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Salary Sacrifice Electric Car Calculator

Salary sacrifice EV leasing can significantly reduce your monthly outlay compared to paying from net salary. Use the running cost calculator below to see the fuel-cost side of the equation, alongside the salary sacrifice guide for the lease-cost side.

The savings work in two layers: (1) the lease cost is lower because you pay from gross salary before tax, and (2) the running cost is lower because electricity costs less per mile than petrol. Both savings stack together.

Calculator mode

Your driving details

Used for local fuel price lookup. Calculations still work without it.

miles/yr
MPG

Official combined MPG for your petrol car

p/litre

UK average: ~153.5p/l. Adjust to your local price.

p/kWh

Check your energy bill — typically 24–32p/kWh on standard tariff

p/kWh

Typically 50–80p/kWh on rapid chargers

miles/kWh

Typical EVs: 2.5–4.5 mi/kWh. Default: 3.5

80% home / 20% public

Home charging is significantly cheaper — adjust this to reflect your situation

£

The extra upfront cost of buying an EV vs an equivalent petrol car. Set to 0 to skip break-even.

Results are estimates. Not financial advice.

Fill in your details

Enter your annual mileage, current car MPG, and charging assumptions. Click Calculate my true cost to see your personalised EV vs petrol comparison.

  • Cost per mile comparison
  • Annual and 5-year savings
  • Break-even point
  • 10-year cumulative cost chart

Reference prices

Avg.

Fuel

Petrol153.5p/l
Diesel168.6p/l

Electricity

Home26.1p/kWh
Public79p/kWh

UK national averages. Enter postcode for local prices. Why this matters →

Typical salary sacrifice savings by tax band

Basic rate (20%)

~20%

saved on lease cost

~£100/mo on £500 lease

Higher rate (40%)

~40%

saved on lease cost

~£200/mo on £500 lease

Additional rate (45%)

~45%

saved on lease cost

~£225/mo on £500 lease

Savings are approximate and assume Income Tax + Employee NI + Employer NI are avoided on the sacrificed salary. Actual savings depend on your specific scheme provider, bundled services, and employer NI pass-through.

How the two savings stack together

Example: Higher-rate taxpayer, 10,000 miles/year, 80% home charging

Personal lease (after-tax cost)£500/mo

Salary sacrifice (before-tax saving)−£200/mo

Petrol fuel cost (45 MPG, 10k mi/yr)£129/mo

EV charging cost (80% home, 3.5 mi/kWh)−£49/mo

Total monthly benefit~£280/mo saved

Based on £500/mo lease, £500/mo gross salary sacrifice, 40% tax + 2% NI + 13.8% employer NI. Petrol at 153.5p/litre. EV at 26.1p/kWh home / 79p/kWh public. Running costs are approximate.

Use the calculator for the running-cost side

The calculator above shows the fuel-cost difference between an EV and a petrol or diesel car. For salary sacrifice decision-making:

  • 1.Get a salary sacrifice quote from your employer for the EV you're considering.
  • 2.Compare it to a personal lease or PCP quote for the same car.
  • 3.Use the calculator above to work out the running-cost saving (EV vs the petrol car you currently drive).
  • 4.Add the lease saving and the fuel saving together for your total monthly benefit.

For a detailed explanation of how salary sacrifice works in the UK, including eligibility, BIK considerations, and employer rules, see our full EV salary sacrifice UK guide.

Frequently asked questions

How much can I save with an EV salary sacrifice scheme?

The saving varies by tax band, lease cost, and employer arrangement. A higher-rate (40%) taxpayer leasing a £500/month EV through salary sacrifice saves roughly £200/month in Income Tax and National Insurance compared to paying from net salary. Combined with lower fuel costs, the total monthly saving can be £300–£400.

How does salary sacrifice compare to a personal EV lease?

Salary sacrifice almost always beats a personal lease on monthly cost for the same car because you pay from gross salary before tax. The difference is most significant for higher-rate taxpayers. However, salary sacrifice schemes bundle insurance, maintenance, and breakdown cover — so the comparison should include those costs.

What happens to running costs on a salary sacrifice EV?

Running costs (electricity) are nearly always separate from the salary sacrifice payment. You still pay for charging separately, which means the running cost savings of an EV stack on top of the lease savings. A driver saving £200/month on the lease via salary sacrifice can also save £50–£80/month on fuel with home charging.

Is salary sacrifice worth it if I can't charge at home?

It can still be worth it if your employer offers workplace charging or if you have reliable access to public charging. The lease saving from salary sacrifice is independent of your charging situation. However, the total value is lower if you're paying public charging rates — make sure to factor this into your decision.

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