Lease Buyout Calculator

Calculate the total cost to buy your leased vehicle at lease end. See the buyout price including residual value, purchase option fee, and sales tax.

About the Lease Buyout Calculator

At the end of your lease, you have the option to purchase the vehicle at its predetermined residual value. If the car's market value exceeds the residual, buying it can be a smart financial move. If the market value is below the residual, you're better off returning it.

The total buyout cost includes the residual value, a purchase option fee (typically $200–$500), and sales tax. Some lessees also finance the buyout with a new auto loan, adding interest costs to the equation.

This calculator helps you determine the total out-of-pocket cost to buy your leased vehicle and compare it to the car's current market value to see if it's a good deal.

Whether you drive a compact sedan, a full-size SUV, or a pickup truck, accurate lease buyout figures help you plan smarter and avoid costly surprises at the pump or dealership. Use this tool regularly to track changes over time and adjust your transportation budget accordingly.

Why Use This Lease Buyout Calculator?

Knowing the exact buyout cost lets you compare it to the car's market value. If the buyout is less than what the car is worth, you're getting a bargain. You also avoid disposition fees, mileage penalties, and wear charges by buying. Results update instantly as you adjust inputs, making it easy to explore different scenarios and find the best option for your driving needs and budget.

How to Use This Calculator

  1. Enter the residual value from your lease contract.
  2. Enter the purchase option fee (check your lease agreement).
  3. Enter your state sales tax rate.
  4. Optionally enter the car's current market value (from KBB, Edmunds, etc.).
  5. Review the total buyout cost and equity analysis.

Formula

Total Buyout = Residual Value + Purchase Fee + Sales Tax Sales Tax = (Residual + Purchase Fee) × Tax Rate Equity = Market Value − Total Buyout

Example Calculation

Result: Buyout: $23,915 | Equity: $1,085

Residual: $22,000 + Purchase fee: $350 = $22,350. Sales tax at 7%: $1,564.50. Total buyout: $23,914.50. If the car's market value is $25,000, you have $1,085 in instant equity — buying is a good deal.

Tips & Best Practices

Evaluating the Buyout

The key question is whether the car's market value exceeds your total buyout cost. Check multiple sources: KBB, Edmunds, CarGurus, Carvana, and CarMax. If the market value is $2,000+ above your buyout, buying and either keeping or selling the car makes financial sense.

Added Benefits of Buying

Beyond the financial equation, buying your lease avoids disposition fees ($300–$500), excess mileage charges, and wear-and-tear penalties. You also already know the car's complete history, which eliminates the uncertainty of buying a used car.

Financing the Buyout

Credit unions often offer the best rates for lease buyout loans. Get pre-approved before committing to the leasing company's financing offer. The loan amount is the total buyout price minus any down payment you choose to make.

Frequently Asked Questions

What is a lease buyout?

A lease buyout is purchasing your leased vehicle at the end of the lease term (or sometimes early) at the residual value plus applicable fees and taxes. It's an option in virtually every lease contract.

How is the buyout price determined?

The buyout price is the residual value (set at lease signing) plus a purchase option fee ($200–$500). This doesn't change regardless of the car's actual market value, which is what creates buyout opportunities.

When is buying out a lease a good deal?

When the car's current market value exceeds the residual value by more than the fees and taxes. In strong used car markets, this is common. Also consider buying if you'd face high return penalties.

Can I finance a lease buyout?

Yes. You can get a standard auto loan from a bank, credit union, or the leasing company. Shop around for the best rate. Some lenders specialize in lease buyout financing with competitive rates.

Can I buy out my lease early?

Most leases allow early buyout, but the payoff amount includes remaining payments plus the residual. This is usually more expensive than waiting until lease end. Check your contract for the early buyout formula.

Can I sell to a third party instead?

Some leasing companies allow you to sell directly to a third party or dealer. Others require you to purchase the car first, then sell it. This can be profitable if market value significantly exceeds the residual.

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