Updated for 2025/26
£12,420 vs £20,520 Salary Comparison
Compare a £12,420 salary against £20,520. Find out exactly how much more (or less) you will take home after tax.
Gross Difference
+£8,100
per year
Take Home Extra
+£489.50
per month
You Keep
73%
of the raise
5-Year Gain
+£29,370
cumulative
Entry-Level Career Progression
This comparison is typical for early career moves or first promotions. At this salary range, most of your income is taxed at the basic rate (20%), so you keep a higher percentage of any raise.
- Negotiate hard - you keep ~70-80% of any increase at this level
- Consider employers offering good pension matching (often worth more than small salary differences)
- Look for roles with clear progression paths to higher bands
- Factor in benefits like free lunches, gym memberships, or transport subsidies
Compare Salaries
Enter multiple salaries to compare take-home pay for 2025/26
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Comparison Results
| Metric | £12,420 | £20,520 | Difference |
|---|---|---|---|
| Gross Salary | £12,420 | £20,520 | £8,100 |
| Income Tax | £0 | £1,590 | £1,590 |
| National Insurance | £0 | £636 | £636 |
| Pension | £0 | £0 | £0 |
| Take-Home Pay (Yearly) | £12,420 | £18,294 | £5,874 |
| Take-Home (Monthly) | £1,035 | £1,525 | £490 |
| Effective Tax Rate | 0.0% | 10.8% | 10.8% |
£12,420
Gross£12,420
Take-Home£12,420
You Keep100.0%
£20,520
Gross£20,520
Take-Home£18,294
You Keep89.2%
Tax Band Analysis
Understanding where your money goes
£12,420
Tax BandPersonal Allowance
Marginal Rate0%
Income Tax£0.00
National Insurance£0.00
Take Home (Monthly)£1,035.00
£20,520
Tax BandBasic Rate
Marginal Rate20%
Income Tax£1,590.00
National Insurance£636.00
Take Home (Monthly)£1,524.50
Tax Band Change: This salary increase crosses from the Personal Allowance (0%) into the Basic Rate (20%). The portion above £12,570.00 will be taxed at the higher rate.
What £489.50 Extra Buys You
Real-world value of the take-home difference
Monthly Subscriptions
Netflix, Spotify, gym - £100.00/mo
Weekend Breaks
1-2 UK getaways per month at this budget
Savings Boost
£5,874.00/year extra into savings or investments
Full Comparison: £12,420 vs £20,520
£12,420
- Gross Pay£12,420.00
- Take Home (Year)£12,420.00
- Take Home (Month)£1,035.00
- Effective Tax Rate0.0%
£20,520
- Gross Pay£20,520.00
- Take Home (Year)£18,294.00
- Take Home (Month)£1,524.50
- Effective Tax Rate10.8%
The difference in take-home pay is £5,874 per year, which works out to £489.50 per month.