Car Finance vs. Novated Lease Calculator

Compare out-of-pocket dealership finance against a salary-packaged novated lease program.

1. Put In Your Numbers

*Includes estimated annual fuel/power, servicing, comprehensive insurance, and registration.

Cost Benefit Breakdown

Standard Finance Out-of-Pocket (Yr): $0
Novated Lease Out-of-Pocket (Yr): $0
Net Annual Savings: $0
Est. ATO Residual (Balloon): $0
Option A: Keep & Own Outright
Total Finance Lifecycle Cost: $0
Total Lease Lifecycle Cost: $0
Option B: Sell Vehicle at End
Finance Net Lifetime Cost: $0
Lease Net Lifetime Cost: $0
Average Annual Savings
$0
Total Program Savings
$0
Hover over the graph to track cumulative out-of-pocket expenses year-by-year (including final balloon payment)

How Novated Lease Optimization Works

  • Pre-Tax Income Optimization: A novated lease enables you to pay for your finance installments and bundled running costs directly from your gross salary before income tax is calculated.
  • The Electric Vehicle (EV) Incentive: Qualifying EVs are exempt from Fringe Benefits Tax (FBT), allowing 100% of program expenses to be packaged using pre-tax funds.
  • GST Savings: You pay $0 GST on the vehicle purchase price and all operational costs like fuel, electricity, and servicing.
  • Dealership Loan Comparison: Standard finance uses 100% post-tax dollars, meaning every dollar spent must clear your top marginal tax bracket first.
  • ATO Residual Value: A balloon payment is established at the end; you can pay this to own the car, or re-lease to continue tax benefits.
  • General Information Only: The information on this website is for general information only. It should not be taken as constituting professional advice from the website owner, ClearCents.
  • No Financial Advice: ClearCents is not a financial adviser. You should consider seeking independent legal, financial, taxation, or other advice to check how the website information relates to your unique circumstances, particularly regarding salary packaging and tax.
  • Liability: ClearCents is not liable for any loss caused, whether due to negligence or otherwise, arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website.
  • Illustrative Purpose: The results provided by this calculator should not be taken as a substitute for professional advice. ClearCents provides no warranties and makes no representation that the information provided is appropriate for your particular circumstances or indicates you should follow a particular course of action.
  • ATO Residual Values: Calculations apply standard ATO-mandated residual value percentages based on the lease term selected. Your specific lender or lease provider may apply different residual requirements.
  • Taxation Modeling: Salary packaging tax savings are estimates based on your provided marginal tax rate. We assume this rate remains static throughout the lease term and includes the standard Medicare Levy.
  • GST Treatment: The calculator assumes that both the vehicle purchase price and ongoing operational costs (fuel/electricity, insurance, servicing) are eligible for full GST input tax credits.
  • FBT Legislation: Novated lease benefits, including FBT exemptions for electric vehicles, are subject to government legislation. Changes to ATO guidelines may impact your future tax savings and eligibility.
  • Operating Costs & Salary Packaging: The model assumes you have the capacity to package the full amount of vehicle finance and running costs within your salary; this remains subject to your employer’s specific salary packaging policy and limits.