From Take-Home Pay to What You Can Borrow
Lenders work from gross, you live on net, and salary sacrifice sits awkwardly between the two.
Lenders work from gross salary and apply an income multiple, then run an affordability assessment against your actual outgoings. You live on net. Salary sacrifice sits awkwardly between the two and reduces the figure they assess.
The gap between what a lender will offer and what is comfortable is usually large, and it is entirely your problem rather than theirs.
What the multiples mean
| Salary | Take-home a month | 4x | 4.5x | Monthly payment at 4.5x over 25 years, 4.5% |
|---|---|---|---|---|
| £30,000 | £2,093.34 | £120,000 | £135,000 | £750.60 |
| £40,000 | £2,693.34 | £160,000 | £180,000 | £1,000.80 |
| £50,000 | £3,293.34 | £200,000 | £225,000 | £1,251.00 |
| £65,000 | £4,021.50 | £260,000 | £292,500 | £1,626.30 |
| £85,000 | £4,988.17 | £340,000 | £382,500 | £2,126.70 |
The test that matters
Take your monthly take-home, subtract the payment, then subtract council tax, insurance, service charge, bills and travel. If what is left is under about 15% of your take-home, the loan is at the top of what is comfortable regardless of what the multiple says.
If you are buying within two years, pausing salary sacrifice for the application period is worth considering — it can move a four-times offer by four times the sacrifice. The salary sacrifice page covers the whole trade.
Questions people actually ask
Do lenders use gross or net income?
Does salary sacrifice reduce what I can borrow?
The numbers this sits on
| Salary | Income tax | National Insurance | Take-home | A month | Effective rate |
|---|---|---|---|---|---|
| £25,000 | £2,486 | £994 | £21,520 | £1,793 | 13.9% |
| £35,000 | £4,486 | £1,794 | £28,720 | £2,393 | 17.9% |
| £45,000 | £6,486 | £2,594 | £35,920 | £2,993 | 20.2% |
| £60,000 | £11,432 | £3,210 | £45,358 | £3,780 | 24.4% |
| £85,000 | £21,432 | £3,710 | £59,858 | £4,988 | 29.6% |
| £110,000 | £33,432 | £4,210 | £72,358 | £6,030 | 34.2% |
Every figure in that table is computed from the published 2026/27 rates by the same engine that runs the calculators on this site, so a number in an article and a number in a calculator can never drift apart. National Insurance uses the statutory period thresholds real payroll uses, which is why these figures reconcile with a payslip rather than nearly reconciling with one.
| Salary | England, Wales, NI | Scotland | With a Plan 2 loan | Keep from the next £1,000 |
|---|---|---|---|---|
| £28,000 | 28.0% | 28.0% | 28.0% | £720.00 |
| £40,000 | 28.0% | 29.0% | 37.6% | £720.00 |
| £52,000 | 42.0% | 44.0% | 51.6% | £580.00 |
| £65,000 | 42.0% | 44.0% | 50.4% | £580.00 |
| £105,000 | 62.0% | 69.5% | 70.4% | £380.00 |
| £130,000 | 47.0% | 50.0% | 56.6% | £530.00 |
Work it out for yourself
- Take-home pay calculatorThe main calculator, all four UK nations.
- Pay rise calculatorWhat a raise really adds.
- Salary sacrificeWhat you are trading.
- Tax code checkerWhat each letter and prefix does.
Figures on this page are for the 2026/27 tax year (6 April 2026 to 5 April 2027) and were last checked on 29 August 2026. Every rate we use is listed on the sources page.