National Insurance calculator
What National Insurance actually costs you, why it stops rising above £50,270, and what those contributions buy.
Your National Insurance
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| National Insurance a year | — |
|---|---|
| A month | — |
| At 8% (£12,570–£50,270) | — |
| At 2% (above £50,270) | — |
| Effective NI rate | — |
| Income tax for comparison | — |
The rates
| Your earnings | Employee NI rate |
|---|---|
| Up to £12,570 | 0% |
| £12,570 to £50,270 | 8% |
| Above £50,270 | 2% |
The rate goes down, not up
Almost every tax rises with income. National Insurance does the opposite at the top: above £50,270 the marginal rate drops from 8% to 2%. Combined with income tax rising from 20% to 40% at the same point, the total marginal rate goes from 28% to 42% — a jump, but a smaller one than income tax alone suggests, and the reason a pay rise across that threshold is less punishing than people fear.
What it buys
Unlike income tax, NI builds entitlement. You need 10 qualifying years for any new State Pension and 35 for the full amount. A qualifying year is earned by paying NI, or by receiving National Insurance credits — which come automatically with Child Benefit for a child under 12, Carer's Allowance, and several other benefits.
This matters practically: a parent who opts out of Child Benefit because of the High Income Child Benefit Charge can lose qualifying years without noticing. Registering for Child Benefit and electing to receive none preserves the credit. It is one of the more consequential pieces of admin in the UK system and one of the least well known.
Self-employed
Class 2 has effectively been abolished for most people while still counting toward the State Pension, and Class 4 is charged on profits at rates broadly parallel to the employee bands. This calculator covers employees on Class 1 only.
Common questions
How much National Insurance do I pay on £35,000?
About £1,794 a year, or £150 a month — 8% of the amount between £12,570 and £35,000. Nothing is charged on the first £12,570.
Why does National Insurance drop to 2%?
Above £50,270 the marginal rate falls from 8% to 2% by design. It makes NI mildly regressive at the top and partly offsets the jump from 20% to 40% income tax at the same threshold.
How many years of National Insurance do I need for a full State Pension?
35 qualifying years for the full new State Pension, and at least 10 to receive anything at all. Years can be earned through paying NI or through credits.
Does salary sacrifice reduce National Insurance?
Yes. Salary sacrifice reduces the pay that both income tax and National Insurance are charged on, which is why it is more efficient than a relief-at-source pension contribution.
Do I still get credits if I opt out of Child Benefit?
Only if you register for Child Benefit and elect to receive nothing. Simply not claiming means no National Insurance credit, which can quietly cost qualifying years toward your State Pension.
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