ROI & Tax Savings Calculator | Mehmi Financial Group

ROI & Tax Savings Calculator

Estimate your Return on Investment and potential CCA tax deductions for equipment purchases in Canada.

How are you acquiring this equipment?
Est. Income Tax Reduction
$0
Year 1 (at 26.5% tax rate)
Return on Investment
0%
Annual ROI
Note: Calculations based on selected year. CCA applies once equipment is available for use.
Asset & Timing
Revenue & Costs
Tax Options

5-Year CCA Depreciation Schedule

Declining balance method with applicable AII enhancement

CCA Deduction
Remaining UCC
$0
Total 5-Year CCA
$0
Est. Tax Reduction*
0 yrs
Payback Period
Before Sale: If sold, you may owe recapture or claim a terminal loss. Consult a tax professional.

Financial Analysis

Equipment Cost$100,000
Year 1 CCA Deduction$0
Year 1 Est. Tax Reduction$0
Annual Net Profit$0
Effective Equipment Cost$0

Key Metrics

0%
Annual ROI
30%
CCA Rate
26.5%
Tax Rate
$0
Net Cost
Est. Annual Deduction
$0
Lease payments (at 26.5% rate)
Return on Investment
0%
Annual ROI
Leasing: Lease payments are generally deductible as a business expense. Special limits apply to passenger vehicles.
Lease Details
Tax & Revenue
Tax Treatment
$0
Total Lease Payments
$0
Est. Tax Reduction
$0
Effective Cost

Lease Analysis

Monthly Payment$0
Deductible Amount (annual)$0
Annual Est. Tax Reduction$0
Net Annual Lease Cost$0
Annual Net Profit$0
Total Cost Over Lease Term$0

Key Metrics

0%
Annual ROI
48
Months
26.5%
Tax Rate
$0
Net Cost

Buying or Financing (Ownership)
When you purchase or finance equipment, you're treated as the owner for tax purposes. You claim Capital Cost Allowance (CCA) to deduct the cost over time.

Leasing
Under a true operating lease, you typically do not own the asset. Instead, you deduct lease payments as a business expense in the year they're paid. Special limits apply to passenger vehicles.

Which is right for you?
The best choice depends on cash flow needs, usage duration, and your tax situation. Consult CRA guidance and a qualified tax professional.

Capital Cost Allowance (CCA) is the Canadian tax system's method of allowing businesses to deduct the cost of depreciable property over time using the declining balance method.

Important: CCA deductions only reduce your tax if you have taxable income. Unused CCA can be carried forward.

Accelerated Investment Incentive (AII) provides enhanced first-year CCA deductions during the phase-out period (2024-2027).

Assets subject to half-year rule: Enhanced deduction is 2× normal (removes half-year rule).
Assets NOT subject to half-year rule: Enhanced deduction is 1.25× normal.

Special Classes: Classes 43.1, 43.2, 53, 54, 55, and 56 have immediate expensing rules (75% for 2024-2025, 55% for 2026-2027).

Class 10 (30%): Commercial vehicles, trucks, tractors, trailers.
Class 10.1 (30%): Passenger vehicles exceeding cost limit ($38,000 for 2025).
Class 16 (40%): Heavy freight trucks >11,788 kg GVWR.

Class 54 (30%): Zero-emission passenger vehicles (limit $61,000).
Class 55 (40%): Zero-emission heavy trucks.
Class 43 (30%): Manufacturing machinery.

Class 53 (50%): Manufacturing equipment 2015-2026.
Class 43.1/43.2: Clean energy equipment.
Class 50 (55%): Computer hardware.

Disclaimer: This calculator provides estimates for informational purposes only and does not constitute tax, legal, or financial advice. Always consult with a qualified accountant or tax professional. Mehmi Financial Group is an equipment financing brokerage, not an accounting firm.

*Tous les montants sont en dollars canadiens. Estimations seulement — il ne s'agit pas d'une offre ou d'une approbation de financement. Taxes (TPS/TVP/TVH) NON incluses.

Use this free calculator to estimate business loan payments, test affordability based on your payment budget, and compare two loan scenarios side-by-side. It is built for Canadian business owners planning working capital, expansion, inventory, repairs, hiring, and other major expenses.

What you can do on this page

  • Estimate payments using loan amount, interest rate, term length, and payment frequency
  • See total interest cost and total repayment over the full term
  • Work backwards from a payment budget to estimate borrowing power
  • Compare two loan options to see which costs less overall

FAQs

Everything you need to know about how this calculator works, what the results mean, and what is included. If you need a quote or help reviewing your numbers, feel free to contact our credit analysts.
Get in touch
Does using the calculator commit me to a financing agreement?
No, using the calculator is entirely free and informational. It does not constitute an agreement or guarantee approval for financing.
What information do I need for a realistic estimate?
Loan amount, interest rate assumption, term length, and payment frequency.
How is the payment calculated?
Payments are calculated using standard amortization based on the loan amount, periodic interest rate, and number of payments.
What is included in “total cost” and “total interest”?
Total cost is the sum of scheduled payments over the term. Total interest is total cost minus the original loan amount.
What does the affordability tab show?
It estimates the maximum loan amount based on the payment you can comfortably make, plus your chosen rate and term.
How accurate are the results?
They are estimates. Real terms can differ based on your business profile, lender requirements, fees, and product structure.

Disclaimer:
This Truck & Heavy Equipment Financing Calculator is provided for informational purposes only. It offers estimates based on the information provided and current average rates, which may vary depending on individual creditworthiness, lender policies, market conditions, and other factors. This calculator does not constitute a loan offer, lease offer, or approval from Mehmi Financial Group or its affiliates. Please contact Mehmi Financial Group directly to confirm current rates, terms, and actual financing availability. Mehmi Financial Group accepts no liability for decisions made using this calculator.

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