Lease vs Buy Calculator - Canada

The Lease vs Buy Calculator to helps determine whether to lease or buy business equipment in Canada. You can compare the cost of leasing to the cost of buying accurately because the calculator takes into account tax rates and the time value of money.

If you're outside canada, visit: Lease vs Buy Calculator - U.S.

Fill out the form fields below - the best option as well as relevant relevant cash flows will be identified automatically.

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for all platforms
- All versions require Java 1.5 or later
- Runs on Windows, Mac and Linux
Platform independent program
Current version: 1.0
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  1. Under the "Enter Values" tab, fill in the fields under "Cost of Leasing" and "Cost of Buying". A description of each field will appear when you select it.
  2. Select the "Lease" tab to view details about cash flows related to leasing.
  3. Select the "Buy" tab to view details about cash flows related to buying.

A field that may require further explanation is the "CCA class rate" field under "Cost of Buying". This field is explained below.

CCA (Capital Cost Allowance) class rate:
You're allowed to deduct payments for income tax purposes if the asset is qualified by the CCRA (Canada Customs and Revenue Agency). Capital Cost Allowance (or CCA) is depreciation for the purposes of taxes in Canada. Every asset is assigned to a particular class. Each class has its own rate that's used for tax purposes

The deduction rate varies depending on the asset you bought. Click the "?" next to the "The CCA class rate" field . A popup window will appear. Use it to find the class that corresponds to what your asset and then click "select". This will enter the correct CCA class rate for you.

More information about the CCA:

This calculator is based on, inspired by, and an improved version of the one available at the Canadian government's "Canada Business" website.