Free tool · Business expenses
Vehicle business-use calculator
Turn the kilometres you drive for business and the total kilometres on the odometer into a business-use percentage, then apply it to the year’s vehicle expenses to see the share that relates to earning income.
An illustration of vehicle kilometres splitting into business and personal use, not your result.
Visual labels: Total kilometres; Business use; Personal use.Your scenario
Expenses are displayed in CAD. Use one vehicle and one period for all three amounts.
- Business use
- 60.00%
- Personal kilometres
- 8,000 km
- Personal share of expenses
- $4,000.00
Passenger-vehicle limits are not applied, and the CRA expects a logbook to support the percentage.
Calculated on this device. These inputs are not submitted to Sora.
How the calculation works
Business-use percentage = business kilometres ÷ total kilometres × 100. Business share of expenses = total vehicle expenses × business-use percentage. The personal share is the remainder. Use the same vehicle and the same period for all three inputs.
A worked example
At illustrative figures, 12,000 business kilometres out of 20,000 total kilometres is 60% business use. Applied to $10,000 of fuel, insurance, maintenance, licence and lease or loan costs, the business share is $6,000 and the personal share is $4,000.
Assumptions and limits
The CRA says that when you use a vehicle for both business and personal purposes you can deduct only the portion of the expenses that relates to earning business income, and you need a record of both the total kilometres and the business kilometres. A full logbook for the year lists each business trip with its date, destination, purpose and distance, and the odometer readings at the start and end of the period. After a full base year, a three-month sample logbook can sometimes support later years. Driving between home and a regular workplace is generally personal. This tool does not apply the limits on capital cost allowance, leasing costs and interest that apply to passenger vehicles, does not separate GST/HST input tax credits, and does not cover a car allowance paid by an employer. Some costs, such as business parking, are generally claimed in full rather than by percentage, so leave them out of the total and add them back separately.
General educational information. Inputs stay on this device and are not submitted. Confirm the assumptions before using a result in a business decision.
Source and further reading
Logbook and business-use rules checked October 24, 2026 against the CRA pages: CRA: motor vehicle expenses; CRA: motor vehicle records and logbooks. The examples above use Sora’s own illustrative figures.
About three minutes
Put the result in context.
Discuss the records, assumptions and next decision with Nauman.
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