Novated Lease Calculator
A novated lease is a popular car financing arrangement in Australia that allows employees to lease a vehicle using pre-tax salary, often resulting in significant tax savings and simplified budgeting. With a novated lease, your employer makes the lease payments on your behalf, and you benefit from a single monthly payment that covers not only the car but also running costs such as fuel, tyres, insurance, servicing, and registration. At the end of the lease, you have the option to pay the residual value (a pre-set amount based on the original price and lease term) to own the car, or return it and start a new lease.
This calculator helps you estimate the key financial aspects of a novated lease, including your monthly payments, annual running costs, potential tax savings, and the residual value at the end of the lease term. By entering your salary, car price, lease details, and running cost estimates, you can quickly see how a novated lease could fit your budget and compare it with other car financing options.