Novated Lease Calculator
Calculate your novated lease payments, GST saving, FBT position and true annual saving vs buying a car outright. Uses current ATO benchmark residual values and FBT rates.
Your Details
Running Costs (included in lease)
Salary Breakdown
How your $90,000 gross salary is allocated with a novated lease.
Full Novated Lease Breakdown
Vehicle & Lease
Salary Sacrifice & FBT
Without Novated Lease
With Novated Lease
Next steps with your novated lease
Compare novated lease providers
Rates and fees vary significantly between providers. Compare current offers before you commit.
See the tax saving in full
Our income tax calculator shows your current tax position — and how salary sacrifice reduces your taxable income.
Compare with a standard car loan
See how a novated lease compares against financing the car yourself with a standard car loan.
How Does a Novated Lease Work in Australia?
A novated lease is a three-way agreement between you, your employer and a finance company. Your employer makes lease payments on your behalf from your pre-tax salary, reducing your taxable income and saving you income tax. You also save the GST on the vehicle purchase price — a saving of 1/11th of the driveaway price.
What is FBT and the Employee Contribution Method?
Fringe Benefits Tax (FBT) is a tax your employer pays on non-cash benefits provided to employees. A novated lease is a fringe benefit. The Employee Contribution Method (ECM) involves making a post-tax contribution equal to the taxable value of the vehicle, which reduces the FBT liability to zero. Our calculator uses ECM by default as it is the most common approach.
ATO benchmark residual values
At the end of a novated lease term, a residual payment is due. The ATO sets minimum benchmark residual values based on the lease term — our calculator uses these official figures. For a 3-year lease the residual is 46.88% of the vehicle's ex-GST price. You can pay the residual, refinance it, or sell the vehicle to cover it.
What running costs can be included?
A fully maintained novated lease can include fuel, insurance, registration, servicing and tyres — all paid from your pre-tax salary. This makes the tax saving even more significant as you are effectively paying for all your car running costs before tax.
See current finance rates and fees from Australia's leading novated lease providers.
This calculator uses 2024–25 ATO tax rates and FBT rates. Results are estimates only and do not constitute financial or tax advice. Novated lease arrangements are complex — consult your employer's salary packaging provider and a qualified tax adviser before proceeding.