Laptop Rental vs Buying: 3-Year TCO (Worked Framework)
Work out the 3-year total cost of a laptop fleet in India, rented or bought: direct costs (hardware, GST, AMC), indirect costs (downtime, IT time) and the refresh cycle. Put your own quotes into each line.
TCO line items (3-year horizon)
| Category | Item | Notes |
|---|---|---|
| Direct | Hardware (rental or purchase) | Largest line — request quote |
| Direct | GST 18% | Recoverable as ITC for B2B |
| Direct | AMC / warranty | Rented laptops: repairs under the rental terms |
| Direct | Accessories (mouse, charger, dock) | Per unit; varies by spec |
| Direct | MDM licensing (Intune / Jamf) | Per-seat per year |
| Direct | Insurance (theft / damage) | Optional rider |
| Indirect | Deployment time (IT manhours) | Imaging, set-up and handover per unit |
| Indirect | Downtime cost | Productivity loss × hours of failure |
| Indirect | Refresh logistics | Pickup, wipe, redeployment |
| Tax | Section 37 deduction (rental) | Reduces taxable income |
| Tax | Depreciation tax shield (purchase) | 40% WDV per year |
| Recovery | Residual / buyback value | Only applies to purchase |
Three fleet scenarios
- 10-unit fleet — typical for 10-15 person startup or small office
- 50-unit fleet — typical for 50-75 person mid-stage company or growing GCC pod
- 200-unit fleet — typical for established mid-market or large branch office
This is a framework, not tax advice. For the rental side, ask us for a written quote for your fleet size and term; check the tax treatment with your CA.
Frequently asked questions
What goes into a 3-year laptop TCO?
Direct costs: hardware (rental or purchase), GST, AMC or warranty, accessories, insurance, MDM licensing. Indirect: deployment time, downtime cost during failure, IT manhours per ticket, refresh logistics. A complete TCO model captures all of these for a like-for-like comparison.
What's the typical refresh cycle in India?
Many companies refresh laptops every three to four years, and engineering and design teams often sooner because of their spec needs. Align the rental term with your refresh cycle so the comparison is like for like.
How does AMC affect TCO?
For owned laptops, an AMC turns unpredictable repair bills into a fixed yearly cost and reduces the time your IT team spends arranging repairs. For rented laptops, repairs are covered by the rental terms, so there is no separate AMC line. Include whichever applies in each scenario.
Can we model partial fleet refreshes?
Yes. A phased refresh — part of the fleet each year — smooths cash flow and lets newer hires receive newer hardware. Model each year's cohort separately.
What residual value should we assume for owned laptops?
Use a written buyback quote rather than a rule of thumb: residual value depends on model, age, condition and battery health, and MacBooks usually hold value better than Windows laptops. Techvity buys back laptops, desktops, monitors, servers, networking equipment and other IT equipment from companies and quotes per model.
Last updated: 26 September 2026
Get a rental quote for your TCO
Send your fleet size, rental term and refresh plan. We reply within 2 hours during working hours and call or WhatsApp you with a written rental quote (SAC 997315, 18% GST) for your model.