gotcha

Promotions that push you into a higher tax band often feel smaller in net terms than expected. A 20% gross rise might net only 12-15% after higher-rate tax kicks. This tool makes that explicit before you accept or decline.

Quick example

With role a gross salary of 45,000 and role a effective tax of 25% (plus role b gross salary of 55,000 and role b effective tax of 30%), the result is 4,750.00. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Role A Gross Salary, Role A Effective Tax, Role B Gross Salary, and Role B Effective Tax. Two inputs usually tip the answer one way or the other. Identify which ones matter most by flipping each value past a round threshold and watching whether the winning option changes.

What's happening under the hood

Net pay for each role equals gross × (1 − effective tax rate). Net gap is role B net minus role A net. User supplies rates to keep the tool evergreen across jurisdictions and tax years. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

Using this in pay negotiations

Knowing the exact figure behind a headline rate gives you specific numbers to anchor to in conversations about pay. "The difference is £X per month after tax" lands harder than "a couple of grand a year". Concrete numbers move decisions.

What this doesn't capture

Tax bands, pension contributions, student-loan deductions, and benefits-in-kind sit outside this calculation. The figure is the headline; your actual position depends on local tax rules and personal circumstances. Pair with a dedicated take-home calculator for the full picture.