How to Use the Finance Lease Calculator
- Enter your asset price — excluding GST (GST is added to each lease payment)
- Select "Finance Lease" as your structure
- Set your term — 2–7 years
- Enter an interest rate — try 6.5% as an indicative starting point
- Review the residual — the calculator applies ATO minimum residuals automatically
- See your results — monthly lease payment, GST per quarter, annual deduction
ATO Minimum Residual Values
The ATO mandates minimum residuals for finance leases:
| Term | Min. Residual |
|---|---|
| 2 years | 45% |
| 3 years | 35% |
| 4 years | 25% |
| 5+ years | 20% |
Finance Lease FAQ
What happens to the residual at end of term?▼
You pay the residual plus GST to take ownership, refinance it, or sell/trade the asset to cover it. You cannot walk away from the residual.
Is GST included in the lease payment?▼
Yes — GST is added to each lease payment. You claim it as an input credit on each BAS period. Unlike chattel mortgage, there's no large upfront credit.
Can I set the residual higher than the ATO minimum?▼
Yes. A higher residual means lower regular payments. Just be aware you'll owe more at the end of the term.