Rent Vs Buy | Prime Asset Source

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Rent Vs Buy

Balance Sheet Benefits Calculator

Cost of Equipment

Interest Rate

Equipment
Depreciation
per year

Tax as per
income bracket

Opportunity cost

Total Cost of Ownership by buying the Equipment

For 3 years

Total Cost of Ownership by renting the Equipment

For 3 years

NET SAVINGS BY RENTING

Total Cost of Ownership

Effects Of Buying IT Equipments on your Balance Sheet

Cost to Buy	Year 1	Year 2	Year 3
Cost of the equipment as per accounting books
Depreciation Amount Claimed for the year
Interest cost for buying the equipment
Tax benefit by claiming depreciations under IT slab

Effects Of Renting IT Equipments on your Balance Sheet

Cost to Rent	Year 1	Year 2	Year 3
% of Expenses Claimed on rental paid	100%	100%	100%
Lease Amount paid are treated as Expenses
30% Tax benefit by claiming depreciations under IT slab

Total Cost of Ownership by Buying depreciation

Cost of Equipment
Interest Cost
Savings on Tax Depreciation
Net Cost after 3 years

Total Cost of Ownership by Renting depreciation Input

Net Savings if you rent
Rental Payable Over 3 year
Savings on Tax
Savings on Equipment
Opportunity cost on capital Employed

Equipment Rentals redefined

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