RENT V/s BUY Balance Sheet Benefits Calculator


Cost Of Equipment in Rs.


Interest On Capital Employed (%)


Effects Of Buying IT Equipment on your Balance Sheet Total Cost of Ownership by Buying the Equipment
Cost By Year Year 1 Year 2 Year 3 Cost Components Cost (Rs.)
Cost of Equipment when Purchased - - Total Cost of Equipment (A)
Total Interest Cost (B)
Cost of Equipment As Per Accounting Books (A) Total Ownership Cost (A+B)
Depreciation Amount Claimed @60% (B)
Tax Benefit By Claiming Depreciation @30% Total Savings on Tax Depreciation
Value of Equipment After Depreciation (A-B) Net Cost After 3 Years


Effects Of Renting IT Equipment on your Balance Sheet Total Cost of Ownership by Renting the Equipment
Cost By Year Year 1 Year 2 Year 3 Cost Components Cost (Rs.)
Cost of Equipment when Rented - - Total Cost of Equipment
Average Yearly Rental Cost @ 40.5% Total Rental Paid for 3 Years (A)
Residual Value at Year 3 - - Total Residual Value (B)
Lease Amount (Claimed As Expenses) @100% Total Ownership Cost (A+B)
Tax Benefit By Claiming Depreciation @30% Total Savings on Tax Depreciation (C)
Net Cost After 3 Years (A+B)-(C)


Savings on Equipment (A) Net Savings If You Rent Over 3 Years (A+B)
Opportunity Cost on Capital Employed @ 9% F.D. (B) % Savings on Cost Of Equipment Over 3 Years


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