Tools · Pay Cut
Can you afford the pay cut?
A lower-paying job can be the right move — for your health, your growth, or your exit plan. This shows the real size of the cut and whether your budget still works after it.
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Uses take-home (after-tax) figures you enter — a real comparison also weighs benefits, pension and growth. Education, not financial advice.
Frequently asked questions
How do I calculate a pay cut percentage?
Subtract new pay from current pay, divide by current pay, ×100. A drop from $5,000 to $4,000 a month is a $1,000 cut — a 20% pay cut.
Can I afford a pay cut?
You can if your new take-home still covers essential expenses with a margin. Enter your numbers above to see your new monthly surplus or deficit and whether savings still grow.
Is a pay cut for a better job worth it?
Often yes — if the role improves your health, growth or progress toward a bigger goal. The key test is whether the lower pay still leaves you saving, or at least breaking even, rather than draining savings.
How much income do I give up with a pay cut?
Multiply the monthly cut by 12 for the yearly figure — but weigh it against what you gain. A modest cut that prevents a burnout-driven quit can be cheaper than an unplanned exit later.