Breakdown of Lease Cost

To give an example of how leasing can help businesses with their cash flow as well as the added benefit of tax deductions, see the Analysis below.

1 ) Equipment Cost: $2,400.00

2 ) Monthly Lease Payment Equipment Cost:  $50.00 X 48mo

3 ) Annual Gross Cost ($357.00 x 12mo): $600.00

4 ) Tax Deduction (Estimated 40% of Annual Gross Cost):  $240.00

5 ) Net Annual Cost (Annual Gross Cost minus Tax Deductible Amount):  $360.00

6 ) Net Cost per Month (Net Annual divided by 12):  $30.00

7 ) Net Cost Per Day (Net Cost Per Month divided by 22*):  $1.36

8 ) Net Cost Per Hour (Net Cost Per Day divided by 8**):  $0.17

*22 is average business days in a month (you can adjust for your schedule)

**8 hours, based on the average business schedule