Tax calculator

Payroll Cost Calculator

Estimate the annual cost of one standard category A employee for 2026/27.

  • Tax year shown with the calculator
  • Assumptions explained
  • Source-linked methodology

2026/27 tax year

Estimate the annual cost of an employee

Add gross salary, estimated employer National Insurance, the employer pension contribution and other annual employment costs.

Salary before PAYE, employee National Insurance or pension deductions.

Enter £0 if none. Use the employer contribution amount for the scheme, not an assumed percentage of salary.

Optional costs such as equipment, training, insurance or recruitment. Enter £0 if none.

Your figures are used only for this calculation. They are not added to a lead record or analytics event.

What this estimate includes and excludes

The employer National Insurance estimate is for one standard category A employee and uses the published annual £5,000 Secondary Threshold and 15% rate. Actual payroll results can differ by pay frequency, irregular payments and payroll rounding.

Employment Allowance is not deducted because it applies across an eligible employer’s Class 1 liability, not automatically to one employee. Special NI categories, Apprenticeship Levy, Class 1A or 1B charges, salary sacrifice and pension compliance are also excluded.

How to understand your result

Your result is an estimate for the tax year shown on the calculator. The breakdown lists each step, the rates and thresholds used, and the date the figures were last checked against GOV.UK. Amounts are rounded the way HMRC rounds them where a rule exists.

Each calculator lists what it leaves out, such as other income, reliefs or special cases, so read the assumptions before you rely on the figure. For your own position, check your HMRC online account or speak to a qualified professional.