Finder makes money from featured partners, but editorial opinions are our own.

Novated lease calculator

Use our calculator to find out the repayment amount your employer will be deducting from your salary each pay period to cover the lease of a vehicle.

A novated lease calculator or a commercial hire purchase calculator is used to calculate the repayments of a vehicle loan that an employer took out on behalf of their employee.

In a novated lease, the employer makes the repayments on this vehicle purchase by deducting the repayment amount from the employee’s salary each pay period.

The calculator below is a great tool if you and your employer are planning to apply for a novated lease because it will allow you to get an indication of what the monthly repayment on the loan will be.

It can also be used if you already have a novated lease but would like to manage it better.

Keep in mind novated lease calculators will change depending on who provides your finance. So, you'll need to check the numbers with the provider you choose.

*Whilst every effort has been made to ensure the accuracy of this calculator, the results should only be used as an indication. They are neither a recommendation nor an eligibility test for any product and should not be construed as financial advice, investment advice or any other sort of advice.

How to use the calculator

How to use the novated lease calculator?

The novated lease calculator is quick and simple to use, but it’s important to note that it is just an indication. All you have to do is insert the required information regarding your novated lease and let the calculator do the rest. You’ll need to input the loan amount, the loan term, the interest rate on the loan, and the repayment frequency (weekly, fortnightly, monthly). If you decided on a residual payment on your novated lease you’ll also have to enter in the residual percentage of the loan and the residual amount. This information will allow the calculator to find out the expected repayment amount. Make sure this information is accurate so you get the most accurate result. If you use estimates the calculation will only be an approximation. Here is a breakdown of the information you'll need to put in:

  • Loan amount. This refers to how much money you have borrowed or plan to borrow.
  • Loan term. How long have you been given to repay the loan? This is referred to as the loan term.
  • Interest rate. This is the agreed upon percentage that the lender is charging you to use its money.
  • Repayment frequency. This refers to how often you make repayments.
  • Residual value. This is a lump sum that you pay your lender after your monthly/weekly/fortnightly payments are complete. The residual percentage is the percentage of the loan that makes up the residual payment while the residual amount refers to the total of the lump sum.

Picture not described


Olivia and her employer agreed on a novated lease upon a promotion in her department. Even though her employer will be taking care of the repayments through salary packaging she still wants to know what the repayments will be so she isn't surprised when she sees how much is coming out of her pay.

To figure out the repayments she decides to use the novated lease calculator. The novated lease is for $15,000 with a 3-year term at 5% interest with monthly repayments. Olivia and her employer decided on a residual payment as well. The residual percentage is 3% which makes the residual amount $450. She puts all of this information into the calculator and finds out that the repayment amount will be $436.13 plus an additional $3.20 GST. She now knows to expect $439.33 to be deducted from her pay each monthly pay cycle.

* This is a fictional, but realistic, example.

Frequently asked questions

Is the final calculation a guarantee that I’ll get that loan amount from the bank?

No, the novated lease calculator is only a calculation of the potential repayment you should expect by taking out a loan with the exact amounts you inputted. A bank or lender will make its own decisions about whether you can borrow.

How accurate is the novated lease calculator?

Much like a normal calculator a novated lease calculator uses solid mathematics to come up with the repayment amount. As long as the information you enter into the calculator is accurate, the result will be accurate. If you are using the calculator with estimated numbers your answer will also be an estimate.

Do I need to turn over personal information to use the calculator?

No, personal information is not required to use the novated lease calculator. All you need is information regarding the loan: the loan amount, the loan term, the interest rate, the repayment frequency, and the residual percentage and residual amount if applicable.

If you are planning to take out a novated lease for a vehicle with your employer and you want to get an idea of what you’ll be paying towards the loan, you might want to use the novated lease calculator. All you have to do is enter in the required information regarding your potential loan and you’ll get the results quickly and easily. You can even use it to keep track of a current novated lease. For even more help with your novated lease compare the available loans offered by different lenders to get the best possible deal for you and your employer.

Picture: Shutterstock

More guides on Finder

  • Australian Vs. USA car prices 2017

    Aussies are paying up to 185.14% extra for vehicles compared to our American friends.

  • Car loans for classic cars

    Want to buy a classic car but don't have the ready money? There are still financing options available for classic vehicles. Find out what loans you have to choose one and which one will work best for you.

  • Quick car loans

    You don't need to wait to get car financing. Some lenders can approve you instantly and send your funds on the same day. You can also consider pre-approval. Find out all the ways to get a quick car loan in this guide.

  • Tesla buying guide

    If you're looking at purchasing a Tesla – Model S, Model X or Model 3 – this guide will show you how to choose a vehicle and make your purchase.

  • How do you sell a car under finance?

    Read the guide on how to sell an encumbered vehicle to find out the extra steps involved.

  • How Uber car loans can help you get on the road

    Need a new loan for your next Uber car? Find out what is on offer here.

  • Luxury car tax calculator Australia

    Are you in the market for a luxury car? Calculate how much tax you'll have to pay and find the answer to your luxury car tax questions.

  • Online car finance quotes

    If you’re interested in acquiring a car loan, get yourself an online car finance quote. It’s quite easy to get quotes and you can compare quotes from different lenders to ensure that you end up making the right decision.

  • Bad credit car loans Australia

    Have bad credit but still need a car? There are a range of lenders that will consider you for a loan. Find out how to apply and how you can get approved in this guide.

  • Pre-approved car loans

    Finding the right car loan shouldn't be as hard as finding the right car. Get a loan that will give you pre-approval so you can go shopping with the right amount of funds.

Ask a Question

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our 1. Terms Of Service and 6. Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site