Novated Lease Calculator
Estimate the take-home pay impact of a novated lease, comparing pre-tax and post-tax deductions against buying the same car with your own cash.
FBT rules and EV exemption eligibility must be confirmed with the ATO and your employer — this selection does not calculate FBT.
Your results
Calculation breakdown
- Residual value
- $60,000.00 × 30% = $18,000.00
- Estimated tax saving
- $20,822.06 × 32.5% marginal rate = $6,767.17
Assumptions
- This is a simplified pre-tax vs post-tax comparison, not a formal novated lease quote.
- Fringe Benefits Tax (FBT) is not calculated here. FBT treatment, statutory rates and the EV exemption depend on your employer's policy and must be confirmed with the ATO and your employer.
- The lease repayment amortises the vehicle price down to the residual (balloon) value over the term at the interest rate entered.
- Actual lease quotes include establishment fees, admin fees and insurance that are not modelled here.
Results are estimates only and are not financial, tax, legal or credit advice.
Rates and thresholds are configured for the 2026–27 Australian financial year and should be reviewed when government settings change.
Actual entitlements can depend on your award, enterprise agreement, contract, employment status and individual circumstances.
How this calculator works
Enter your salary, the vehicle price, lease term and running costs to see how pre-tax lease deductions reduce your taxable income, what the post-tax employee contribution costs, and the net annual difference compared with paying for the car yourself.
Rates sourced from the Australian Taxation Office for the 2026–27 financial year. Last reviewed 01/07/2026.
Frequently asked questions
What is the employee contribution method?
Paying part of the running costs from post-tax salary offsets the fringe benefits tax liability, which is why novated leases usually mix pre-tax and post-tax deductions.
Are electric vehicles treated differently?
Eligible low-emission vehicles under the luxury car tax threshold can attract an FBT exemption, which materially improves the outcome. Check current eligibility rules before relying on an estimate.
What happens at the end of the lease?
A residual value is payable. You can pay it out, refinance it or sell the car, and any shortfall against market value is your responsibility.
Results are estimates only and are not financial, tax, legal or credit advice.
Rates and thresholds are configured for the 2026–27 Australian financial year and should be reviewed when government settings change.