Wondering how to determine the cost of the equipment
you are leasing? Want to determine your “after
tax” costs? Here is a simple formula to help you
analyze the cost-benefit to leasing and determine the
operating expense. (For illustration purposes only)
| First - take the cost of the equipment |
$89,000.00 |
| Next, the monthly lease payment |
$1977.00 |
| Now, the tax deducation (__% of line 2)*/td>
| $790.80 |
| Deduct like 3 from line 2 (this give you net cost per month) |
$1186.2 |
| Finally, divide by 22 business days** (this give you the net cost per day) |
$53.92 |
| You can continue and divide further by 8 (this give you the net cost per hour***) |
$6.74 |
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* Federal plus state usually around 40%.
**Avg. # of business days/month at five days per week.
***Assumes an 8-hour workday.
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