Novated lease calculator

Get an estimate of your novated lease savings. It’s 100% free, with no obligations.

How is a novated lease calculated?

A novated lease calculator estimates your costs and savings based on different factors specific to you, the car you want to salary sacrifice and how you will drive it. The lease term (duration) will also impact the calculation.

Here’s an overview of the main variables and how they can impact the calculation.

What car you’ll be leasing

The purchase price of your car will have a significant bearing on the calculation and the cost of your lease. A more expensive car within the same category will mean a higher regular lease payment. The major exception is a novated lease on an electric vehicle, which is typically significantly cheaper than a lease for a similarly-priced non-EV. This is due to the fringe benefits tax exemption on eligible EVs.

How many KMs you drive

If you choose a fully-maintained novated lease, the calculation will factor in your car running costs too. These are estimated based on how many KMs you’ll drive per year. Car running costs you can salary sacrifice include fuel/charging, insurance, registration/CTP, tyres and servicing.

Your salary

A novated lease calculator will take account of your pre-tax salary to estimate your potential tax savings. Generally speaking the higher your marginal rate of tax, the more you save. But anyone who pays income tax can reduce their tax bill through a novated lease.

The lease duration

Your choice of term (between 1-5 years) has a major impact on the novated lease calculation. A longer lease term generally means lower regular payments as the cost is spread over a longer period. The residual value of the novated lease is also lower with a longer lease.

Personal versus business use

When calculating your lease, we’ll factor in how much you’ll use your car for business purposes. Business use of your vehicle does not attract fringe benefits tax and this can lower your lease cost.

The cost of your insurance and other related costs

An accurate novated lease calculation will factor in how much you’ll be paying for costs like insurance and fuel/charging. These can vary based on how much you drive your car but also your choice of supplier. We’ll always do what we can to save you money on these costs.

Your location in Australia

This impacts the likes of vehicle delivery costs, stamp duty on the vehicle and the cost of registration, all of which will need to be factored into the novated lease calculation. Where you live may also impact what EV incentives and rebates you may be eligible for if you choose to drive an EV.

Finance costs

The interest rate on your novated lease and any admin costs will also impact the calculation and will be factored into the estimate you receive.

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What will my novated lease calculator results show?

The result you get from a novated lease calculator will estimate various costs and savings. Here are the main ones you’ll be shown:

  • Up-front GST saving on the car
  • Regular cost of the lease (reduction to your take-home pay each week/fortnight/month)
  • The pre-tax deduction from your salary
  • The post-tax deduction 
  • How much the car running cost are with a breakdown of what’s included
  • Tax savings, both the regular amount and the total over the life of the lease
  • The residual payment on the lease
  • A full breakdown of the calculation with and without a novated lease so you can compare

How accurate is a novated lease calculator?

A novated lease calculator will give you a good idea of what salary sacrificing your car could mean for your take-home pay and what you could save. It can be helpful, for example, if you’re comparing a novated lease to a car loan, or even buying a car outright with cash

But remember, it’s only an estimate. 

The calculation will rely on assumptions that may be different to your situation. For example, your application will eventually be subject to a credit check which will determine what interest rate you pay on your lease.

Ultimately, the best way to calculate your novated lease is to get a personalised quote. Our team is experienced at asking the right questions to make sure the quote you get back is as accurate as possible and true to what you will actually be paying. 

They may even be able to recommend additional cost-saving opportunities based on your specific situation that a novated calculator won’t be able to reflect.

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Novated lease guides

Need more information? Read our easy-to-understand novated lease guides.

Novated Lease Australia
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ABN: 69 659 639 004

ACN: 659 639 004

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