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EV SALARY SACRIFICE CALCULATOR

The real cost of electric.

A £500 monthly quote will not usually mean £500 less in your bank account. Compare pay before and after the sacrifice, including the electric car’s taxable benefit.

Fully electric cars only · 2026/27

Use your scheme’s gross sacrifice and the car’s P11D value. The estimate assumes the car is available for a full tax year.

A clearer cost for the car

Turn a quote into take home.

Use your scheme’s full monthly quote.

The taxable list value, not the lease price.

Used for a minimum wage check.

Estimated monthly take home cost

£387less in your pay

From a £500 monthly gross sacrifice.

Current take home / month£2,993
With the car / month£2,607
Annual gross sacrifice−£6,000
Annual cash salary after sacrifice£39,000
Taxable car benefit (4% of P11D)+£1,600
Income Tax caused by car benefit£320
Employee NI saved£480

A full-year, fully electric car estimate. The benefit adds Income Tax; it is not cash pay and does not add employee NI. Your employer must check minimum wage in each pay period.

A worked example

The quote is only the start.

For a £45,000 salary, a £500 monthly gross sacrifice and a £40,000 P11D value, the estimated monthly fall in take home is £387. This example assumes England, Wales or Northern Ireland tax and no student loan.

Gross quote

£500

sacrificed each month

Estimated pay impact

£387

less take home per month

The estimate includes the 2026/27 4% taxable car benefit. Actual payroll treatment and scheme terms can differ.

What changes on your payslip

Two numbers. One decision.

Salary sacrifice changes cash pay. Benefit in Kind adds taxable value back for Income Tax. The calculator keeps those effects separate.

  1. 01

    Reduce cash salary. Annual salary less twelve monthly sacrifices is the pay used for employee National Insurance and student loan deductions.

  2. 02

    Add the taxable car benefit. For a 0 g/km car in 2026/27, we use 4% of the P11D value. The car benefit increases Income Tax but is not extra cash in your pay.

  3. 03

    Check the floor. The reduced cash salary must stay above the relevant minimum wage. We flag an annual-hours shortfall; your employer must check each pay reference period and any other deductions.

Before you sign a scheme quote

Know what is included.

This models a fully electric company car with 0 g/km CO₂, available for the full 2026/27 tax year. Your monthly input should be the total gross sacrifice in the employer’s quote. The P11D input should be the car’s taxable list value, including applicable options.

Charging, insurance, servicing, employer subsidy, pension impacts, other benefits, capital contributions, private-use payments, partial-year availability and early-exit terms are not added separately. A scheme quote may include some of these costs. This is a standard PAYE estimate, not a contract or payroll calculation.

Sources: HMRC car benefit rates, HMRC salary sacrifice guidance, 2026/27 minimum wage rates and student loan payroll guidance.

Compare the alternative

Start with your salary.

See the underlying pay calculation without a car, or explore how pension salary sacrifice affects the same salary.