Cycle to Work Scheme Calculator

How the Cycle to Work Scheme Works

The Cycle to Work Scheme in the UK helps employees save money when purchasing a bike for their commute. Instead of paying upfront, the cost is spread across monthly salary deductions — known as salary sacrifice. These deductions are taken before Income Tax and National Insurance are applied, meaning you pay less tax. This creates substantial savings — usually between 32% to 47%, depending on your tax band.

During the hire period, the bike technically belongs to the employer or scheme provider. At the end of the contract, ownership may be transferred for a small fee. Cycling to work helps reduce pollution, cut fuel and parking costs, and improve personal health. This calculator estimates your expected monthly payments, total savings, and the final net cost to you.

Savings may vary slightly based on employer arrangements or provider admin fees, but this calculator gives a very accurate representation for most users in the UK.