You've done the maths. Now get the insights.
Based on a £85,000 salary and £59,858 take-home, here's what most people miss
Based on a £85,000 salary and £59,858 take-home, here's what most people miss
Get My Insights →Investment Banker Pay UK 2025/26
Investment banking in London is one of the highest-paying graduate careers in the UK, but all-in compensation (base plus cash bonus) is where the real money lies: Analyst total compensation at a bulge-bracket bank reached £85,000–£110,000 in 2024, rising to £180,000–£280,000 at Associate level. Most investment banking roles are concentrated in the City of London, accounting for approximately 70% of UK IB headcount. The hours are notoriously demanding at 70–100 per week in M&A and ECM, with rapid pay progression for those who remain through the analyst years.
Based on typical investment banker salaries, here is what you can expect to take home after income tax and National Insurance:
- Analyst (1st–3rd year): £42,458 take-home (£55,000 gross, outside London) / £54,058 take-home (£75,000 gross, London)
- Associate (post-MBA or promoted): £59,858 take-home (£85,000 gross, outside London) / £72,358 take-home (£110,000 gross, London)
- Vice President: £76,158 take-home (£120,000 gross, outside London) / £96,587 take-home (£160,000 gross, London)
Key facts about investment banker pay:
- 2024/25 first-year Analyst base at Goldman Sachs and JPMorgan in London: £75,000; year-end bonus adds £30,000–£50,000
- All-in Associate total compensation at a bulge-bracket bank: £180,000–£280,000 in London
- Bonuses are deferred over 3–5 years at Director and MD level with a portion paid in bank equity
- Boutique advisory firms (Lazard, Rothschild, Evercore) pay comparable or slightly lower base but can match bonus at deal-intensive teams
- Most IB Analysts exit to private equity or corporate development roles after 2–3 years
- Employer pension contributions at most banks are typically 5–7%, well below NHS or public sector defined benefit schemes
Your taxes (2025/26)
| Year | Month | Week | |
|---|---|---|---|
| Gross Income | £37,500 | £3,125 | £721 |
| Pension Contributions£375 Saved! | £1,875 | £156 | £36 |
| Employer Pension ContributionsPot Increased | £1,125 | £94 | £22 |
| Taxable Income | £35,625 | £2,969 | £685 |
| Personal allowance | £12,570 | - | - |
| National Insurance | £1,843 | £154 | £35 |
| Income Tax | £4,611 | £384 | £89 |
| Take Home Pay | £29,171 | £2,431 | £561 |
| Added to Pension | £3,000 | £250 | £58 |
| Opportunities Found | View My Opportunities → | ||
Investment Banker Salary Breakdown UK 2025/26
The table below shows typical investment banker salaries across experience levels and regions, alongside estimated take-home pay after income tax and National Insurance. Click any salary figure to open it in the calculator.
How Investment Banker Pay Works in the UK
- 2024/25 first-year Analyst base at Goldman Sachs and JPMorgan in London: £75,000; year-end bonus adds £30,000–£50,000
- All-in Associate total compensation at a bulge-bracket bank: £180,000–£280,000 in London
- Bonuses are deferred over 3–5 years at Director and MD level with a portion paid in bank equity
- Boutique advisory firms (Lazard, Rothschild, Evercore) pay comparable or slightly lower base but can match bonus at deal-intensive teams
- Most IB Analysts exit to private equity or corporate development roles after 2–3 years
- Employer pension contributions at most banks are typically 5–7%, well below NHS or public sector defined benefit schemes
Income Tax and National Insurance in 2025/26
Like all UK workers, investment bankers salaries are subject to income tax and National Insurance (NI) contributions. In the 2025/26 tax year:
- Up to £12,570: 0% (Personal Allowance)
- £12,571 to £50,270: 20% (Basic Rate)
- £50,271 to £125,140: 40% (Higher Rate)
- Above £125,140: 45% (Additional Rate)
Employee National Insurance contributions for 2025/26:
- 8% on earnings between £12,570 and £50,270
- 2% on earnings above £50,270
Use the calculator above to see your exact take-home pay after all deductions, including pension contributions and student loan repayments if applicable.
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Explore Your Finances
Model your expenses, project your wealth, and find your path to financial independence.
Your Monthly Outgoings
Projected Pension
Wealth & Financial Independence More Info
- In today's money, you'll have at least £21,600 / year (£1,800 / month) when you retire at 66 - just from your savings
- In real terms (where inflation is not removed), that's £38,340 / year (£3,195 / month)
- That means all your outgoings are covered without having to make any further contributions!
- All your expenses are covered for your retirement, but your wealth may start to decrease towards old age
Projected Wealth
- FI Target = Annual outgoings (£21,600) * Years needed for 4.00% SWR (25.00) = £540,000
- Invested annual pension = £3,000
- Invested annual surplus = £2,171
- Inflation of 2.5% / year
- Assumes New State Pension, payments increasing with inflation (2.5% / year)
- Assumes student loans last 30 years max
- Assumes a flex-drawdown pension for illustration purposes
- Assumes you draw down pension up to the higher rate bracket (£50,270), then draw down your S&S ISA
- Pension lump sums are not included