Salary Sacrifice Saving Calculator

Work out salary sacrifice saving instantly with clear inputs, formula shown and shareable results.

About Salary Sacrifice Saving Calculator

Salary sacrifice exchanges gross pay for a benefit such as pension, so both income tax and social contributions are avoided on the sacrificed amount. That makes the net cost to take-home well below the amount contributed.

Formula

Salary sacrifice

Net cost = amount × (1 - marginal rate - contribution rate)

Worked example

With the default values below, Salary Sacrifice Saving Calculator returns Net Cost To Take-Home Pay of $124,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Amount Sacrificedminimum 0: 200,000
Marginal Tax Rateaccepts 0–60 %: 30 %
Social Contribution Rateaccepts 0–20 %: 8 %

Results

Net Cost To Take-Home Pay: $124,000.00
Income Tax Saved: $60,000.00
Social Contributions Saved: $16,000.00
Total Relief On The Amount Sacrificed: 38.000%

Step by step

1Values used
2Salary sacrifice
3Net Cost To Take-Home Pay= 124,000.00
4Income Tax Saved= 60,000.00
5Social Contributions Saved= 16,000.00
6Total Relief On The Amount Sacrificed= 38.000

Assumptions and limits

The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, fees or charges or compounding frequency into account.
Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.

Frequently Asked Questions

Why is sacrifice better than a personal contribution?

Because it also saves social contributions, which personal contributions from net pay do not.

Are there downsides?

Lower gross salary can reduce borrowing capacity, some benefit entitlements and cover based on salary.