Finance & Business
National Insurance Calculator UK
Calculate your National Insurance contributions for. Enter your annual income to see employee Class 1 NI, employer NI, or self-employed Class 4 NI with a full band breakdown.
Reviewed by the calculator.uk.com Team · Last reviewed 29 June 2026 · Our methodology
Enter your income details to calculate your National Insurance contributions.
Class 1 thresholds by pay period
Employees pay NI on each pay period separately, so payroll uses the weekly or monthly figure, not the annual one. Earnings between the Lower Earnings Limit and the Primary Threshold cost nothing but still build up a qualifying year for the State Pension.
| Threshold | Weekly | Monthly | Annual |
|---|---|---|---|
| Lower Earnings Limit (counts towards State Pension) | £129 | £559 | £6,708 |
| Secondary Threshold (employer NI starts) | £96 | £417 | £5,000 |
| Primary Threshold (employee NI starts) | £242 | £1,048 | £12,570 |
| Upper Earnings Limit (employee rate drops to 2%) | £967 | £4,189 | £50,270 |
What an employee costs once employer NI is added
| Salary | Employee NI | Employer NI | Salary + employer NI |
|---|---|---|---|
| £25,000 | £994 | £3,000 | £28,000 |
| £30,000 | £1,394 | £3,750 | £33,750 |
| £40,000 | £2,194 | £5,250 | £45,250 |
| £50,000 | £2,994 | £6,750 | £56,750 |
| £60,000 | £3,211 | £8,250 | £68,250 |
| £100,000 | £4,011 | £14,250 | £114,250 |
For anyone earning above £12,570, the employer now pays more NI than the employee. At £30,000 the employer's bill (£3,750) is more than two and a half times the employee's (£1,394), which is why salary sacrifice pension schemes are attractive to both sides — every £1 sacrificed saves the employer 15p.
Worked example: a small café using the Employment Allowance
A café in Bristol employs a manager on £30,000 and two baristas on £25,000 each. Its employer NI bill is £3,750 + £3,000 + £3,000 = £9,750. The Employment Allowance lets eligible employers knock up to £10,500 a year off their employer NI, so the café pays nothing. If it hired a third barista on £25,000, the bill would reach £12,750 and it would pay the £2,250 above the allowance. A limited company whose only employee is a director paid above the Secondary Threshold cannot claim the allowance.
Employed vs self-employed on £40,000
An employee earning £40,000 pays £2,194.40 in Class 1 NI: 8% of £27,430. A sole trader with £40,000 of profit pays £1,645.80 in Class 4 NI: 6% of the same £27,430. Class 2 NI is no longer compulsory, but self-employed people with profits below the £7,105 Small Profits Threshold can pay it voluntarily at £3.65 a week to protect their State Pension record — usually a far cheaper way to fill a gap than voluntary Class 3 contributions.
Related to National Insurance Calculator UK
This calculator applies the 2026/27 National Insurance rates and thresholds set by HMRC. It covers three scenarios: employees paying Class 1 NI, employers paying Class 1 NI, and self-employed individuals paying Class 4 NI. Class 2 NI was abolished from April 2024 and no longer applies to the self-employed.
Employee Class 1 NI (2026/27)
Employees pay nothing on earnings up to the Primary Threshold of £12,570 per year. Between £12,570 and the Upper Earnings Limit of £50,270, the rate is 8%. Above £50,270 a reduced rate of 2% applies. These contributions are deducted directly from your pay via PAYE.
Employer Class 1 NI (April 2025 Changes)
From April 2025, the employer Secondary Threshold was reduced from £9,100 to £5,000 per year. Employers pay 15% on all earnings above this threshold. Eligible businesses can also claim the Employment Allowance, which increased to £10,500 per year in April 2025, offsetting their employer NI bill.
Self-Employed Class 4 NI (2026/27)
Self-employed people pay Class 4 NI on their annual profits. No NI is due on profits up to £12,570. Between £12,570 and £50,270 the rate is 6%, and 2% applies above £50,270. Class 2 NI was abolished from April 2024, so there is no longer a flat weekly charge. Class 4 NI is paid via Self Assessment.
The effective NI rate shown in the results is calculated by dividing your total NI liability by your gross income. This gives you a single percentage that represents the overall proportion of your income spent on National Insurance, which is useful when comparing different income levels or employment arrangements.
The results panel shows your annual and monthly NI liability alongside a band-by-band breakdown and an effective rate. Understanding each figure helps you plan your finances and compare different employment arrangements accurately.
Key Figures Explained
Annual NI: The total Class 1 or Class 4 NI you owe for the full tax year.
Monthly NI: Your annual NI divided by 12, useful for budgeting.
Effective NI Rate: Total NI as a percentage of gross income — your overall NI burden.
Employer NI: The separate cost your employer pays on top of your salary; this does not affect your take-home pay but represents the true cost of employing you.
Employment Allowance: A relief that reduces an employer's NI bill by up to £10,500 per tax year.
The pie chart illustrates how your gross income is split between NI and take-home pay. For employed workers, this shows only the employee share of NI — to see the full cost to your employer, enable the "Show Employer NI" toggle. The band breakdown table is particularly useful if you are close to a threshold, as it lets you see exactly how much of your income falls in each band and what rate applies.
Employed vs Self-Employed Comparison
At the same income level, self-employed individuals generally pay less NI than employees. For example, at £35,000 an employee pays 8% on income between £12,570 and £35,000 (approx. £1,794), whereas a self-employed person pays 6% on the same band (approx. £1,346). However, self-employed people may build up fewer NI qualifying years for State Pension purposes unless contributions are credited.
Remember that this calculator provides an estimate. Your actual NI deductions may differ slightly because PAYE systems calculate NI on each pay period individually rather than annualising the figure in all circumstances. For definitive figures, refer to your payslip or HMRC's own tools.
1. What changed for National Insurance in April 2025?
The most significant April 2025 change was to employer NI. The Secondary Threshold — the point at which employers begin paying NI — was cut from £9,100 to £5,000 per year, and the employer NI rate rose from 13.8% to 15%. To partially offset the impact on small businesses, the Employment Allowance was increased from £5,000 to £10,500 per year. Employee NI rates and thresholds remained unchanged from 2024/25 at 8% between £12,570 and £50,270, and 2% above £50,270.
2. Is Class 2 NI still payable by the self-employed?
No. Class 2 NI — previously a flat weekly charge paid by self-employed individuals with profits above the Small Profits Threshold — was abolished from 6 April 2024. Self-employed people now only pay Class 4 NI based on their annual profits. Those with profits below £12,570 no longer automatically receive NI credits towards the State Pension through Class 2, so it is worth checking your NI record if your profits are low.
3. Does employer NI affect my take-home pay?
Employer NI is paid directly by your employer on top of your salary and does not reduce your take-home pay. However, it does represent the true cost of employing you. If you are negotiating a salary or considering a contractor versus employee arrangement, understanding the employer NI cost can help both parties make informed decisions. The Employment Allowance can significantly reduce this cost for eligible smaller businesses.
4. How does National Insurance affect my State Pension entitlement?
You need 35 qualifying years of NI contributions or credits to receive the full new State Pension, and at least 10 qualifying years to receive any State Pension at all. Each tax year in which you pay enough NI — or receive NI credits (for example, while claiming Child Benefit or Jobseeker's Allowance) — counts as one qualifying year. Employees, employers, and self-employed people all build up qualifying years through their NI payments. You can check your NI record and State Pension forecast through the HMRC Personal Tax Account.
5. What is the scientific source for this calculator?
This calculator uses the official employee, employer, and self-employed National Insurance rates and thresholds published by HMRC for the 2026/27 tax year, which derive from the Social Security Contributions and Benefits Act 1992 and the annual secondary legislation that updates rates and thresholds each April. The Primary Threshold (£12,570), Upper Earnings Limit (£50,270), employer Secondary Threshold (£5,000), and Employment Allowance (£10,500) all reflect the changes confirmed in the Autumn Budget 2024. The abolition of Class 2 NI for the self-employed from 6 April 2024 followed the National Insurance Contributions (Reduction in Rates) Act 2023.