Take-home pay
Take-home pay is the amount that reaches your bank account after tax, National Insurance and other deductions such as pension and student loan payments.
Also known as: net pay, net income
It is the right figure to use when you budget, because it is the money you can actually spend. Gross pay, by contrast, is what you earn before deductions. If your pay varies, use an average from several months or the lowest amount you expect.
If you are self-employed, set money aside for tax throughout the year, and treat only what is left after tax as take-home income.
Our free budget planner can help you put this into practice, and nothing you enter is stored.
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8 min readReadThis page provides general information only. It is not personalised financial, legal or tax advice, and rules and figures can change. Your situation is unique — please check official sources such as GOV.UK and MoneyHelper, and speak to a qualified, FCA-authorised adviser before making important decisions about your money.