Novated Lease Calculator
Compare the total cost of a novated lease with a cash or loan purchase, including the take-home pay impact and residual payout.
Use the pre-tax and post-tax deductions from your provider. Example amounts are illustrative. Includes the residual so both paths finish with the car owned outright.
How this tool works
Reviewed 22 September 2026. 2026–27 resident income-tax estimate; quoted lease terms.
Calculation outline
- Annualise the monthly deductions. Compare estimated resident tax before and after pre-tax salary sacrifice, including LITO and the modelled Medicare levy.
- Subtract this tax saving from total deductions, add unpackaged costs and your income-test adjustment, then multiply by the term and add upfront costs and the GST-inclusive residual.
- Compare with the drive-away cash price or a fully amortising monthly loan over the same term, plus annual running costs. Both paths end with ownership of the same car.
Worked example
At $100,000 salary with $900 pre-tax and $300 post-tax per month, estimated annual tax saved is $3,456. The pay impact is $912 per month before any extra costs. Over five years plus a $15,000 residual, total cost is $69,720. Buying for $50,000 with $4,500 annual running costs totals $72,500: a $2,780 difference.
Limits
- The quote must include finance, fees, running-cost budgets and the correct FBT/GST treatment. No vehicle eligibility, GST credit or FBT exemption is assumed. Ask the provider about reconciliation of unused budgets and early termination.
- HELP repayments, Medicare levy surcharge, child support, benefit income tests and super effects are not calculated. A reportable fringe benefit can affect them even where the car is FBT exempt. Add the estimated annual cost in the adjustment field.
- Holds salary and 2026–27 tax rates fixed for the whole term. Uses the existing 2025–26 individual Medicare thresholds as an approximation; excludes family thresholds, exemptions, other deductions and offsets beyond LITO. This is not a payroll or future tax-year forecast.
- Totals are nominal cash costs. Resale value cancels only because the same car is owned at the end; investment returns on upfront cash are excluded. The loan comparison finances the entire price without a deposit, balloon or fees; include fees in the purchase price.
Sources
General information and estimates only, not personal financial, tax or legal advice. Replace example inputs with your own quotes and budget.