The short version
- Use payroll's percentage where possible
- Include the ownership payment
- Check minimum-wage eligibility
- Treat the result as an estimate
Cycle to Work savings calculator
Use the tax and National Insurance percentage from your employer or payroll illustration. The calculator shows its method and does not assume a tax band, scheme provider or ownership arrangement.
Method: package value ÷ term gives the gross monthly reduction; package value × saving percentage estimates tax and NI saved; ownership payment is added to estimated net cost. The wage check spreads annual salary and scheme sacrifice across 52 weeks. Confirm pay periods, pension and benefit effects, ownership terms and the current applicable minimum wage with your employer.
Inputs that matter
Enter the complete package value, including eligible accessories. Use the combined Income Tax and employee National Insurance saving illustrated by the employer rather than assuming everyone saves the same percentage.
Include any expected ownership or end-of-hire payment. An extended-use option may postpone transfer and change that figure.
What the estimate leaves out
The calculator does not model changes to pensions, statutory payments, tax credits, benefits, overtime or other calculations linked to contractual pay. It cannot decide whether particular equipment or use qualifies.
Ask payroll and the provider for the formal illustration and agreements. Compare their total net cost with buying the same equipment outright at its real available price.
Compare like with like
A scheme quote may use full retail price while a cash buyer could access a discount. It can also include accessories or ownership arrangements that differ between providers.
Consider retailer availability, returns, warranty support, employment plans and the value of keeping cash available.
Check the current guidance
Rules, schemes and product ranges can change. These live links are the authoritative or independent starting points used for this guide.
