EV Salary Sacrifice Calculator
Compare the cost of an electric car versus a petrol car with our salary sacrifice calculator. Find out how much you could save each month by going electric through your employer.
I’m an Employer
Learn more about an electric car salary sacrifice scheme.
I’m an Employee
See how much you can save on 200+ models using The Electric Car Scheme
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How We Calculate These Savings
Our EV salary sacrifice calculator provides transparent, accurate estimates based on real UK tax rates and market data. As the UK's first B Corp certified electric vehicle salary sacrifice scheme serving 1,000+ companies, we've refined our methodology to give you precise savings projections.
Our Calculation Methodology
Tax Savings Formula
We calculate your monthly savings by comparing the cost of salary sacrifice versus personal car ownership. The savings come from three key sources:
Income Tax Savings – Your electric car payment comes from gross salary (before tax), meaning you don't pay income tax on the sacrificed amount. Basic rate taxpayers save 20%, higher rate taxpayers save 40%, and additional rate taxpayers save 45%.
National Insurance Savings – You also save 12% (basic rate) or 2% (higher rate) on National Insurance contributions on the sacrificed amount.
Benefit-in-Kind (BiK) Tax – Electric vehicles are taxed at just 3% for 2025/26 (locked until 2028), compared to up to 37% for high-emission petrol or diesel vehicles. This minimal BiK rate makes EVs significantly more tax-efficient.
Example: If your monthly EV payment is £500 as a 40% taxpayer, you'd normally need to earn £833 pre-tax to have £500 after tax. With salary sacrifice, you only sacrifice £500 from your gross salary, immediately saving £333 per month.
Want a personalised calculation based on your exact circumstances, tax bracket, and chosen vehicle?
Why Choose The Electric Car Scheme?
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Best prices available
You’ll access top leasing companies for the best prices, with everything bundled into a simple, all-inclusive, cost-effective package.
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No cost
Net Zero choices should be affordable for all. There is no net cost to your business to run the scheme.
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Straightforward reporting
Simple to use reporting to make life easy for HR and Finance teams.
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Trusted 5 star service
Serving thousands of customers and rated “Excellent – 5 stars” on Trustpilot, you can rest assured that you are in good hands.
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Complete Employer Protection
We provide market-leading protection from day 1, to safeguard you from unexpected costs if your electric car needs to be returned early.
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The Cheapest Way To Charge
Employees can now salary sacrifice their EV charging and save 20-50% on the go, at home or at work!
Latest Articles From Our Blog
Our blog offers detailed insights into the Electric Car Scheme, discussing its advantages, hurdles, and the future of achieving Net Zero emissions. We explore various topics, from the mechanics of electric cars to the range of models out there. Whether you're a veteran electric car enthusiast or a newcomer intrigued by this innovative tech, our blog is your go-to source for all things electric cars.
Calculate Your Savings
If your company is already part of our salary sacrifice scheme, please click below to receive a quote. If your company hasn't joined yet, click the other button to encourage them to become a part of the scheme.
Frequently Asked Questions
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Salary sacrifice (also called salary exchange) is an arrangement where you give up part of your pre-tax salary in exchange for an electric car. Because the deduction happens before tax and National Insurance, you pay less on both – typically saving 20-50% compared to leasing personally.
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Savings vary based on your tax bracket, but most employees save 20-50% compared to a personal lease. Basic rate taxpayers (20%) typically save 20-30%, while higher rate taxpayers (40%) can save 40-50%. These savings come from reduced Income Tax, National Insurance, and low 3% Benefit-in-Kind rates for electric vehicles.
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It can, depending on how your pension is calculated. If your pension contributions are based on your reduced salary (after sacrifice), they may be lower. However, many employers calculate pensions on your pre-sacrifice salary. Check with your HR department to understand how your specific pension scheme works.
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Salary sacrifice reduces your gross salary, which lenders use to assess mortgage applications. Some lenders may consider your pre-sacrifice salary if you explain the arrangement, but it's worth discussing with a mortgage advisor before entering a salary sacrifice scheme if you're planning to apply for a mortgage soon.
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Item If you leave your employer during the lease term, you'll typically need to either: return the car and settle any early termination fees, continue payments if your new employer offers the same scheme, or arrange to take over the lease personally. Specific terms depend on your contract and provider.
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Yes – your salary after the sacrifice cannot fall below the National Minimum Wage. Your employer must ensure the deduction doesn't take you below this threshold. For 2025/26, this means careful calculation for those earning closer to minimum wage.
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Most EV salary sacrifice schemes include: the vehicle lease, fully comprehensive insurance, road tax, servicing and maintenance, breakdown cover, and tyre replacement. Some schemes also include home charging installation. Everything is bundled into one monthly payment from your pre-tax salary.
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Typical lease terms are 2-4 years (24-48 months). You'll agree to the term at the start, and at the end you can return the car, extend the lease, or sometimes purchase the vehicle depending on your provider's terms.
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Electric vehicles have significantly lower BiK rates than petrol or diesel cars. For 2025/26, EVs are taxed at just 3% of their list price, compared to up to 37% for high-emission vehicles. This low rate is locked in until 2028, making EVs particularly attractive for salary sacrifice.
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This depends on your employer's scheme and provider. Most schemes offer a wide range of electric vehicles from popular manufacturers, but there may be restrictions on maximum value or specific models. Check with your employer's scheme provider for their available vehicle list.
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No – the car is owned by the leasing company and provided to you by your employer as part of your benefits package. You use it for the duration of the lease term but don't own it. At the end of the lease, you typically return it or have options to extend or purchase depending on the agreement.