Rent Vs Buy

Balance Sheet Benefits Calculator

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NET SAVINGS BY RENTING  

Total Cost of Ownership by buying the Equipment

For 3 years

Total Cost of Ownership by renting the Equipment

For 3 years

Buying IT Goods

Cost of Equipment when Purchased
Interest Cost Year 1
Interest Cost Year 2
Interest Cost Year 3
Total Interest for 3 Years
Total Cost of Equipment

Renting IT Goods

Cost of Equipment when Rented
Average Yearly Rental 1
Average Yearly Rental 2
Average Yearly Rental 3
Total Rental Paid for 3 years
Final Cost of the Product after 3 years

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
Value of the equipment after depreciation for the year

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
Average Yearly Rental

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

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