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How to Use the Auto Expense Evaluator

This tool compares two common methods for business vehicle costs and shows which option produces the better after-tax net benefit: Company Vehicle vs Mileage Allowance. It also includes a break-even % business-use target.

GST/HST ITCs Tax deductions Standby/Op benefit (estimate) Break-even planning

Step 0 – Choose your scenario

  • Purchase vs Lease: switches the vehicle cost model and caps
  • Gas/Hybrid vs EV: affects the luxury cap assumptions
  • Work Vehicle Exception: check only if it’s a pickup/van used 90%+ for business

Step 1 – Enter the costs

  • Price / Lease: vehicle cost (as shown on invoice/contract)
  • Province: used to estimate GST/HST and ITC extraction
  • Interest (purchase mode): estimated annual interest expense

Step 2 – Enter usage

  • Total KM and Business KM: determines business-use % and taxable benefit risk
  • Annual Op Costs: fuel/insurance/repairs (what the vehicle costs to run)
  • Tax Bracket: used to estimate personal tax on standby/operating benefits

Reading the results

  • Winner banner: shows the better option and how much better
  • Luxury cap warning: indicates when deductions/ITCs are limited
  • Break-even message: the business-use % where the best option flips
Quick tip: If you’re close to the break-even %, small changes in business km or operating costs can change the winner. Use this as a planning tool, then confirm final numbers with your accountant.

Auto Expense Evaluator

Analysis includes GST/HST Refunds, Deductions, and Break-Even Planning.
Purchase
Lease
Gas/Hybrid
EV
Step 1: The Costs
Step 2: Usage
Strategic Planning
Option A: Company Vehicle
Company Pays Ops + 0
Corp ITC Refund (Total) + 0
Corp Tax Savings (All Deductions) *Ops, Interest, Depreciation
+ 0
Less: Personal Tax (Standby) - 0
True Net Benefit 0
Option B: Mileage Allowance
Tax-Free Allowance + 0
Corp ITC Refund (Deemed) + 0
Corp Tax Savings (Allowance) *Deduction on Allowance Paid
+ 0
Less: You Pay Expenses - 0
True Net Benefit 0