CHERRY MONEY · FREE BUSINESS TOOLS

A clearer view of
your team’s cost.

UK Payroll Cost Calculator

Plan salaries, employer National Insurance and pensions in one place.
See what your next hire could mean for your budget.

2026/27 ratesNo sign-upCSV & print export

Build your team

Add one person or a group on the same salary and NI category. Use a role or label; names are not needed.

Tax year

Employer pension

Contribution basis

Employer contribution (%)

Default: 3% on earnings between £6,240 and £50,270 per person. Assumes every listed employee participates. This does not assess enrolment duties or pension scheme compliance.

Employment Allowance I have checked eligibility and want to apply Employment Allowance.

Up to £10,500 per employer per tax year. Check HMRC eligibility (opens in a new tab), including sole-director, public-sector, connected-company and excluded-worker rules. The old £100,000 NI cap no longer applies.

Your entries stay on this page. This calculator does not save them or send them to Cherry Money or HMRC.

YOUR BUDGET AT A GLANCE

Estimated employer cost

Add your team, then select Calculate team cost.

Your payroll breakdown

Annual group totals before Employment Allowance. The allowance is deducted once in the summary above.

Annual employer costs by employee group, in pounds
Employee / group	People	Gross salaries	Employer NI	Pensions	Total cost

How this estimate works

Employer NI

For the standard category, this model applies 15% to annual pay above £5,000 per person. For qualifying under-21 employees and apprentices under 25, it applies 15% above £50,270. The selected category must apply for the entire year.

Pensions

Choose contributions on qualifying earnings, full gross salary, or exclude pensions. The default is 3% on the £6,240–£50,270 band. Pension costs are added to the employer budget, not deducted from salary.

A planning estimate

Assumes a full year of regular pay using annual thresholds, rounding each person’s annual NI and pension to the nearest penny. Actual payroll uses pay-period thresholds and rounding, so results can differ.

Excludes employee take-home pay, salary sacrifice, part-year work, age or NI category changes, special NI reliefs other than those listed, benefits, statutory pay adjustments, Apprenticeship Levy and other employment costs. This tool does not assess minimum wage or automatic enrolment compliance and does not submit payroll to HMRC.

Official rates and guidance

Rates checked 22 October 2026. Supports 2025/26 and 2026/27 only. Review estimates with your payroll adviser before making decisions.