The London-listed aerospace giant, which is based in Derby in central England, showed off the plans at the Farnborough Airshow for the first time, as other players also rush into the market segment.
The Rolls-Royce EVTOL plane will seat four or five people, with a flying range of 500 miles (805 kilometres) and a top speed of 200 miles per hour.
"In this market, you will see something like this flying within three to five years, and we will demonstrate the system in two years," said Rob Watson, head of Rolls-Royce's electrical team.
"At the end of next year we will be flight ready," he said at the group's Farnborough chalet.
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