ESTIMATED MONTHLY PAYE DEDUCTIONS
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Enter your PAYE details to calculate.
This calculator gives a simplified PAYE estimate for the 2026/27 tax year. It does not include student loans, benefits, bonuses, tax code adjustments or every payroll situation.
How to calculate PAYE
PAYE stands for Pay As You Earn. It is the system employers use to deduct income tax and National Insurance from wages before pay is received.
Formula used
The simplified calculation is:
PAYE deductions = income tax + employee National Insurance
Example: £36,000 salary
Annual salary = £36,000
Income tax is estimated using the relevant tax bands after the Personal Allowance.
Employee National Insurance is estimated using the Class 1 employee thresholds.
The estimated annual deductions are then divided by 12 to show a monthly PAYE deduction estimate.
What this calculator is for
This calculator estimates PAYE deductions from annual salary. It can help show how much may be deducted through payroll before take-home pay is received.
PAYE and take-home pay
PAYE deductions reduce gross pay to produce take-home pay. Your actual payslip may also include pension contributions, student loan repayments, salary sacrifice, benefits, bonuses or other adjustments.
Important note
This tool is a simplified guide. Actual PAYE deductions can vary depending on your tax code, payroll frequency, pension scheme, student loan plan, benefits, bonuses, overtime, salary sacrifice and employer payroll settings.
Frequently Asked Questions
What does PAYE mean?
PAYE means Pay As You Earn. It is the payroll system used to collect income tax and National Insurance from employees.
What does this PAYE calculator estimate?
It estimates income tax, employee National Insurance and total monthly PAYE deductions from an annual salary.
Does this include pension contributions?
You can enter an optional pension contribution percentage. The calculator uses this to reduce the estimated taxable salary before calculating tax and National Insurance.
Does this include student loans?
No. This version does not include student loan repayments.
Can my actual PAYE be different?
Yes. Your actual PAYE deductions can vary depending on your tax code, pay frequency, pension scheme, benefits, bonuses, student loans and payroll settings.