Free Novated Lease Calculator (EV and Petrol)
This novated lease calculator shows what leasing a car through your salary really costs your take-home pay, the income tax you save, and how an FBT-exempt electric car compares with petrol.
Novated lease calculator: savings by salary
| Salary | EV: cost a year | EV: saving | Petrol: cost a year | Petrol: saving |
|---|---|---|---|---|
| $70,000 | $10,910 | $7,054 | $15,260 | $2,704 |
| $90,000 | $11,105 | $6,859 | $15,305 | $2,659 |
| $120,000 | $11,105 | $6,859 | $15,305 | $2,659 |
| $150,000 | $10,055 | $7,909 | $14,862 | $3,102 |
| $200,000 | $9,162 | $8,802 | $14,355 | $3,608 |
How a novated lease saves tax
Your employer pays the lease and running costs from your salary before tax, so you pay less income tax. The financier claims the GST on the car price (up to $6,353, 1/11 of the $69,883 car limit) and the GST on running costs is claimed too, so you pay those costs without GST.
A car provided this way is a fringe benefit. For a petrol, diesel or plug-in hybrid car, the taxable value under the statutory formula is 20% of the car's cost a year. Most leases avoid the 47% FBT by having you pay that amount from after-tax pay (the employee contribution method). An eligible electric car is exempt, so everything comes from pre-tax pay, though the value still shows as a reportable fringe benefit ($20,755 a year on a $55,000 EV), which can affect HECS repayments, the Medicare levy surcharge and some government payments.
ATO minimum residual values
| Lease term | Minimum residual | On a $55,000 car |
|---|---|---|
| 1 year | 65.63% | $32,813 |
| 2 years | 56.25% | $28,125 |
| 3 years | 46.88% | $23,438 |
| 4 years | 37.50% | $18,750 |
| 5 years | 28.13% | $14,063 |
Electric car FBT changes from 1 April 2027
The 2026-27 Budget announced that from 1 April 2027, EVs valued up to $75,000 keep the full exemption (for arrangements starting before 1 April 2029), while EVs above that and up to the luxury car tax threshold get a 25% FBT discount instead. Existing leases keep the treatment they started with. The bill was before Parliament when we last checked (2026-11-12) and is not yet law, so this calculator uses the current full exemption.
Frequently asked questions
How does the novated lease calculator work?
It finances the car price less GST (the financier claims the GST credit, up to $6,353), sets the ATO minimum residual for the term, adds your running costs without GST, and takes the total from your pre-tax salary. For a petrol car it moves the 20% statutory FBT value to your after-tax pay (the employee contribution method). It then compares your take-home pay cost with paying the same costs yourself.
How much does a novated lease save on a $55,000 electric car?
On a $100,000 salary over 3 years at 8% with $5,000 a year of running costs, about $6,859 a year compared with paying the same costs from take-home pay. The same car costed as a petrol car saves about $2,659 a year.
Are electric cars FBT exempt on a novated lease?
Yes, for now. Battery electric and hydrogen cars first held and used from 1 July 2022 are exempt from FBT if no luxury car tax was payable (under $91,661 in 2026-27). Plug-in hybrids lost the exemption from 1 April 2025 unless the lease was in place before then. A Budget measure to give EVs over $75,000 a 25% discount instead of the exemption from 1 April 2027 is before Parliament and is not yet law.
What is the residual on a novated lease?
A balloon payment at the end of the lease, set by the ATO minimum for the term: 65.63% of the financed amount after 1 year, 56.25% after 2, 46.88% after 3, 37.50% after 4 and 28.13% after 5. You can pay it, refinance it or sell the car.
Related calculators
- Salary sacrifice calculator
- Pay calculator
- Take home pay calculator
- NSW car stamp duty calculator
- Income tax calculator
Sources
- ATO: Electric cars exemption
- ATO: FBT rates and thresholds
- ATO: Taxable value of a car fringe benefit
- ATO: Luxury car tax rate and thresholds
- ATO: GST and vehicles purchased under novated leases
- ATO: TD 93/142 residual values for car leases
- Treasury: Fairer tax treatment to encourage affordable EVs (Budget 2026-27)