Are remaining payments always due?

Some lessors may waive remaining payments in a buyout—check your contract and adjust the inputs.

How are taxes applied?

Tax rules vary. Some states tax residual only; others tax the full buyout. This uses one percentage for simplicity.

Trade-in vs private sale value?

Use the value relevant to your plan; private sale often yields more than trade-in.

Title/DMV fees are not included. Add them separately to your buyout budget.

Positive equity—now what?

If equity is positive, you might buy and resell or trade the vehicle to capture the difference, subject to your lease terms.

finance calculator

Lease Buyout Calculator

Estimate your lease buyout cost including remaining payments, residual value, fees, taxes, and potential equity vs market value.

Results

Remaining payments total: $2,700
Buyout before tax: $25,000
Taxes on buyout: $1,750
Total buyout cost: $26,750
Estimated equity (market − buyout): -$750

How to use this calculator

Enter residual value and remaining lease payments.
Enter buyout/purchase option fee and tax rate.
Enter current market value of the vehicle.
See total buyout cost and estimated equity (positive or negative).

Inputs explained

Residual value: Lease-end price specified in your contract.
Payments remaining: Number of payments left in the lease.
Monthly payment: Your current lease monthly payment amount.
Purchase option fee: Fee due when buying out the lease (if applicable).
Taxes (%): Sales/use tax rate on the buyout; depends on your state.
Market value: Estimated current vehicle value to gauge equity.

How it works

Buyout before tax = residual + purchase option fee + remaining payments.

Taxes apply to the buyout amount (varies by state). Total buyout = buyout pre-tax + taxes.

Equity = market value − total buyout.

Formula

Buyout pre-tax = Residual + Purchase fee + (Remaining payments × Monthly)
Taxes = Buyout pre-tax × Tax%
Total buyout = Buyout pre-tax + Taxes
Equity = Market value − Total buyout

When to use it

Deciding whether to buy out a lease vs returning or selling the vehicle.
Checking if there’s positive equity in the lease to capture by buying and reselling.
Budgeting the total cash needed to complete a buyout.

Tips & cautions

Verify fees and tax treatment with your lessor/state—some taxes apply to residual only, others to the full buyout.
Use realistic market value (private party vs trade-in differs).
If equity is positive, you may be able to buy and resell/trade to capture the difference.
Tax treatment varies by state and lender; this uses a simple percentage.
Does not include DMV/registration/title fees; add separately.
Assumes remaining payments are due; some buyouts waive them—adjust remaining payments accordingly.

Worked examples

Residual $22k, 6 payments @ $450, $300 fee, 7% tax, market $26k

Payments remaining = $2,700
Buyout pre-tax = $25,000
Taxes ≈ $1,750
Total buyout ≈ $26,750
Equity ≈ −$750

Residual $19k, 3 payments @ $400, $0 fee, 6% tax, market $24k

Payments remaining = $1,200
Buyout pre-tax = $20,200
Taxes ≈ $1,212
Total buyout ≈ $21,412
Equity ≈ $2,588

Deep dive

This lease buyout calculator adds remaining payments, residual value, fees, and taxes to show your total buyout cost, then compares it to market value to reveal equity.

Use it to decide whether to buy, return, or buy-and-sell your leased vehicle.

FAQs

Are remaining payments always due?: Some lessors may waive remaining payments in a buyout—check your contract and adjust the inputs.
How are taxes applied?: Tax rules vary. Some states tax residual only; others tax the full buyout. This uses one percentage for simplicity.
Trade-in vs private sale value?: Use the value relevant to your plan; private sale often yields more than trade-in.
Other fees?: Title/DMV fees are not included. Add them separately to your buyout budget.
Positive equity—now what?: If equity is positive, you might buy and resell or trade the vehicle to capture the difference, subject to your lease terms.

Related calculators

finance

Car Lease Payment Calculator

Estimate monthly lease payment, depreciation, finance charge, and total lease cost with money factor and fees.

finance

Car Payment Calculator

Enter vehicle price, down payment, trade value, tax rate, and APR to estimate your monthly car payment.

finance

Loan Payment Calculator

Calculate the monthly payment for any personal, auto, or student loan using the principal, APR, and term.

Estimates only. Taxes, fees, and contract terms vary. Verify with your lessor/DMV before executing a buyout.