Lease Buyout Calculator

Q: How do I calculate my car lease buyout?

Add the residual value from your contract to any remaining monthly payments and the purchase-option fee, then subtract any credits or rebates. For example, $18,500 residual + (6 × $395) + $350 fee = $21,220 before tax.

Q: What is the residual value on a lease?

The residual value is the vehicle's predicted worth at lease end, set when you signed the contract. It is the core of any buyout price. You can find it on your lease agreement, usually expressed as a dollar amount or a percentage of the original MSRP.

Q: Does a lease buyout include sales tax?

Usually no. This calculator gives the pre-tax buyout. Most states charge sales tax on the purchase price, and you may also owe title, registration and documentation fees. Add your local tax rate to the buyout figure to estimate the total out-the-door cost.

Q: Is it cheaper to buy out my lease early or at the end?

An end-of-lease buyout is typically just the residual value plus the purchase-option fee. An early buyout adds your remaining payments (and sometimes early-termination charges), so it usually costs more unless the car's market value has risen above the contract residual.

Q: What is the purchase-option fee?

The purchase-option fee (sometimes called a buyout or disposition fee) is a fixed administrative charge the leasing company adds when you choose to buy the vehicle instead of returning it. It typically ranges from $300 to $600 and is listed in your lease contract.

Estimate the cost to buy out your car lease. Enter the residual value, monthly payment, months remaining and fees for an instant pre-tax buyout figure.

Updated 2026-06-14 · Free · No sign-up · Runs privately in your browser

Residual value ($) Monthly payment ($) Months remaining Purchase-option fee ($) Credits / rebates ($)

Remaining payments

Estimated buyout

Before tax

Add local sales tax

Show the formula & steps

How the Lease Buyout Calculator Works

A lease buyout is when you purchase the vehicle you have been leasing instead of returning it at the end of the term. This calculator estimates what that purchase will cost by combining the four figures that appear on every lease contract: the residual value, your monthly payment, the months remaining, and the purchase-option fee — minus any credits or rebates the dealer or manufacturer offers.

Enter your numbers and the tool instantly shows your remaining payment obligation and the total pre-tax buyout price.

The Formula

Buyout = residual value + (monthly payment × months remaining) + purchase-option fee − credits

Residual value — the car’s contracted worth at lease end (the anchor of the price).
Monthly payment × months remaining — the payments you still owe before the lease ends.
Purchase-option fee — the leasing company’s administrative charge for buying out.
Credits — loyalty rebates, manufacturer incentives or equity that reduce the price.

If you buy out exactly at lease end, the “months remaining” term is zero, so the formula simplifies to residual + fee − credits.

Worked Example

Say your lease has a residual value of $18,500, a $395 monthly payment, 6 months remaining, a $350 purchase-option fee, and no credits:

Remaining payments = $395 × 6 = $2,370
Buyout = $18,500 + $2,370 + $350 − $0 = $21,220 (before tax)

Add your state’s sales tax plus title and registration to get the true out-the-door cost.

Should You Buy Out Your Lease?

The buyout makes financial sense when the car’s current market value is higher than the contract residual — a common situation when used-car prices rise. In that case you effectively buy at a discount and capture the difference as equity.

Scenario	When buying out is smart
Market value > residual	Yes — you gain instant equity
Car is in great shape, low miles	Yes — avoid wear-and-tear and excess-mileage charges
Market value < residual	Usually no — return it and lease/buy something else
You’re over your mileage cap	Often yes — buyout avoids per-mile overage fees

Always compare the buyout price to the vehicle’s wholesale and retail value (using a guide like KBB or Edmunds) before deciding. If you need financing, factor in the loan’s interest rate and term, since a buyout loan can change the total cost considerably.

Frequently asked questions

How do I calculate my car lease buyout?+

Add the residual value from your contract to any remaining monthly payments and the purchase-option fee, then subtract any credits or rebates. For example, $18,500 residual + (6 × $395) + $350 fee = $21,220 before tax.

What is the residual value on a lease?+

The residual value is the vehicle's predicted worth at lease end, set when you signed the contract. It is the core of any buyout price. You can find it on your lease agreement, usually expressed as a dollar amount or a percentage of the original MSRP.

Does a lease buyout include sales tax?+

Usually no. This calculator gives the pre-tax buyout. Most states charge sales tax on the purchase price, and you may also owe title, registration and documentation fees. Add your local tax rate to the buyout figure to estimate the total out-the-door cost.

Is it cheaper to buy out my lease early or at the end?+

An end-of-lease buyout is typically just the residual value plus the purchase-option fee. An early buyout adds your remaining payments (and sometimes early-termination charges), so it usually costs more unless the car's market value has risen above the contract residual.

What is the purchase-option fee?+

The purchase-option fee (sometimes called a buyout or disposition fee) is a fixed administrative charge the leasing company adds when you choose to buy the vehicle instead of returning it. It typically ranges from $300 to $600 and is listed in your lease contract.