Novated Lease Calculator

Novated Lease Calculator – Estimate Car Lease Payments

A Novated Lease Calculator is a powerful tool for Australian employees exploring novated leasing, a tax-efficient way to finance a car through salary packaging. By inputting details like gross annual salary, car price, lease term (1–5 years), annual kilometers, and state/territory, it estimates monthly lease payments, tax savings, and running costs (e.g., fuel, insurance, maintenance), helping users compare leasing against traditional car loans or outright purchases.

The calculator estimates payments using the formula: Lease Payment = (Car Price + Running Costs – Residual Value) ÷ Lease Term Months, with tax savings calculated by reducing taxable income via pre-tax deductions (Employee Contribution Method). For example, a $90,000 salary with a $40,000 car on a 4-year lease, driving 15,000 km annually, might yield a weekly cost of $150 and $6,000 yearly tax savings, factoring in GST exemptions and a 28.13% residual value per ATO guidelines. Electric vehicles (EVs) under $91,387 are FBT-exempt if registered post-July 1, 2022, boosting savings.

Benefits include transparency on costs, tax savings estimates, and budgeting for vehicle expenses. Calculators from providers like Maxxia, SG Fleet, or LeasePlan also account for state-specific fees like stamp duty or registration.

For accuracy, verify salary, car price, and running costs (e.g., $2.25/liter fuel, $850 tyre sets). Test scenarios with different terms or EVs for optimal savings. Consult financial advisors for personalized advice, as Reportable Fringe Benefit Amounts may impact government payments. A Novated Lease Calculator simplifies vehicle financing decisions, maximizing tax benefits. Calculate your lease today

A novated lease is a cost-effective way to finance a car in Australia. It’s a three-way agreement between you, your employer, and a leasing company, allowing you to pay for your car and its running costs using your pre-tax salary. This reduces your taxable income, potentially saving you thousands in income tax and GST. Our Australian Novated Lease Calculator helps you estimate these savings instantly.

Whether you’re eyeing an electric vehicle (EV), hybrid, or traditional petrol car, a novated lease can make driving your dream car more affordable. Calculate your savings now and see why more Australians are choosing novated leasing.

How Does a Novated Lease Save You Money?

Novated leasing offers multiple financial benefits, especially for Australian drivers. Here’s how it works:

• Pre-Tax Deductions: Lease payments are deducted from your pre-tax salary, lowering your taxable income.

• GST Savings: Save on GST for the car’s purchase price and running costs, as these are claimable by the leasing company.

• FBT Exemptions for EVs: Eligible electric vehicles and plug-in hybrids (purchased after July 1, 2022, and under $91,387) are exempt from Fringe Benefits Tax (FBT), supercharging your savings.

• Bundled Costs: Running costs like fuel, insurance, and maintenance are included in one predictable payment, avoiding bill shock.

For example, if you earn $80,000 annually and lease an EV worth $60,000, you could save approximately $3,900 in income tax and $1,090 in GST per year, depending on your tax bracket. Use our calculator to see your personalized savings.

Why Choose a Novated Lease for Electric Vehicles?

Electric vehicles are increasingly popular in Australia, and novated leasing makes them even more affordable. Thanks to the Electric Car Discount Bill 2025, eligible EVs are FBT-exempt, meaning you could save tens of thousands over the lease term. Popular EV models like the Tesla Model 3, BYD Atto 3, and MG ZS EV are all compatible with our calculator.

Our EV-specific calculator accounts for lower running costs (e.g., charging vs. fuel) and government incentives, ensuring you get an accurate estimate. Start exploring your EV novated lease options today!