What does a business bike really cost? The complete TCO calculation
The cost of a business bike goes beyond the purchase price. Want to make a good investment decision? Then you need to look at the total cost of ownership, or Total Cost of Ownership (TCO). This article tells you what costs to include and how to calculate the true cost of a business bike.
By doing some smart math, you'll discover that a more expensive bike is often more advantageous in the long run. Especially if you include tax benefits and lower maintenance costs. That way you can make an informed choice for your business.
What costs count toward the total cost of ownership?
The cost of a business bike consists of more than just what you pay off at checkout. You have to deal with direct costs such as the purchase price, as well as indirect costs that add up over the years. Putting it all together will give you a real understanding of what that bike is costing you.
Acquisition cost
The purchase price forms the basis of your TCO calculation. With a electric fatbike such as the UrbanX you pay €3,199. For a electric cargo bike such as the CargoX you start from €6,495. Add to that any accessories: a good lock, rain cover, child seats or a GPS tracker.
Don't forget delivery costs, either. And do you choose financing or leasing? Then interest charges or monthly installments will be added. All these costs add up to your initial investment.
Annual maintenance costs
Maintenance is a recurring expense that you need to factor in. On average, you pay €150 to €400 per year for maintenance on an electric bike. This amount depends greatly on the type of drive and how intensively you use the bike.
A bicycle with belt drive has lower maintenance costs than a bike with a chain. The Gates CDX belt that STOER Bikes uses requires no lubrication and lasts 3 to 5 times longer than a traditional chain. That quickly saves €50 to €100 in annual chain maintenance.
Insurance and security
A good business bike insurance policy costs between €100 and €300 per year. The exact premium depends on the value of your bike and the coverage you choose. Make sure theft, damage and breakdown are covered. At STOER Bikes, we offer a specially developed insurance With new value coverage for 3 years.
Also invest in good hardware. An ART-approved lock costs €100 to €200, but it will prevent you from losing your entire bike. This is a one-time expense that you can spread out over the life of the bike.
Battery replacement
The battery of an electric bicycle lasts an average of 3 to 5 years with normal use. Replacement costs between €400 and €800, depending on capacity. The 720Wh batteries in the UrbanX and CityX have a 2-year warranty of at least 80% capacity retention.
Tip: Charge your battery correctly and store it at room temperature. That way, you extend its life considerably and postpone replacement.
Here's how to calculate the TCO of a business bike
You calculate the TCO by adding up all the costs and dividing by the expected lifespan. Below is a real-life example using an electric fatbike for business use:
Example: STOER UrbanX for 6 years of use
Acquisition cost:
- Bike: €3,199
- Accessories (lock, bag, phone holder): €350
- Total purchase: €3,549
Annual cost (6 years):
- Maintenance: €200 x 6 = €1,200
- Insurance: €180 x 6 = €1,080
- Battery replacement (after 4 years): €500
- Total annually: €2,780
Total cost over 6 years: €3,549 + €2,780 = €6,329
TCO per year: €6,329 / 6 = €1,055
TCO per month: €88
This amount is still before tax breaks. These can reduce the actual cost by 20 to 30%.
What tax breaks will lower your costs in 2025?
Business bikes offer substantial tax advantages. By making smart use of these schemes, you significantly reduce your actual costs. Here are the key benefits in 2025:
Addition of only 7%
May your employee also use the bicycle privately? Then an additional charge of 7% applies over the recommended retail price. For a €3,199 bicycle, that's €224 per year. Depending on the tax rate (37.05% or 49.5%), this costs the employee only €7 to €9 per month in additional payroll taxes.
Compare that to a company car. There you quickly pay 22% additional tax or more. A huge difference.
VAT deduction
As a business owner, you may reclaim the VAT on the purchase. Do you also use the bicycle privately? Then you must apply a correction for private use. In the case of a bicycle for commuting, a VAT deduction of up to €130 applies.
Small-scale investment deduction (KIA)
Are you buying a bicycle worth more than €2,900? Then you may be eligible for the KIA. This is an extra deduction on top of the normal depreciation. For an investment of €3,199, this will net you about €265 to €350, depending on your tax rate.
Environmental investment allowance (MIA) for cargo bikes
Are you buying an electric cargo bike or cargobike? Then you may be able to claim 36% MIA on the purchase price in 2025. The CargoX meets the conditions: electrically powered, minimum 75 kg empty weight and equipped with pedal assistance.
Please note that you must register the MIA with RVO within 3 months of purchase. Do not wait too long with this.
Tip from STOER Bikes founder Joeri
"The tax benefits make a business bike much more attractive than people think. If you add it all up, an UrbanX costs your employee less than €10 per month. For a bike that normally costs €3,199. That's almost free cycling."
Want to know more about tax benefits? Then read our extensive blog on tax arrangements for business bicycles.
When is leasing more advantageous than buying?
Bike leasing is becoming increasingly popular. But is it also more advantageous? That depends on your situation. Here are the key considerations:
Advantages of leasing
With leasing, you agree on a fixed monthly amount that often includes everything: maintenance, insurance and sometimes even roadside assistance. You have predictable costs and don't have to make a large investment up front. After the lease period you can upgrade to a newer model.
Lease costs are fully deductible from profits. And the lease bike falls outside the work expense scheme. So you don't have to calculate with the free space.
Benefits of buying
Upon purchase, you become the owner of the bike. You have no mileage limitation and after depreciation you ride virtually for free. You can transfer the bike to the employee for free after 5 years (20% depreciation per year).
Buy for more than €2,900? Then you benefit from the KIA. For electric cargo bikes, the MIA is on top of that. You do not have these benefits with leasing, because then the leasing company applies the deduction.
When do you choose what for?
Leasing is smart if you have limited cash flow, want to upgrade regularly or don't want to worry about maintenance. Buying is more advantageous for long-term use (5+ years), high investment deductions and when you want to put the bike on the balance sheet as a business asset.
Why a more expensive bike is often cheaper
This sounds contradictory, but a more expensive bike can be cheaper in the long run. The reason: lower maintenance costs and longer life.
Take the belt drive. A Gates CDX belt costs more than a traditional chain, but lasts 3-5 times longer. You save on regular chain replacement (€30-50 each time), chain lubricant and labor time at the bike shop.
The same goes for the battery. A larger 720Wh battery withstands more charge cycles than a smaller battery. The lifespan is longer and you need to replace it less often. Over a 6-year period, that quickly saves €400 to €800.
And don't forget the resale value. A quality bike from a well-known brand holds its value better than a cheap alternative. When reselling or transferring to the employee, that makes a difference.
Case study: TCO comparison
Let's compare two scenarios over a 6-year period:
Scenario A: Cheap e-bike of €1,500
- Purchase: €1,500
- Maintenance (6 years): €2,400 (€400/year due to chain drive)
- Insurance: €720
- Battery replacement (2x): €800
- Total: €5,420
Scenario B: STOER UrbanX from €3,199
- Purchase: €3,199
- Maintenance (6 years): €1,200 (€200/year due to belt drive)
- Insurance: €1,080
- Battery replacement (1x): €500
- Total: €5,979
The difference is only €559 over 6 years, or €8 a month. But scenario B gives you a bike with a 2-year warranty, better parts, GPS functionality and a belt drive that doesn't need lubrication. Plus the KIA deduction you don't have with the cheaper bike.
In conclusion
Determine the total cost of ownership of a business bike by looking beyond the purchase price. Include maintenance, insurance, battery replacement and tax benefits in your calculation. That way you make an informed choice.
A good quality bicycle with belt drive and a reliable battery often pays for itself through lower maintenance costs. And with tax breaks in 2025, a business bike is more attractive than ever.
Want to know which bike is best for your situation? Visit contact with our team or schedule a test ride. We would be happy to help you with a customized TCO calculation.