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 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.
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.
When you're a temporary resident in Australia, you want to see everything. This can be difficult without a car, but luckily there are some lenders that will consider car loans for people on a work or study visa. Find out how to apply here.
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.
My son is looking to buy an electric car – Hyundi Ionic and has been quoted a weekly lease payment of $260. He currently has a weekly lease payment on a MG ZF of $232 for a car which cost about half of the Hyundi. Why is weekly lease payment only $30 pw more expensive.
Is there a large finacial incentive to buy an electric car in QLD?
Finder
SarahMay 14, 2024Finder
Hi Ralph,
A number of things can impact the weekly payment, including the length of the lease, the amount borrowed, and the interest rate. If you compare the loan contract from the previous car to this car, you should be able to find those details and it might give you more context.
Right now, the Queensland Zero Emission Vehicle Rebate Scheme provides eligible Queenslanders rebates of up to $6,000 for eligible new Zero Emission Vehicles purchased from 21 April 2023.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
My son is looking to buy an electric car – Hyundi Ionic and has been quoted a weekly lease payment of $260. He currently has a weekly lease payment on a MG ZF of $232 for a car which cost about half of the Hyundi. Why is weekly lease payment only $30 pw more expensive.
Is there a large finacial incentive to buy an electric car in QLD?
Hi Ralph,
A number of things can impact the weekly payment, including the length of the lease, the amount borrowed, and the interest rate. If you compare the loan contract from the previous car to this car, you should be able to find those details and it might give you more context.
Right now, the Queensland Zero Emission Vehicle Rebate Scheme provides eligible Queenslanders rebates of up to $6,000 for eligible new Zero Emission Vehicles purchased from 21 April 2023.
There is some eligibility criteria.
Hope this helps!