Electric Car Salary Sacrifice Calculator
Calculate your savings on an electric car through salary sacrifice for 2025/26. See your BIK tax (3% of P11D), income tax and NI savings, effective monthly cost, and compare salary sacrifice vs personal lease vs PCP finance. Employer NI savings included.
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How to Use This Calculator
My Savings tab
Enter your annual gross salary, the car’s P11D value (list price including options, VAT, and delivery), the monthly lease cost (all-inclusive: insurance, maintenance, road tax, breakdown), and your tax band. The calculator shows your salary sacrifice amount, BIK tax at 3% of P11D, total tax and NI savings, and your effective monthly cost. The key figure is the monthly saving vs paying for the same car from your net (post-tax) salary.
Full Comparison tab
Compare three ways to get the same electric car: salary sacrifice, personal lease, and PCP finance. Enter the monthly costs for each option, plus insurance and maintenance for the personal lease and PCP routes (salary sacrifice includes these). The calculator shows the total cost over 2, 3, or 4 years for each option, including tax savings, NI savings, and BIK tax.
Employer Benefit tab
For HR and fleet managers: see how much your company saves in employer National Insurance on the sacrificed salary. Enter the average monthly sacrifice per employee and the number of employees on the scheme. The calculator shows per-employee and fleet-wide NI savings, plus the mutual benefit to employer and employee.
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Every input is encoded in the URL. Click Share to send your exact scenario to your partner, employer, or HR department.
The Formula
EV salary sacrifice savings come from three sources: income tax, employee NI, and the ultra-low BIK rate:
BIK Taxable Value = P11D Value × 3% (2025/26 EV rate)
Income Tax Saved = Annual Sacrifice × Tax Rate (20% / 40% / 45%)
Employee NI Saved = Annual Sacrifice × NI Rate (8% up to £50,270 / 2% above)
BIK Tax = (P11D × 3%) × Tax Rate
Effective Monthly Cost = Net Pay Reduction + BIK Tax ÷ 12
Employer NI Saved = Annual Sacrifice × 15%
The key to EV salary sacrifice is the OpRA rules: for ultra-low emission vehicles (0–75 g/km CO2), the benefit in kind is based on the P11D value at just 3%, not on the lease cost. This makes the arrangement extremely favourable compared to other salary sacrifice benefits.
A higher-rate taxpayer with a £40,000 EV on a £450/month salary sacrifice saves approximately £216/month in tax and NI, while paying just £100/month in BIK tax. The effective monthly cost is around £334 rather than £450.
Example
Sarah — Marketing Manager, 34, Manchester
Sarah earns £50,000 and wants a Tesla Model 3 via her employer’s salary sacrifice scheme. She is a higher-rate (40%) taxpayer.
My Savings tab
Sarah gets a brand-new Tesla with insurance, maintenance, road tax, and breakdown cover for an effective £272/month — saving £208/month vs paying the £480 from her net salary. Over 3 years, she saves £7,488.
Full Comparison tab
Employer Benefit tab
Sarah’s employer saves £864/year in NI just from Sarah’s sacrifice. Across a fleet of 20 employees, that’s £51,840 over 3 years — at zero cost to the employer.
FAQ
Pension: If your pension contributions are based on “qualifying earnings” or “basic salary,” they may be calculated on the reduced salary. Check with your employer.
Maternity/paternity pay: Statutory maternity pay (SMP) is based on average weekly earnings in weeks 17–25 of pregnancy. Salary sacrifice reduces this. Many employers have a clause allowing you to opt out before the qualifying period.