Should you buy or lease your furniture? Find out by entering your furniture costs in the green box and press your TAB key. A summary comparison can be found at the bottom of this report. Don't know your furniture costs? Use our Furniture Budget calculator.

Note: The calculator below will only work on a PC running Internet Explorer. Firefox and Mac users may download this Excel spreadsheet version.

FINANCIAL COMPARISON
PAYING CASH VS.LEASE FINANCING (FMV not to exceed 5%)
Term of Lease 60 Months
 
Paying Cash   LEASE FINANCING  
 
Enter Your Equipment Cost -> Equipment Cost
 
Loss of Income
Income accrued on principal (12% OVER 60 MONTHS)* 		Monthly lease payment
 
Less 40% tax paid    
 
Total Net Income lost Total of all lease payments (2190 X 60)
 
Pre-Tax Cost of Equipment Pre-Tax Cost of Equipment
 
Less Tax Savings
Depreciation of principal amount @ 40%		 Less Tax Savings
Monthly write-off of total @ 40%
 
Post-Tax Cost of Equipment Post-Tax Cost of
Equipment
 
    FMV Buyout
5% of principal**
(less tax savings)
 
Total Net Cost of Equipment Total Net Cost of Equipment
 
Average Cost per Month Average Cost per Month
 
Lessee Saves:
  Per Month  
  Per Year  
 
  60 Month Term  
* Source: Dun & Bradstreet,1998. D&B research shows that the average company receives a 12% return on every dollar of working capital that is re-invested. ** In most circumstances, we are able to cap the FMV buyout at not to exceed 5%

Leasing is one of the most popular methods of financing the office furniture purchase. bfi and its strategic partners can offer you flexible plans to meet your budget. Read more about our Leasing Services or if you work in New York or New Jersey contact us today.

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