Swift Accounting & Business Solutions Ltd.
2440 Kensington Rd NW, Calgary, AB T2N 3S1
(403) 999-2295 · mailbox@swiftltd.ca
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Vehicle Lease vs Finance Calculator (2026)
Compare the after-tax cost of leasing or financing a business vehicle, with the CRA price, lease and interest limits applied.
Enter the price, business use, interest rate, loan term, lease payment and lease term to compare.
Net cost difference
Lease
- Cash paid
- GST or HST recovered
- Write-offs
- Tax saved
Finance
- Cash paid
- GST or HST recovered
- Vehicle value less loan owing
- Write-offs
- Tax saved
| Year | Lease | CCA | Interest | Finance |
|---|
Estimate based on 2026 rules. Not tax advice.
Selling the vehicle can bring back some CCA as income, which this estimate leaves out.
How it's calculated
- Finance: capital cost allowance (CCA) on the price up to the cap, plus loan interest up to $350 a month, less what the vehicle is worth at the end of the term.
- A passenger vehicle priced over $39,000 before tax is Class 10.1, and only the first $39,000 qualifies. Zero-emission vehicles are Class 54 with a $61,000 cap.
- First-year CCA is 45% for Class 10 and 10.1 and 100% for Class 54, then 30% a year on the balance.
- Lease: you deduct the lesser of $1,100 a month before tax and the payment scaled by 85% of the list price. Motor vehicles have no cap.
- Tax saved uses the corporate rates, or your own tax when you enter income. See the tax rates. Business use scales every deduction.
Frequently asked questions
Is it better to lease or finance a vehicle for my business?
It depends on the price, the payment and what the vehicle is worth at the end. This calculator compares the net cost after tax over the lease term. Leasing costs more when the payment is above the $1,100 monthly limit or the list price is high, because the excess is not deductible.
How much of a vehicle can I write off?
Only the business-use share. For a passenger vehicle, capital cost allowance is worked on the first $39,000 of the price before tax ($38,000 in 2025). Zero-emission vehicles have a $61,000 limit. Pickups and vans that count as motor vehicles have no price limit.
What is the lease deduction limit?
The CRA lets you deduct up to $1,100 a month before sales tax. If the vehicle's list price is high, the deductible share of each payment is cut again using 85% of the list price.
How much capital cost allowance can I claim in the first year?
For vehicles bought in 2025 or 2026, the reaccelerated investment incentive allows 45% in the first year for Class 10 and 10.1 and 100% for Class 54. After that the rate is 30% of the remaining balance each year.
Can I deduct all of my loan interest?
Interest on a passenger vehicle loan is deductible up to $350 a month. Motor vehicles have no interest cap. In both cases only the business-use share is deductible.
Talk to a Swift accountant
We plan vehicle purchases and leases around the CRA limits for Calgary business owners and their corporations.