Business Car Lease Calculator

Enter the Lease Contract

This business car lease calculator estimates rentals and total cash paid from the contract terms you enter. It separates the initial contribution, recurring rentals and the final residual so you can record your client’s cash commitments.

Enter the vehicle cost and initial contribution on the same GST basis. The contribution is a separate capital reduction paid at commencement. It is additional to the first rental. Financed fees are entered before GST and added to capital once. Separately paid fees stay outside financed capital.

The model assumes vehicle-cost GST is excluded from financing. For GST-inclusive inputs, it divides vehicle cost and contribution by one plus their respective supplied GST rates. For GST-exclusive inputs, it uses the entered amounts directly. A contract that finances vehicle-cost GST requires different financing inputs.

A business vehicle lease rental is the contractual payment for the vehicle. An employee’s novated salary package also involves their employer and payroll deductions. This calculator does not model salary packaging, fringe benefits tax or take-home pay.

Calculate the Rental

The rental is the payment whose present value, together with the discounted residual, equals financed capital. Payments in arrears fall at each period’s end. Payments in advance fall at each period’s start, including one at commencement.

For a nominal annual rate, the periodic rate is the annual rate divided by the number of payments per year. For an effective annual rate, it is one plus the annual rate raised to that year fraction, less one. Enter annual rates as percentages.

Let P be financed capital, B the residual before GST, r the periodic rate and n the payment count. The arrears rental is (P - B / (1 + r)^n) × r / (1 - (1 + r)^(-n)). The advance rental is the arrears rental divided by (1 + r).

At a zero rate, both rentals equal (P - B) / n. A fictional $12,000 lease with a $2,400 residual and 12 monthly payments therefore has an $800 rental. This example has no GST or fees.

The calculator accepts monthly, quarterly or yearly payments and complete payment periods only. A 13-month term cannot contain complete quarterly periods. The model uses equal periods, with a fixed rate and no daily accrual or irregular first period.

Show GST Cash Amounts

Your supplied GST rates set the rental and residual cash amounts. The calculator adds the rental GST to each rounded rental and adds the residual GST to the contractual residual. It does not determine GST-credit eligibility or a tax deduction.

The contribution uses the capital GST basis. An inclusive contribution is already its cash amount. An exclusive contribution has the supplied contribution GST added for the cash schedule. This assumes the contribution has that GST treatment. Enter zero contribution GST where the contract contribution is GST-free.

Cash fees include any GST already, so no further GST is added to them. Financed fees are repaid through rentals and the residual; they are not added again as an upfront cash payment. The schedule’s GST column covers rentals and the residual only.

In the fictional default example, the vehicle costs $55,000 including 10% GST. A $5,500 inclusive contribution and $600 financed fee leave $45,600 financed. The term is 60 months at a 7.2% nominal rate, with a $15,000 residual before GST.

The monthly advance rental is $694.64 before GST and $764.10 including 10% GST. The monthly arrears rental before GST is $698.81. A $12 cash fee is paid with each rental. The residual cash payment is $16,500, using a supplied 10% GST rate.

Compare the Total Commitment

Total cash commitment adds the contribution, every rental including entered GST, separately paid fees and the final residual including entered GST. The headline rental excludes the recurring cash fee. The end-of-term figure includes any rental due then, its fee and the residual.

The default example has $41,678 in rentals before GST and $870 in cash fees, including a $150 upfront fee. Its total cash commitment is $68,716. The advance schedule ends with the $16,500 residual alone. An arrears schedule also has its final rental and fee due at term end.

Rentals round to cents before rental GST is calculated. Each schedule row and the exported total use those rounded amounts. The contractual residual stays unchanged. The calculator does not adjust a final rental to remove the small financing-balance difference caused by rounding.

Download the CSV to keep all cash rows and entered assumptions together. Period zero is commencement; the last period is the end of the term. The first row records contribution and upfront fee cash. A separate row records the first advance rental.

Change the term or residual and compare total cash as well as the regular rental. A larger residual reduces rentals while leaving more cash due at the end. A longer term can lower rentals while increasing the total commitment.

The result excludes lease-accounting entries, tax deductions, GST-credit entitlements and any unentered charges. Inputs and the CSV stay in your browser. The calculator sends no contract details to Tax Genie and stores none in browser storage.

For commercial premises, use the business lease calculator to compare rent, incentives and occupancy cash costs.