Our calculator automatically calculates all relevant costs and savings for both the employer and the employee. Below, we explain how the different parts fit together—with a concrete example:
Example calculation:
Bicycle price: SEK 20,000 incl. VAT
Marginal tax rate: 50% (The higher the marginal tax rate, the more beneficial it is for the employee)
No service package
No additional employer contributions
Yes to tax reduction (SEK 250/month)
For the company:
Leasing cost: SEK 612.40
Insurance (mandatory): SEK 87.50
Total: SEK 700/month incl. VAT
For the employee:
Taxable benefit value: SEK 234
However, due to the tax reduction of SEK 250/month, the benefit is tax-free and therefore does not need to be reported to the Swedish Tax Agency.
Gross salary deduction: SEK 532.57
This deduction is made from the gross salary (before tax) and covers almost the entire leasing cost. The remaining part is covered by the reduced employer contributions:
→ 532.57 x 31.42% = SEK 167 (in reduced employer contributions)
→ 532.57 + 167 = SEK 700 ⇒ cost-neutral for the employer
The gross salary deduction covers the company's leasing expenses. The reason it is lower than the company's total leasing costs is that we also calculate savings on employer contributions. This is because the company pays less payroll tax when the salary decreases, and to ensure that the company does not make money when the employee takes a benefit bicycle, we add the savings as a contribution toward the leasing cost.
Net cost for the employee:
Calculated based on how much of the gross salary deduction “remains” after tax:
→ 532.57 x (1 – 50%) = SEK 266.28/month
This means that the employee effectively pays SEK 266/month net for a bicycle worth SEK 20,000—including insurance.
Please note: If the bicycle is more expensive and the benefit value exceeds SEK 250, the excess amount becomes taxable and must be included on the payslip. If a more expensive bicycle is chosen and a benefit value applies, the savings on employer contributions are calculated based on the difference between what the company saves through the gross salary deduction and what the company must pay in employer contributions due to the benefit. The net cost also takes into account the tax the employee pays on the benefit. However, the net cost is shown only to provide the employee with an indication of the actual cost of the bicycle.