Cycle to Work Savings Calculator
See the real saving from buying a bike through your employer's Cycle to Work scheme, Income Tax and National Insurance relief on the sacrificed salary, the end-of-scheme ownership fee, and any extra saving from replacing car commute miles.
Estimate only. These are estimates based on the figures you enter, actual scheme terms, tax treatment and ownership fees depend on your employer and provider. This is not tax advice; check your own scheme documents or HMRC guidance.
Enter your bike price and tax rate
Your effective price, £ and % saving, and total year-1 benefit appear here as you type.
How Cycle to Work salary sacrifice works
Your employer buys the bike and kit, then you "hire" it by sacrificing part of your gross salary each month, usually over 12 months. Because the sacrifice comes out of pay before Income Tax and National Insurance are calculated, you never pay tax or NI on that portion of your salary, effectively discounting the bike by your marginal tax + NI rate. At the end of the hire period, most schemes let you keep the bike for a small "ownership fee", based on HMRC's fair-market-value guidance (typically 3-7% of the original price for a bike over 12 months old). If you're also replacing car commute miles with cycling, the fuel you're no longer buying is extra savings on top.