Are you thinking about upgrading your wheels? Before you sign anything or head to the dealership, pause. There’s one tool that could save you thousands before you even leave the driveway – a novated lease calculator.
If you’re considering salary packaging a vehicle through work, a novated lease gives you more than just convenience. It’s also one of the most tax-effective ways to finance your next car. But to know exactly how much you’ll save – or spend – you’ll need some numbers.
The novated lease calculator is quite useful. Whether you’re comparing lease types, exploring your employer’s car allowance, or wondering how a used vehicle stacks up, a calculator gives you the clarity you need to plan with confidence.
What Is a Novated Lease?
A novated lease is a three-way agreement between you, your employer, and a finance provider. It lets you lease a car using pre-tax income, reducing your taxable salary and possibly increasing your take-home pay.
You can package:
- Lease payments
- Fuel
- Registration
- Insurance
- Servicing and tyres
And yes – that even applies to electric vehicles.
It’s a smart way to budget for a car without juggling bills.
Why Use a Novated Lease Calculator?
A novated lease calculator takes the guesswork out of budgeting. It shows you:
- Estimated weekly or monthly payments
- Net savings compared to traditional finance
- Fringe benefits tax (FBT) impact
- Fuel and running cost estimates
- Total cost over the lease term
In short, it gives you the full financial picture before you make a move.
Need one now? Try this user-friendly novated lease calculator from Vehicle Solutions Australia.
How It Works
Using a novated car lease calculator is simple. You’ll input:
- Vehicle price (new or used)
- Lease term (typically 1 to 5 years)
- Annual kilometres driven
- Income bracket and tax rate
- Running costs (you can estimate or use defaults)
Then you’ll receive an estimated breakdown showing:
- Pre-tax and post-tax deductions
- GST savings
- Fuel, servicing, and insurance estimates
- Total cost of ownership
And you can adjust it on the fly. Want to try a different car? Or increase the lease term? The calculator updates everything instantly.
Comparing Novated Lease Calculators in Australia
Not all tools are built the same. When looking for a novated lease calculator Australia wide, choose one that:
- Includes salary packaging tax implications
- Works for both new and used vehicles
- Factors in running costs, not just repayments
- Reflects current ATO guidelines and thresholds
Vehicle Solutions’ novated lease calculator does all this in minutes – no spreadsheets or fine print required.
Used Cars? You’re Covered Too
Leasing a used car? You’re not alone. More Australians are asking if there’s a novated lease used car calculator – and yes, there is.
Used vehicles can be leased under the same agreement, provided they meet age and condition guidelines. The calculator lets you input your vehicle price manually, making it ideal for those considering a second-hand option from a dealer.
Used cars often mean:
- Lower lease repayments
- Slower depreciation
- Similar tax benefits
Just make sure the car is under 10 years old at the end of lease term – that’s a standard lender rule.
What About EVs?
Electric vehicles are hot right now – and for good reason. With recent FBT exemptions introduced for eligible EVs, a novated lease EV calculator is a must-have for salary packagers.
You can now lease many EVs 100% tax-free, thanks to the Electric Car Discount bill. That means:
- No FBT on eligible EVs under $89,332 (2023–24 threshold)
- Significant income tax savings
- Low running costs from electricity vs fuel
The calculator factors in these benefits when you select an electric model – making it one of the best tools to evaluate EV affordability.
How Does a Novated Lease Compare to a Car Loan?
You might be asking: “Can’t I just take out a car loan instead?”
Here’s where the novated lease savings calculator shines. It helps you compare:
| Novated Lease | Car Loan | |
| Tax savings | Yes (pre-tax income used) | No |
| GST on car price | Claimed by employer | Paid in full |
| Fuel and service costs | Salary-packaged | Paid after tax |
| Flexibility | Easy to upgrade or exit | Locked into contract |
| Ownership | Lease, with buyout option | Immediate |
The calculator shows you exactly what you’ll pay under both options – with the tax savings included.
Are Novated Lease Interest Rates Competitive?
Yes, and they’re often better than unsecured car loans. The novated lease interest rate is based on:
- Vehicle age and condition
- Lease term
- Credit history
- Market rates
Because the lease is secured by the vehicle and supported by employer deductions, rates can be more favourable.
The calculator won’t show your personal interest rate, but it factors in typical ranges so your estimate is realistic.
Who Should Use a Novated Lease Calculator?
It’s perfect for:
- Employees with access to salary packaging
- Employers comparing car allowance options
- Anyone considering a new, used, or electric car
- Budget-conscious drivers
- Families wanting to avoid large upfront costs
Even if you’re not sure you’re eligible, a quick check with the calculator can spark the right questions to ask your HR team or accountant.
Final Thoughts
Before you buy, finance, or even test drive, plug the numbers into a novated lease calculator. It’s the smartest way to see if a novated lease fits your budget and goals.
Don’t make assumptions based on hearsay. Use the calculator to:
- Test different vehicle prices
- Compare lease vs loan
- See EV vs petrol savings
- Check your weekly out-of-pocket cost
Start here with the accurate novated lease calculator from Vehicle Solutions Australia – and drive away with confidence.
