When you secure your first job, especially after graduation, the primary question you want to know is how much of your salary you’ll actually be taking home. To aid you with this, NatWest has recently introduced a Salary Calculator that saves you having to deduct tax and other payments yourself.
It might be your initial reaction to view your salary as the full amount and completely disregard any payments, either because you were unaware of the amount of tax that is deducted, or you simply haven’t worked them out yet. The salary calculator is a simple tool that helps to put your wages into perspective.
Calculating Your Expenses
Tools such as this are a great way to help you budget, as you’ll know exactly how much take home pay you will receive. Once you’ve made your calculations, you can then consider how much you will spend on rent, savings, groceries and other finances to work out how much disposable income you have left. For those who are renting, knowing how much you can afford is critical in order to avoid neglecting future payments and sorting out your finances well in advance will save you a lot of time and stress should you ever decide to move.
Checking your take-home salary only takes a few minutes, and once it’s done you’ll be fully aware of what you’re actually receiving. Once you’ve found out how much tax you pay, plus national insurance, you can then continue to deduct any other expenses. For instance your student loan if you are a recent graduate or any pension schemes you may pay into.
Another useful way to use the salary calculator is when you’re granted a promotion or you’re applying for a job with a different salary. From what is advertised, you can instantly work out how much of the salary you get to keep, resulting in greater clarification on how the change will affect you financially.