Calculator methodology

Novated Lease Implied Finance Rate: Methodology

The existing GPS calculator solves for the periodic discount rate that equates the amount financed with the present value of contractual rentals plus the residual.

Calculation approach

  • Use the contractual finance rental, not the total payroll deduction.
  • Keep amount financed, rental and residual on a consistent GST basis.
  • Payment count and timing matter; a nominal 36-month term does not prove there are 36 end-of-month rentals.

What the calculator deliberately does not decide

The calculator does not select a lender, predict approval, expose lender policy or provide personal financial or tax advice. It is a transparent comparison tool so you can test structure before seeking a quote.

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Sources and verification

General information only. It is not personal financial, tax or legal advice. Finance approval, pricing and structure are subject to lender assessment and your circumstances.

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