Take-home Pay Calculator

These calculations are based on 40 hours per week over 52 weeks.


If you're thinking of working through an umbrella company, you probably want to know how much of your money you can expect to get paid.


The difference between your current pay and the salary you will receive from an umbrella company depends on several different factors:


  • How much you earn gross each year.

  • How much you pay in allowable business expenses.

  • Whether you fall within the scope of IR35.


Remember that your gross earnings are not a fair reflection of your actual income as a contractor, as you must eventually pay tax on what you earn.


Because of this, when comparing your current earnings with your expected salary from an umbrella company, you should always make an appropriate adjustment to take off your income tax and National Insurance contributions.


Also remember that by working through an umbrella company, you can make deductions for certain allowable business expenses - so if you are currently paying PAYE on an agency payroll with no entitlement to expenses, this can be a significant factor too.


This take-home pay calculator will help you to understand how much you can expect to receive each week and each month from an umbrella company, so you have a benchmark figure that you can compare with your current arrangements and other options.

How to use our take-home pay calculator


It's very easy to find out your expected income from an umbrella company. Just choose whether you want to base the calculation on an hourly or daily rate.


Next, adjust the slider to the correct position. You'll see the weekly and monthly salary totals change instantly, to tell you how much you should receive via an umbrella company, from your gross earnings.


The instant calculator can also help you to see how your net salary will change if your hourly or daily rate goes up or down in the future, so you know exactly where you stand.

Remember the non-financial benefits


Don't forget to factor in the non-financial benefits of working via an umbrella company, as well as the additional financial benefits like business expenses and statutory sick pay.


Your contract may allow you to take holidays, and unlike an agency, your umbrella company usually will not insist that you accept any specific jobs, or ask you to work in a certain place at a certain time - you remain in control of your career.


The continuity of employment under an umbrella company's contract can help you qualify for loans and mortgages, you'll likely save a lot of admin time, and your cash flow will be smoother with no lump sums of tax to pay at the end of the year.

Need a tailored quote?


Our take-home pay calculator is designed to tell you instantly how much your salary will be, based on your gross earnings, but we understand that individual circumstances may vary.


If you think your work life is unusual or you'd just like a personal quote for your expected salary, you can call us on 01925 912200 or email info@mypayplus.co.uk and we'll be happy to discuss your circumstances and how they might affect your bottom-line income.


What is an umbrella company?

An umbrella company allows agency workers to engage in temporary contracts in a compliant and hassle-free way. You will become an employee of the Umbrella Company and will work under an employment contract.

The umbrella company then contracts out your services to the recruitment agency/client. In 2021, the Off-Payroll Working Rules were also reformed, making this an even more complicated area to navigate, and an experienced umbrella company can help you to adjust your setup to account for this. For many contractors, umbrella companies are a

way to protect your IR35 status, so that you can avoid exposure to the complex and

costly rules put in place by IR35 legislation.

How is umbrella pay calculated?

An umbrella rate or umbrella income is subject to statutory employer deductions, these include National Insurance, Apprenticeship levy and any workplace pension deductions (if applicable). The umbrella company will also charge a fee for the processing of your timesheets. Once these have been deducted, you will see your weekly gross earnings.


Your gross earnings are then subject to statutory employee deduction:

  • PAYE Tax and National Insurance

  • Pension contributions

  • Student/Postgraduate Loans, Child maintenance


As an employee of the umbrella company, you are still legally entitled to your tax-free

personal allowance and holiday pay.

How do umbrella companies calculate holiday pay?

Full-time employees in the UK are entitled to 5.6 weeks of paid holiday leave each year, equal to 28 days for those who work five or more days a week. This is inclusive of public holidays.


If you work less than full-time equivalent hours under an umbrella company, your paid leave entitlement will be adjusted accordingly.


You can have holiday pay in the form of accrual or credit.


Accrual means that we as the employer will withhold your holiday pay, and use these funds to pay you when you do take time off. Credit means that you will be paid your holiday pay in advance for each day that it is accrued, meaning that you manage your finances accordingly, and will not receive any pay when you take leave.

How much will I take home?

Everyone’s situation is different, depending on the hours they intend to work, and the umbrella rate that is being offered.

For a fast estimate of how much take-home pay you will receive compared to your current gross earnings, use our Take-Home Pay Calculator.


You can also contact us directly for a more in-depth discussion or contact us via the website.

How to calculate contractor salary?

Contractors work very different schedules, ranging from just a few hours per week to a more than full-time commitment.


This makes it difficult to compare contractor salaries directly, without adjusting them to take into account the number of hours worked and the hourly rate of pay.


Because of this, it's normal to calculate a pro-rata salary, equivalent to the weekly or annual earnings of a full-time employee - we'll look at this in detail below.

How to calculate pro-rata salary?

A 'pro rata' salary accounts for the difference between the number of hours you work as a contractor, and the number of hours a full-time employee would work.


For example, if you work 30 hours a week, your earnings will be 75% of a full-time equivalent (FTE) salary based on a 40-hour full-time working week.


You can think of it as your hourly contractor rate, multiplied by 40 for a weekly FTE salary. You can then multiply the result by 52 to get an annual FTE salary.


The simple formula for this is:

Weekly FTE salary = 40 x Contractor earnings per week/number of hours worked per week

Annual FTE salary = 52 x Weekly FTE salary