Novated Lease Calculator
Compare the cost of a Novated Lease vs Car Loan vs Cash.
See how much you can save with the EV FBT Exemption.
Your Details
Interest Rates (%)
Opportunity cost of using cash (e.g. Mortgage Offset)
Savings vs Car Loan
Total estimated savings over the lease term compared to a standard car loan.
Savings vs Buying Outright
Total estimated savings compared to buying outright with cash (accounting for offset interest).
Detailed Comparison
| Comparison | Novated Lease | Car Loan | Cash (Offset) |
|---|---|---|---|
| Weekly Cost | $413 | $529 | $520 |
| Total Cost (Term) | $64,376 | $82,491 | $81,062 |
Key Benefits
- GST Savings (Car + Running)$6,867
- Income Tax Savings$17,499
End of Lease
To own the car at the end of the lease, you must pay this residual amount (including GST). You can also choose to refinance or sell the car.
Good to Know
Everything you need to understand about Novated Leasing and FBT exemptions.
What is a Novated Lease?
A novated lease is a three-way agreement between you, your employer, and a finance company. It allows you to pay for your car and its running costs (fuel/charging, insurance, servicing) from your pre-tax salary, potentially reducing your taxable income.
EV FBT Exemption
From 1 July 2022, eligible electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) are exempt from Fringe Benefits Tax (FBT) if the car's value is below the Luxury Car Tax threshold ($91,387 for 2024-25). This makes novated leasing an EV significantly cheaper.
How this calculator works
This calculator estimates your weekly and total costs under three scenarios:
Includes tax savings, GST savings on car & running costs, and FBT implications.
A standard personal car loan paid from your post-tax salary.
Models "borrowing from yourself" at your Offset Rate to capture opportunity cost.
Note on Accuracy
This calculator provides an estimate based on the inputs provided. Actual costs may vary depending on your specific lease agreement, exact tax circumstances, and changes in legislation. The "Cash" option uses an amortization method to ensure a fair comparison against the "Car Loan" option.
Note on Accuracy
While this calculator provides a detailed estimate based on standard ATO rates and typical lease structures, actual savings will vary depending on your specific lease provider's fees, your employer's policies, and your personal financial situation. Always seek professional financial advice before entering into a lease agreement.