OpEx vs CapEx Laptop Calculator for Indian Businesses
Use this framework to compare laptop rental (OpEx) versus purchase (CapEx) over a 3-year horizon for fleets of 10-500 units in India. Both routes are GST-eligible for input tax credit, but the cash-flow, depreciation, and balance-sheet impact differ materially.
Coming soon: An interactive web calculator. For now, use the framework below and request a custom calculation tailored to your fleet specifications.
The variables
- Number of laptops (N)
- Tenure in months (T)
- Monthly rental per unit (R) — request quote
- Purchase price per unit (P)
- GST rate: 18% (HSN 997315 for rental, HSN 8471 for purchase)
- Income Tax rate (corporate): typically 25.17% under Section 115BAA
- Depreciation rate (WDV): 40% under Income Tax Rules for computers
- Residual value of purchased unit at month 36 (V)
Simplified formula (3-year horizon)
OpEx (Rental):
Total cash outflow = N × R × 36
Less ITC recovered = (N × R × 36) × 18%/118%
Less Tax saved (Section 37) = (Net cost) × 25.17%
= 3-year net cost (Rental)
CapEx (Purchase):
Initial outflow = N × P × 1.18 (incl GST)
Less ITC recovered = (N × P) × 18% (Day 0)
Less Depreciation tax shield (3 yr WDV) = ~58% of purchase × 25.17% over 3 years
Plus residual sale value at month 36 = N × V
= 3-year net cost (Purchase)
Example (illustrative — request quote for actuals)
| Scenario | Fleet | Cash impact (Y1) | Balance sheet |
|---|---|---|---|
| Rental (OpEx) | 50 units × 36 months | Smooth monthly outflow | Off-balance-sheet (typically) |
| Purchase (CapEx) | 50 units outright | Large Y1 outflow, then minimal | Asset on balance sheet, depreciating |
This is a directional framework. Actual numbers depend on negotiated rental rate, purchase price, your tax structure, and CFO preferences for working capital. Submit specs for a custom calculation.
Frequently asked questions
Is laptop rental OpEx or CapEx in India?
Laptop rental is treated as OpEx. The full monthly rental is deductible as a business expense under Section 37(1) of the Income Tax Act, and the 18% GST charged under HSN 997315 is eligible for input credit if your business is GST-registered and the rental is for taxable supplies.
What's the depreciation rate for purchased laptops?
Under Schedule II of the Companies Act 2013, computers and laptops have a useful life of 3 years for accounting purposes (depreciation rate ~40% under WDV method per Income Tax Rules). The asset stays on the balance sheet until fully written off.
Which is better — rent or buy?
It depends on cash flow, refresh cycle, and tax position. Rental is typically better for fast-scaling teams, fleets needing 30-month refresh, or working-capital-constrained businesses. Purchase suits stable, mature fleets where the unit will be retained beyond 5 years.
Can a startup claim full GST input credit on laptop rental?
Yes, provided the startup is GST-registered, makes taxable outward supplies (most B2B startups do), and the rental is used in the course of business. Reconciliation happens automatically via GSTR-2B against the rental vendor's GSTR-1 filing.
Does Ind AS 116 affect laptop rental treatment?
For Ind AS-applicable entities (typically large companies), short-term rentals (under 12 months) and low-value asset exemptions can keep laptop rentals off-balance-sheet under Ind AS 116. Mid-tier rentals (12-36 months) may require ROU asset and lease liability recognition. Your CA should validate based on tenure structure.
Last updated: 30 April 2026
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