Novated Lease Calculator Australia
See what a novated lease could really cost your take-home pay โ then compare it with buying the car yourself. Built to explain the numbers, not sell you a lease.
Your pay
Used to estimate the tax effect of salary packaging.
The vehicle
Tell us what you're considering leasing.
Lease
Use your provider's figures where available.
Annual running costs
Enter your annual costs where known. Blank fields use CalcNest estimates automatically; the grey numbers are examples, not entered values. Enter 0 only when a cost is genuinely zero.
View estimate assumptions and methodology
Quick estimate: if finance rate, running costs or admin fees are blank, CalcNest uses illustrative assumptions (8% finance, $4,500/year running for petrol/diesel/hybrid or $3,000/year for electric, and $600/year admin). Enter your own figures under Improve accuracy to replace them. These are not provider quotes. This quick model currently finances the full entered drive-away price; it does not automatically deduct GST credits or separate non-GST on-road costs. Your actual lease quote may differ materially.
Explore cost breakdown, ownership comparison and scenarios
Estimated net ownership cost over the lease term
A neutral same-horizon comparison. Compare the same ownership period using your provider quote and assumptions. Lowest estimated cost is highlighted when all required details are supplied; actual outcomes may differ.
Try another car or lease term
Change a few key assumptions without losing your main calculation.
Ask CalcNest about this result
Ask why the result changed, how FBT or HELP affects it, or which input to change for another scenario.
Upload your novated lease quote
CalcNest can extract the important figures so you don't have to copy every number manually. You'll review the extracted values before anything is used.
PDF, JPG, PNG or WebP ยท maximum 10 MB. Consider redacting unnecessary personal details such as your address, phone number, bank details or signature before uploading. CalcNest does not add the uploaded quote to the WordPress Media Library.
Check the extracted figures
AI extraction can make mistakes. Confirm the values before CalcNest uses them.
How to compare novated lease costs in Australia
A novated lease is an arrangement involving you, your employer and a finance provider. Car finance and selected running expenses can be packaged through payroll, but the tax benefit alone does not tell you if the deal is better than buying with cash or taking a car loan.
CalcNest is a decision tool, not a binding finance quote or a guarantee of tax savings. Finance terms, GST treatment, employer arrangements and end-of-lease costs can change your actual result.
Estimate Mode
Enter your salary, vehicle price, term and known costs. Blank annual running-cost fields use CalcNest's illustrative defaults, not zero. Entering a value of zero explicitly means that category is assumed to cost nothing.
Finance rate, residual payout and resale assumptions should be checked against a real offer.
Quote Mode
Use a provider's annual pre-tax and post-tax deductions, package amount, financed principal, finance residual and GST-inclusive end-of-lease payout. Payroll estimates use entered deductions rather than adding another assumed GST or ECM contribution.
If the quote figures or FBT method cannot be reconciled, the ownership ranking may be withheld.
Understanding the main costs
Take-home pay: Pre-tax deductions can reduce taxable salary. Post-tax contributions reduce net pay. Medicare and HELP repayments may also change. An advertised tax saving should not be confused with your actual reduction in spendable pay.
Running costs: Fuel or electricity, registration, insurance, tyres, servicing and provider fees can add substantially to the total. Vehicle duty, registration and insurance depend on where and how the car is used. Not every charge includes recoverable GST.
End of lease: The finance residual is a balloon figure under the lease; a final vehicle purchase can involve GST. A resale estimate is not guaranteed, and fees may apply when transferring ownership or ending an agreement early.
Worked example: take-home impact versus total ownership cost
An eligible EV package with $15,000 annual pre-tax deductions and $0 post-tax deductions for someone earning $100,000 could reduce annual income tax and Medicare by approximately $4,800 under the simplified 2026โ27 resident model.
Spendable pay would fall by around $10,200 per year, or $392.31 per fortnight. That is not the full cost of owning the car: the end-of-lease payout, any HELP impact, equivalent running costs and resale value must also be considered.
Five checks before accepting a lease quote
- Confirm whether the payroll deductions are weekly, fortnightly, monthly or annual, and distinguish pre-tax from post-tax.
- Check the financed amount, the actual finance rate, running-cost budgets, administration charges and extra fees.
- Ask for both the finance residual excluding GST and the full GST-inclusive payout to purchase the car at lease end.
- Check whether an EV exemption or a non-exempt vehicle's employee contribution method applies to your actual employer arrangement.
- Ask what happens if you change jobs, end early, exceed budgets or decide not to buy the vehicle.
Methodology and sources
The calculator uses Australian resident tax rates for 2026โ27, simplified Medicare and HELP assumptions, ATO residual benchmarks and statutory-method FBT illustrations. Results can differ for part-year arrangements, individual tax circumstances, employer eligibility or contractual terms.
Primary references: ATO car residuals, ATO EV FBT fact sheet, and ATO residual determination, and Treasury consultation on proposed EV FBT changes (proposal only, not included in results). The terms of an actual provider agreement take precedence over illustrative assumptions.
Novated lease calculator FAQs
Is a novated lease cheaper than buying a car outright?
Sometimes, but not automatically. Compare the full take-home pay reduction and residual purchase with the cash price or loan repayments, using the same running costs and ownership period. Cash opportunity cost and future resale uncertainty also matter.
Do electric cars qualify for an FBT exemption?
Eligible battery-electric and hydrogen fuel-cell cars can qualify if all legal conditions are met, including first held and used on or after 1 July 2022 and no luxury car tax payable on the relevant supply or importation. Plug-in hybrids generally stopped qualifying from 1 April 2025, apart from limited transitional arrangements.
Can an exempt electric car affect HELP repayments?
Yes. The car may still give rise to reportable fringe benefits, which are not added to ordinary taxable income but can affect HELP repayment income and other income tests. Your employer's final reported amount may differ from this calculator's simplified estimate.
What are the minimum ATO residual percentages?
The usual benchmarks for cars are 65.63% for one year, 56.25% for two, 46.88% for three, 37.50% for four and 28.13% for five years, calculated on the relevant cost base. These are not necessarily the GST-inclusive purchase payout. A non-standard residual requires appropriate support and provider confirmation.
Can I save GST through a novated lease?
Depending on the arrangement, an eligible employer may claim GST credits on creditable lease charges and certain expenses. Cash employee contributions can create a GST liability. Not all registration, insurance or on-road costs receive identical treatment, and provider quotes may already reflect GST credits.
Why is the net cash ownership cost less than the car price?
The calculator shows the actual upfront cash purchase separately. Net ownership cost includes running costs over the term and subtracts a projected resale value. Resale is hypothetical, not a guaranteed payment, and investment returns foregone by spending cash are not modelled.
What happens at the end of a novated lease?
Depending on the contract, you may purchase the car by paying the residual, refinance, trade it in or arrange a sale. The balloon does not simply disappear when the payroll deductions finish. Confirm the GST-inclusive payout and any transfer or exit fees.
Does my state or postcode affect the cost?
Federal income-tax, HELP and FBT rules are broadly national, but registration, state vehicle duty, compulsory insurance and some concessions differ. This calculator's quick estimate does not yet calculate state-specific on-road charges. Use relevant local or provider figures where possible.
How accurate is this calculator without a real quote?
Estimate Mode is illustrative: finance rates, GST eligibility, provider fees, FBT calculations, insurance and vehicle depreciation may differ substantially. Quote Mode is more useful when you can provide verified payroll figures, the finance residual and the actual final purchase payout.
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