Cycle to Work Calculator
Estimate your income tax and National Insurance savings on a new bike and accessories through salary sacrifice, plus your monthly cost and effective final price.
Calculate Your Bike Scheme Savings
Enter the cost of the bike and accessories, your tax band, and the hire period to see your monthly salary sacrifice, total savings, and effective cost.
Scheme Details
Enter the package cost and your tax situation
Savings Summary
Estimated tax savings and monthly cost
Typical Savings by Tax Band
Approximate combined tax and standard-rate National Insurance savings on a £1,000 package, by income tax band.
| Tax Band | Combined Saving | Saved on £1,000 | Effective Cost |
|---|---|---|---|
| Basic Rate (20%) | 28% | £280 | £720 |
| Higher Rate (40%) | 42% | £420 | £580 |
| Additional Rate (45%) | 47% | £470 | £530 |
Cycle to Work FAQ
Everything you need to know about salary sacrifice bike schemes and how the savings work.
The cost of the bike and any accessories is deducted from your gross salary before income tax and National Insurance are calculated, a process known as salary sacrifice. This lowers your taxable income, so you effectively pay for the bike using money that would otherwise have gone to tax and National Insurance.
Savings typically range from around 28% to 47% of the bike’s cost, depending on your income tax band and National Insurance rate. Higher rate and additional rate taxpayers generally save a larger percentage than basic rate taxpayers.
At the end of the standard hire period, usually 12 months, many employers offer the option to own the bike outright for a small final ownership fee, extend the hire period, or return the bike. This fee is separate from the monthly salary sacrifice payments.
There is no statutory upper limit set by HMRC, but many employers set their own spending cap, often based on what their scheme provider or credit arrangement allows. Check with your employer or scheme provider for the exact limit that applies to you.