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EV lease calculator: novated lease vs paying outright

This calculator estimates the total after-tax cost of getting an EV through a novated lease, compared with paying for it outright, over the lease term. It then shows the difference: how much take-home pay the lease could save you (or cost you).

General information, not financial advice. This is a simplified estimate, not a quote. It doesn't know your full tax position, provider fees or your employer's arrangements. Check the ATO sources below and speak to a licensed financial adviser or registered tax agent before deciding.

How the calculator works

• Lease payment: a standard loan formula on the full car price at your interest rate, leaving the ATO minimum residual for an 8-year effective life (65.63%, 56.25%, 46.88%, 37.5% or 28.13% for 1 to 5 years) (ATO TD 93/142). Real providers add fees and may treat GST differently.
• Tax saved: the lease payments and running costs come out of pre-tax pay. We work out the difference in income tax using the 2026–27 resident rates (nil to A$18,200; 15% to A$45,000; 30% to A$135,000; 37% to A$190,000; 45% above) plus the 2% Medicare levy (ATO resident tax rates). We ignore offsets, the Medicare levy surcharge, HELP debts and low-income Medicare reductions.
• No FBT: eligible zero or low emissions cars below the luxury car tax threshold for fuel-efficient vehicles (A$91,661 in 2026–27) are exempt from FBT (ATO electric cars exemption, ATO LCT thresholds). Plug-in hybrids generally no longer qualify from 1 April 2025 (ATO).
• Residual: you pay the residual from after-tax money at the end of the lease. We don't count the car's resale value in either option, because you own the car at the end in both.
• Buying outright: cash price plus running costs, all from after-tax pay. We don't include the interest you could have earned on the cash.

Things the calculator leaves out

• The exempt car's value is still a reportable fringe benefit, which can affect things like the Medicare levy surcharge, child support and some government payments (ATO).
• From 1 April 2027 the Government plans to limit the full exemption to EVs costing A$75,000 or less. This is not yet law. Read our EV FBT exemption 2027 explainer.
• Provider fees, GST credits on the car and running costs, and insurance excesses all change the result. Ask for a fully itemised quote and compare it with this estimate.

See also: Novated leases & FBT, Novated Lease inclusions, the free novated EV lease checklist, charging costs and current deals.

Sources

• ATO, Tax rates for Australian residents (2026–27): https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents
• ATO, Medicare levy: https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy
• ATO, Electric cars exemption: https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/types-of-fringe-benefits/fbt-on-cars-other-vehicles-parking-and-tolls/electric-cars-exemption
• ATO, Luxury car tax rate and thresholds: https://www.ato.gov.au/tax-rates-and-codes/luxury-car-tax-rate-and-thresholds
• ATO, TD 93/142 minimum residual values: https://www.ato.gov.au/law/view/document?DocID=TXD%2FTD93142%2FNAT%2FATO%2F00001
• ATO, FBT on plug-in hybrid electric vehicles: https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/types-of-fringe-benefits/fbt-on-cars-other-vehicles-parking-and-tolls/fbt-on-plug-in-hybrid-electric-vehicles
• ATO, Electric car discount: proposed changes (not yet law): https://www.ato.gov.au/about-ato/new-legislation/in-detail/businesses/electric-car-discount-more-sustainable-fbt-treatment-of-electric-cars

Last checked: 20 October 2026.