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Updated for 2025/26

£16,820 vs £21,820 Salary Comparison

Compare a £16,820 salary against £21,820. Find out exactly how much more (or less) you will take home after tax.

Gross Difference
+£5,000
per year
Take Home Extra
+£300.00
per month
You Keep
72%
of the raise
5-Year Gain
+£18,000
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

£
£

Comparison Results

Metric£16,820£21,820Difference
Gross Salary£16,820£21,820£5,000
Income Tax£850£1,850£1,000
National Insurance£340£740£400
Pension£0£0£0
Take-Home Pay (Yearly)
£15,630
£19,230
£3,600
Take-Home (Monthly)£1,303£1,603£300
Effective Tax Rate7.1%11.9%4.8%

£16,820

Gross£16,820
Take-Home£15,630
You Keep92.9%

£21,820

Gross£21,820
Take-Home£19,230
You Keep88.1%

Tax Band Analysis

Understanding where your money goes

£16,820

Tax BandBasic Rate
Marginal Rate20%
Income Tax£850.00
National Insurance£340.00
Take Home (Monthly)£1,302.50

£21,820

Tax BandBasic Rate
Marginal Rate20%
Income Tax£1,850.00
National Insurance£740.00
Take Home (Monthly)£1,602.50

What £300.00 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

Full Comparison: £16,820 vs £21,820

£16,820

  • Gross Pay£16,820.00
  • Take Home (Year)£15,630.00
  • Take Home (Month)£1,302.50
  • Effective Tax Rate7.1%

£21,820

  • Gross Pay£21,820.00
  • Take Home (Year)£19,230.00
  • Take Home (Month)£1,602.50
  • Effective Tax Rate11.9%

The difference in take-home pay is £3,600 per year, which works out to £300.00 per month.