Compare an employment salary with a sole trader business. Enter client revenue and allowable business expenses to see what could remain after estimated annual taxes and loan repayments.
1. Enter your details
The starting numbers are examples. Replace them with your own. Results update below the form.
Leave at 0 if there is no bonus. Included in annual averages, not a prediction of a particular month’s payslip.
Student loans — noneWhich student loan plan am I on?
Use your funding body and course start date, not the location of your university. Check your Student Loans Company account if unsure.
Plan 1: Student Finance England or Wales, course started before 1 September 2012; or Student Finance Northern Ireland.
Plan 2: Student Finance England, undergraduate/PGCE course started 1 September 2012–31 July 2023; or Student Finance Wales, undergraduate/PGCE started from 1 September 2012. England’s Higher Education Short Course Loans also use Plan 2.
Plan 4: Student Awards Agency Scotland funding, including postgraduate study.
Plan 5: Student Finance England, undergraduate/PGCE course started from 1 August 2023. Advanced Learner Loans follow England’s relevant start-date rules.
Postgraduate: England/Wales master’s or doctoral loan. Tick the separate box; it can apply alongside another plan.
Total expected income from clients, not a salary. Allow for unpaid holidays and gaps between contracts.
Actual deductible costs, not personal spending or drawings. This model uses expenses, not the trading allowance.
This first comparison excludes pensions on both sides. It compares two alternative full-year situations, not employment plus a side business. It is not an umbrella or limited-company calculation.
Every slice is part of your pay. Employer contributions and provider tax relief are shown separately below.
79.8%take-home
Take-home pay£2,993.3079.8%
Income Tax£540.5014.4%
National Insurance£216.205.8%
Sole trader — after expenses and estimated tax
Client revenue (excluding VAT)
£60,000.00
Business expenses
£5,000.00
Profit before personal tax
£55,000.00
Income Tax
£9,432.00
Class 4 National Insurance
£2,356.60
Student and postgraduate loans
£0.00
Annual money left after estimated liabilities
£43,211.40
Monthly equivalent
£3,600.95
£607.65 more per month than the PAYE scenario. This is not a like-for-like benefits comparison or a recommendation to change employment status.
A sole trader must fund holidays, sick time, pension and time without work. Tax may be paid later through Self Assessment; reserve for it. Payments on account affect cash timing and are not extra tax. Voluntary Class 2 contributions, losses, other income, pension relief and tax adjustments are excluded. Employment status depends on the actual working arrangement, not which calculation looks better.
Assumptions and official sources
Annualised 2026/27 estimates for a full tax year, standard Personal Allowance and a person below State Pension age. No custom tax codes, taxable benefits, other income, multiple jobs, workplace share schemes or charity deductions in these planning tools. Pension annual-allowance limits and minimum-wage eligibility are not checked. Use the main calculator for SIP, SAYE and GAYE. Estimates are not payroll or personalised tax advice.
Checked 23 September 2026. Your input figures are calculated in your browser; these tools do not upload your salary.
Worked sole trader examples
Examples use 2026/27 England, Wales and Northern Ireland rates, no student loans, no pension and no bonus. They are independent of the inputs above. Your own settings can produce different results.
With £60,000.00 annual revenue and £5,000.00 allowable expenses, profit is £55,000.00. This produces an estimated £43,211.40 left per year after Income Tax and Class 4 NI, before pension savings and any optional Class 2 contributions.
Questions about this calculator
Is revenue the same as a salary?
No. Revenue is money received from clients before business costs. This tool subtracts your allowable expenses to estimate profit, then Income Tax, Class 4 National Insurance and selected student loan repayments. Enter revenue excluding VAT.
Is this a limited-company or umbrella calculator?
No. This tool models sole trading only. It does not calculate corporation tax, dividends, umbrella charges or determine IR35 status. It compares two alternative full-year situations, not employment combined with a side business.
Does a higher result mean I should become self-employed?
Not necessarily. The cash comparison excludes pensions on both sides. Sole traders also need to fund holidays, sick time and periods without work. Employment rights, benefits, business risk and the actual employment-status rules matter alongside the numbers.