What to Look for in a Novated Lease Calculator
A novated lease calculator is a great way to get an indication of the tax savings and lease cost. It can help you decide what vehicle value to budget for based on your income, travel and lease term. Of course a calculator isn’t anything concrete – they are designed to give you as accurate an estimate as possible. Try and find a salary packaging calculator that allows you adjust the inputs and enable you to compare to alternative methods of funding.
Things that are important include:
- Vehicle type – Being able to select the vehicle type will provide a more accurate budget running cost estimate, some calculators allow you to adjust the budgets providing you with an even greater level of accuracy.
- Fuel consumption, tyre costs, servicing – the good calculators will let you customise all these items
- Vehicle value – You might already have discount pricing or be looking a secondhand car, to get an accurate result you need to input the right purchase price.
- Annual income – entering your annual taxable income will be required to provide you with accurate tax savings and lease cost.
- Kilometres – How many kilometers do you expect to drive, accurate budget need accurate kilometers projections.
- Term – again required to provide you with an estimate of savings and cost (the balloon/residual payment should be automatically calculated)
- Lease cost – At the end of the day what is the impact going to be to your take home pay.
- Tax Savings – Compared to other options what is the financial advantage of one over the other.
Tips for Using a Fully Maintained Novated Lease Calculator
To get the most accurate result be sure to input estimated kilometre travel as accurately as possible and make sure you are realistic (base it off last year’s mileage if possible rather than guessing by weekly fuel use).
Put in the car you would LOVE to have and work from there. Play around with different cars in different price ranges and see what kind of difference that makes. You might be set on a particular model, but once you crunch the numbers you might find that a car in a different price range suddenly becomes affordable and more appealing. You can also play around with lease terms which will effect your repayments and overall savings.
Honestly, before you go any further, make sure you try our Novated Leasing Calculator. We’ve spared no expense and ours is the only one in Australia where you can easily compare vs other methods of funding – a loan, lease, mortgage redraw, cash in the bank or even…. free money! It takes into account the latest FBT requirments from the ATO and a spreadsheet can be emailed to you instantly.
Keep in mind that the results you get from using any novated lease are an indication only. You shouldn’t rely on the results when you’re making financial decisions. For accurate figures, contact us for an accurate no obligation quote.