Calculate how much tax and National Insurance you save by making salary sacrifice contributions to a pension, cycle to work scheme or EV car scheme.
Based on 2026/27 tax rates. Salary sacrifice reduces your pensionable pay and may affect mortgage affordability, death-in-service benefits, and state pension entitlement. Always check your employment contract and take financial advice for large amounts.
Enter your gross annual salary
Use your headline contractual salary before any current sacrifice.
Add the amount you plan to sacrifice
Enter the gross sacrifice value — pension contribution, EV monthly cost × 12, bike package cost.
Choose the type of sacrifice
Pension, EV, cycle-to-work or workplace nursery — each has slightly different rules and BIK treatment.
See income tax and NI savings
The calculator shows the tax and NI you avoid (28% basic, 42% higher) and the net cost of the benefit.
Check NMW compliance
Post-sacrifice hourly pay must stay at or above £12.21 (NLW). Low earners may need to reduce sacrifice.
Consider knock-on effects
Check mortgage affordability, SMP/SPP and mortgage applications — lenders use post-sacrifice salary as evidence.
Salary sacrifice works differently for a contractor operating through their own limited company than for a standard employee. How employer pension contributions from company profit compare in 2026/27.
The part of the Cycle to Work scheme employers often skip explaining — the 'final value payment' or ownership fee at the end of the hire period, and how it's calculated in 2026/27.
How employer salary sacrifice electric car schemes reduce income tax and National Insurance in 2026/27, why the low Benefit-in-Kind rate is the key to the saving, and who it suits.
Disclaimer: All results are estimates for guidance only and do not constitute financial, tax or legal advice. Always consult a qualified professional.
