Get a Clear Estimation of Savings through Novated Lease Calculator

Novated leasing is common in Australia as an agreement between three parties: a leasing company and an employer and his employee. The latter form a contract which includes car leasing costs within the salary package of the employee. The employer deducts lease payments through his pre-tax salary while the employee gets to enjoy reduced tax benefits. 

A novated lease calculator must be used by the employee in order to get a clear picture of all the costs he has to bear before going ahead with this agreement. These calculators are designed and programmed specifically to deal with financial calculation related to novated lease. The results are accurate. It is better to be aware about your accurate expenditures instead of a mere rough estimation.

1. The general benefits of a novated lease calculator are:
2. Accurate calculation of the savings an employee would have on the purchase of specific cars through a novated lease agreement.
3. Calculation of all the costs related to the lease including the lease repayments.
4. Calculation of a vehicle’s residual value after the completion of the lease period
5. Determining the benefits of long term loans in comparison to short term loans.

The accuracy of a novated lease calculator depends upon the data you use as input. All the values and information you enter must be accurate if you want accurate results. You would need the following information for this purpose:

1. The type of the car an individual wants to lease and its price
2. The length of the lease period
3. The specific method used for the calculation of fringe benefit tax
4. The state where an employee is going to buy the vehicle
5. The yearly salary of the employee.
6. The expected number of kilometers which they buyer would drive every year.

A novated lease calculator uses the above mentioned information in order to give you accurate calculations. This is very helpful before entering into a novated lease agreement. After figuring out your lease expenditure and savings, you can decide which vehicle to purchase. Perhaps, the vehicle you have in mind is more expensive than what you can afford. So, from the results of the novated lease calculations, you can determine which car would be best for you according to what income you generated every year, what you can afford and what you would save. These results are reliable. Therefore, this calculator can be used without having any doubts.