1. What is the Better Off Calculator?

The Better Off Calculator helps you determine whether a new income would leave you financially better off compared to your current income. It calculates the difference between your potential new income and your current income.

2. How Does the Calculator Work?

The calculator uses a simple formula:

Where:

• New Income — Your potential new income in GBP
• Current Income — Your current income in GBP

Explanation: The calculator subtracts your current income from your new income to show the difference. A positive result means you'd be better off, while a negative result means you'd be worse off.

3. Importance of Better Off Calculation

Details: Calculating whether you'd be better off with a new income is crucial for making informed financial decisions, especially when considering job changes, promotions, or other income-altering situations.

4. Using the Calculator

Tips: Enter your current income and potential new income in GBP. The calculator will show you the difference and whether you'd be better or worse off financially.

5. Frequently Asked Questions (FAQ)

Q1: Should I include taxes in my income amounts?
A: For the most accurate comparison, use after-tax income figures. However, you can use gross amounts if you prefer to compare pre-tax situations.

Q2: Does this account for changes in expenses?
A: No, this is a simple income comparison. For a complete picture, you should also consider any changes in expenses associated with the new income.

Q3: What if my income varies month to month?
A: Use average monthly or annual figures that best represent your typical income.

Q4: Should I include benefits in my income?
A: If you're comparing total compensation, include the monetary value of any benefits that would change with the new income.

Q5: How precise should my income figures be?
A: The more precise your input, the more accurate the result. Include pence if you know the exact amounts.