Equipment Lease Analyser

Equipment Details Cost of Equipment Sale Price at end of loan period CCA Rate Tax Rate Discount Rate Lease Payments Residual Value Number of payments per year Term of Lease Interest Factor or rate Lease Payment $120,000 $50,000 30% 28% 5%

ver 1.0

$50,000 1 5 6.0% $18,507

If you know your lease payments enter them here If you want to use the calculator after all just hit reset button

Loan Payments Down payment Amount of loan Annual Interest Rate Length of Loan Number of payments per year Compounding periods per year Payment per year

$25,000 $95,000 6.0% 5 1 12 Err:520

If you know your loan and interest payments enter them in table below To use calculator after entering pmts hit the reset button

Comparison - After Tax Cash Outflow (without discounting)

Payments Tax Benefit After Tax Cash Outflow - sale at: Lease $92,537 $25,910 $66,626 $60,576 $60,576 $Buy Difference Advantage Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 $6,857 Err:520 Err:520

$50,000

Comparison - After Tax Net Present Value Cash Flows

Net Present Value Net Present Value (recapture or term. loss incl.) Depreciation remaining Recapture $24,490 $25,510

Err:520 Err:520

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Lease
Yr *see note below

Year

Payments

Capital Expense

CCA (only on a Tax purchase at end Deduction of lease) $5,182 $5,182 $5,182 $5,182 $5,182 $$$$$$-

After Tax Cash Outflow $13,325 $13,325 $13,325 $13,325 $13,325 $$$$$$$66,626

Discount Factor 1.000 0.9524 0.9070 0.8638 0.8227 0.7835 0.7462 0.7107 0.6768 0.6446 0.6139

Net Present Value $13,325 $12,691 $12,086 $11,511 $10,963 $$$$$$$60,576

0 1 2 3 4 5 6 7 8 9 10

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Purchase

$18,507 $18,507 $18,507 $18,507 $18,507 $$$$$$-

$$92,537 $-

$$$25,910

Totals

Remaining CCA Compare Err:520

Err:520

Err:520

Err:520

Note * - Year 0 represents the beginning of the year. Lease payment are required in advance so a payment shows in year 0 but not in year 5 since the years 1-5 represent the year end.

Buy
Yr 0 1 2 3 4 5 6 7 8 9 10
*see note below

Year

Payments $25,000 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520

Interest

Undepreciated Capital Cost (UCC) $120,000 $102,000 $71,400 $49,980 $34,986 $$$$$$50,000

CCA

Tax Deduction

After Tax Cash Outflow $25,000

Discount Factor 1.0000 0.9524 0.9070 0.8638 0.8227 0.7835 0.7462 0.7107 0.6768 0.6446 0.6139 0.7835

Net Present Value $25,000 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 $(39,176) Err:520

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Sale

$5,859 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520

$18,000 $30,600 $21,420 $14,994 $10,496 $$$$$$(25,510) $70,000

$6,681 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 $Err:520

Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 Err:520 $(50,000) Err:520

Assume no recapture or Terminal loss on sale

Totals

Err:520

Err:520

$24,490 Remaining Depreciation Below is the calculation if there was full recapture or terminal loss on sale $50,000 $(25,510) $(7,143) $(42,857) Err:520 0.7835 $(33,580) Err:520

Note * - Year 0 represents the beginning of the year. Lease payment are required in advance so a payment shows in year 0 but not in year 5 since the years 1-5 represent the year end.

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Best Hourly Option For a Lease

This sheet allows you to quickly determine the best annual hour selection to choose when considering an equipment lease. Acquire the appropriate information from your dealer and enter it into the yellow cells.

Contract hours per year Annual Payment Charge for extra hours per hp Equipment Horsepower

Lease 1 400 $15,000

Lease 2 600 $16,500 $0.1067 225

Breakeven Hours
Results

462

If you think you will use the equipment for less than 462 hours per year the 400 hour lease is less expensive than the 600 lease.