Pension Contribution Calculator

Contributing to a pension is one of the most tax-efficient ways to save for retirement. The government incentivises saving by providing tax relief on your contributions. This means that some of the money that you would have paid in tax goes into your pension pot instead. This Calculator Site tool shows you how your contributions affect your take-home pay and the true cost of your investment.

Relief at Source vs. Salary Sacrifice

There are two main ways you can receive tax relief: 'relief at source' (the default in this calculator) and 'salary sacrifice'. With relief at source, your employer deducts your contribution from your post-tax pay and your pension provider claims 20% tax relief from the government. Higher-rate taxpayers can claim more via self-assessment. Our Income Tax Calculator can help.

Salary sacrifice involves reducing your gross salary, with the sacrificed amount paid directly into your pension. This reduces your Income Tax and National Insurance bill. Your employer also saves on their NI contributions and may pass this saving on to you. See how this works with our Pro-Rata Salary Calculator.

Understanding the key thresholds and allowances is crucial for maximising your pension savings. These figures for the 2026/27 tax year are essential for effective retirement planning.

You can contribute up to 100% of your earnings, capped at the £60,000 annual allowance. Exceeding this may result in a tax charge, though you can sometimes carry forward unused allowance from previous years. Check your potential liability with our Income Tax Calculator.