Accountants Pension Contribution (Monthly) Calculator
Estimate your monthly pension contributions, employer contributions, tax relief and effective monthly cost from your salary.
Overview
Use this monthly pension contribution calculator to estimate how much may be paid into your pension from your salary, personal contributions and employer contributions. It also gives a simple illustration of tax relief and the estimated monthly cost to you.
How it works
The calculator divides your annual salary by 12, then applies your personal and employer contribution percentages to that monthly salary. Any additional fixed contribution is added to your personal amount. It combines personal and employer funding to estimate the monthly and annual pension contribution. The effective personal cost is illustrated by deducting estimated tax relief at the rate you enter. Actual treatment can vary depending on whether contributions use relief at source, net pay or salary sacrifice.
How to use this calculator
- 1Enter your annual gross salary.
- 2Add the percentage of salary you plan to contribute personally.
- 3Enter your employer's contribution percentage.
- 4Choose an estimated income tax relief rate.
- 5Add any fixed extra monthly contribution and review the results.
Example Calculation
Annual gross salary
$60,000
Personal contribution rate
8%
Employer contribution rate
5%
Estimated income tax relief rate
20%
Additional monthly contribution
$0
Total monthly pension contribution
$650
At a £60,000 salary, an 8% personal contribution and 5% employer contribution produce an estimated £650 per month in total pension funding. The personal contribution is £400 per month and its illustrated effective cost after 20% tax relief is £320 per month.
Frequently asked questions
What is included in the monthly pension contribution?
The total includes your percentage-based personal contribution, any additional fixed monthly amount and the estimated employer contribution.
How is the employer pension contribution calculated?
It is calculated by applying the employer contribution percentage to the annual salary entered and dividing the result into monthly amounts.
Why is the effective monthly cost lower than my contribution?
The calculator subtracts estimated income tax relief from your personal contribution. The actual amount and timing of relief depend on your pension arrangement and tax position.
Does this calculator include salary sacrifice?
No. It provides a simplified tax-relief illustration and does not separately calculate salary sacrifice or possible National Insurance savings.
Does the result check pension annual allowance limits?
No. It does not assess annual allowance, tapered allowance, carry forward rules or other limits that may apply to pension contributions.
Are employer contributions included in my personal tax relief?
No. The estimated tax relief is applied only to the personal contribution calculated by this tool.
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Assumptions and warnings
Assumptions
- All figures are estimates and use a 12-month year.
- Employer contributions are calculated as a percentage of the gross salary entered.
- The tax relief calculation is simplified and applies the selected rate to the full personal contribution.
- The calculation does not test annual allowance limits, carry forward, tapered annual allowance, scheme charges or investment performance.
- Currency values are shown in pounds sterling.
Warnings
- This calculator provides an estimate only and is not financial or tax advice.
- Pension tax relief, salary sacrifice arrangements and contribution limits depend on your circumstances and pension scheme.
- Check contribution arrangements and current tax rules with your employer, pension provider or a qualified professional before making significant decisions.