How much do I save with a company bike?

Savings depend on your salary, tax class, and bike price. Typically you save 15-40% compared to a private purchase. For an e-bike at €3,000 RRP with a €3,500 gross salary in tax class I, effective monthly costs are around €55-70 instead of the full lease rate of approx. €109. Over 36 months, this means savings of several hundred euros compared to the retail price.

What is the benefit-in-kind for company bikes?

Since 2020, the benefit-in-kind for bicycles and e-bikes (pedelecs up to 25 km/h) through salary sacrifice is only 0.25% of the RRP per month. For a €3,000 bike, that's €7.50 monthly that must be taxed additionally. S-pedelecs (over 25 km/h) are treated like company cars with the 1% rule. If the bike is provided on top of salary (no salary sacrifice), the benefit-in-kind for regular bikes and e-bikes is zero.

What happens when the lease ends?

After the lease term (usually 36 months), you have three options: 1) Buy the bike at residual value (typically 18% of RRP, e.g. €540 for a €3,000 bike). 2) Extend the lease at reduced terms. 3) Return the bike. Most users choose to buy, as the residual value is well below the actual market value.

Is a company bike worth it on a low salary?

Yes, you can still save even on a lower salary, though the tax savings are smaller. From around €2,000 gross salary, company bike leasing is usually worthwhile. Note however that salary sacrifice reduces your social-insurance-liable income, which can have a minor long-term impact on pension and sick pay entitlements.

What is the difference between E-Bike and S-Pedelec for company bikes?

E-bikes (pedelecs) assist up to 25 km/h and are classified as bicycles – no license, no mandatory insurance, and only 0.25% benefit-in-kind. S-pedelecs assist up to 45 km/h and are classified as mopeds – requiring a license plate, insurance, and 1% benefit-in-kind (like a company car). From a tax perspective, e-bikes are significantly cheaper.

Can I use the company bike privately?

Yes, private use is explicitly allowed and encouraged. This is one of the major advantages over traditional company car arrangements. You can use the company bike for commuting, shopping, sports, and leisure – without additional costs or restrictions.

Does salary sacrifice affect my pension?

Yes, salary sacrifice reduces your gross income subject to social insurance. This means you pay less into the pension system, which can affect your future pension entitlements. However, with a lease rate of €100 monthly over 36 months, the impact on your eventual pension is minimal (a few euros less per month). The immediate savings far outweigh this in most cases.

What does the company bike cost the employer?

With pure salary sacrifice (no employer subsidy), the company bike costs the employer nothing – they actually save money, as they don't pay social insurance contributions on the converted amount (about 20% of the conversion amount). The employer only has the administrative effort for the framework agreement with the leasing provider. A voluntary employer subsidy is an attractive benefit that is tax-deductible as a business expense.

Can I claim commute allowance despite having a company bike?

Yes! The commute allowance (€0.30 per km for the first 20 km, €0.38 from the 21st km) can be claimed regardless of whether you use a company bike. This applies to all means of transport. So in addition to savings from salary sacrifice, you can deduct the commuter allowance in your tax return.

How does insurance work with a company bike?

Most leasing providers (JobRad, BusinessBike, Lease-a-Bike, etc.) offer all-inclusive packages that include theft insurance, comprehensive coverage, pick-up service, and wear-and-tear repairs. Costs are typically €5-15 per month depending on the bike value and coverage scope. These costs are usually included in the monthly lease rate.

E-Bike as Company Bike: Is It Worth More Than a Regular Bicycle? | Company Bike Calculator

E-Bike or Bicycle as a Company Bike?

The choice between an e-bike and a conventional bicycle as a company bike depends on several factors: commute distance, terrain, personal fitness, and of course budget. From a tax perspective, there is hardly any difference — the benefit-in-kind is 0.25% of the RRP in both cases with salary sacrifice. Nevertheless, there are important differences.

Tax Treatment Comparison

Bicycle as Company Bike

A conventional bicycle as a company bike is subject to the same tax rules as an e-bike: 0.25% benefit-in-kind with salary sacrifice, 0% if employer-funded. The difference: bicycles typically have a lower RRP, which means smaller absolute tax savings — but also a lower monthly burden.

E-Bike (Pedelec) as Company Bike

E-bikes with assistance up to 25 km/h are classified as bicycles for tax purposes. The higher RRP (typically EUR 2,500-5,000) means a higher lease rate but also proportionally higher tax and social insurance savings. With a EUR 4,000 e-bike, you easily save EUR 800-1,200 over 36 months compared to the retail price.

S-Pedelec: Special Case

S-pedelecs (assistance up to 45 km/h) are not classified as bicycles but as mopeds. The benefit-in-kind is 1% of the RRP per month — like a company car. That is four times as much as for a regular e-bike. Additionally, you need an insurance plate and at least a moped license.

Everyday Use: E-Bike vs. Bicycle

Commute Distance

For distances up to 5 km, a regular bicycle is perfectly adequate and even faster, since you don't wait for motor support. From 10 km commute distance, the e-bike offers real advantages: less sweat, shorter travel time, and higher motivation to ride even in wind and hills.

Terrain

If you live in a hilly area (e.g., Stuttgart, Black Forest), an e-bike is almost indispensable for commuting. In flat regions (e.g., northern Germany), a good trekking bike may suffice.

Fitness

A common argument against e-bikes: 'I want exercise.' Reality shows: e-bike riders average more kilometers and ride more frequently. The assistance lowers the barrier to choosing the bike. And anyone who wants to can reduce or switch off the assistance at any time.

Cost Comparison

Example: Bicycle EUR 1,500 vs. E-Bike EUR 3,500

At tax class I and EUR 3,500 gross over 36 months: The bicycle costs effectively about EUR 1,000-1,100 (including buyout), the retail price would be EUR 1,500. The e-bike costs effectively about EUR 2,300-2,500 (including buyout), the retail price would be EUR 3,500. The absolute savings are higher for the e-bike (about EUR 1,000-1,200 vs. EUR 400-500), while the percentage savings are similar (about 30-35%).

Who Should Choose What?

**Bicycle recommended for:** short distances under 5 km, flat terrain, sporting ambitions, budget under EUR 2,000.

**E-bike recommended for:** commute distances over 5 km, hilly terrain, desire for comfort and reliability, budget over EUR 2,500.

**S-pedelec advisable for:** commute distances over 15 km on bike paths or country roads (S-pedelecs may not be used on all bike paths). Less tax-efficient than e-bikes.

Maintenance and Running Costs Compared

An often overlooked factor is ongoing costs. A conventional bicycle has low maintenance costs: tires, chain, and brakes cost about EUR 50-100 per year. An e-bike additionally requires battery care and occasional software updates. Electricity costs for the battery are minimal (about EUR 5-10 per year with daily charging). After 3-5 years, a battery replacement may be needed (EUR 400-800), which is covered by many lease insurance packages.

Environmental Impact: Both Options Are Green

Both bicycle and e-bike are extremely climate-friendly compared to cars. An e-bike consumes about 1 kWh per 100 km — costing about 30 cents and producing under 10 g CO2/km (with the German electricity mix). A car averages 150 g/km. Switching from car to bike saves about 95% of emissions — regardless of whether it has a motor or not.

Finding the Right Bike at the Dealer

Take time for thorough consultation at the bike dealer. A test ride is particularly important for e-bikes: motor position (mid-drive vs. hub motor), battery capacity (400-750 Wh), frame size, and gearing make a big difference in the riding experience. Many dealers also offer cargo bikes as company bikes — ideal for families or transporting work materials.

Special Case: Cargo Bikes as Company Bikes

Cargo bikes are growing in popularity — especially for parents dropping children at daycare or self-employed individuals transporting goods. With RRPs of EUR 3,000-8,000, they are ideal for salary sacrifice: the high tax savings make the initially substantial price much more affordable. Tax-wise, cargo bikes (including e-cargo bikes) are treated the same as regular bicycles — 0.25% benefit-in-kind with salary sacrifice. Some cities and federal states offer additional purchase premiums for cargo bikes that can sometimes be combined with company bike leasing.

Conclusion

For most company bike users, an e-bike is the best choice: higher tax savings, greater everyday utility, and a lower motivation threshold. Those with short commutes and good fitness ride cheaper on a conventional bicycle. S-pedelecs only pay off for long-distance commuters. Cargo bikes are ideal for families and tradespeople. Our calculator shows you the exact comparison for your situation — simply enter the desired bike type and price.