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Personal Savings Allowance Calculator UK 2026/27

Enter your savings balance, expected interest rate, and tax band. This calculator tells you how much interest you'd earn, how much falls inside your Personal Savings Allowance (PSA), and how much tax you'd owe on the rest.

PF
Pennywise Finance Editorial
UK personal finance team. Calculator formulas based on published HMRC rules for the 2026/27 tax year.
Fact-checked
Reviewed August 2026

Runs entirely in your browser — your numbers are never sent to a server.

Your numbers

£
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Uses 2026/27 UK PSA thresholds: £1,000 (basic), £500 (higher), £0 (additional), £5,000 starting-rate band for very low earners.

Your result

Gross interest earned£960.00
Personal Savings Allowance£1,000.00
Taxable interest£0.00
Tax owed on interest£0.00
Net interest after tax£960.00

How the calculation works

  1. Gross interest = balance × interest rate.
  2. Your Personal Savings Allowance is set by your income tax band: £1,000 (basic), £500 (higher), £0 (additional).
  3. Interest below PSA is tax-free.
  4. Interest above PSA is taxed at your marginal income tax rate — 20% (basic), 40% (higher), 45% (additional).
  5. If your income is very low (below £17,570 total from all sources), you may also get the starting rate for savings — up to £5,000 of savings interest tax-free.

Why this matters

The Personal Savings Allowance is one of the most misunderstood UK tax rules. Above about £20,000 in savings at a 5% rate, higher-rate taxpayers start losing meaningful money to tax that could stay theirs inside a Cash ISA.

Rules of thumb:

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This is a general estimate, not personalised tax advice. Actual tax depends on your total income and other allowances. For decisions involving significant sums, consult a tax adviser or the free MoneyHelper service.