Lease buyout calculator.

Worked example

Your contract residual is $22,000, with a $300 purchase fee and 8% tax on the buyout: ($22,000 + $300) x 1.08 = $24,084.00 (tax $1,784.00). The car is worth $24,500 on the market, so you would hold $416.00 of value above what you pay. Handing it back would cost a $395 disposition fee and $600 of excess wear, $995.00 in total. Buying is ahead by $416.00 + $995.00 = $1,411.00. Financing the whole buyout at 7% for 48 months would be $576.72 a month with $3,598.63 of interest.

How it works

Buyout = (residual + purchase fee) x (1 + tax rate). Equity = market value - buyout. Cost of returning = disposition fee + excess wear + excess mileage. Advantage of buying = equity + cost of returning, because buying avoids those charges. If you enter an APR and term, the buyout minus your cash is amortised as a fixed-rate loan.

The FTC explains that at the end of a lease you have to return the car unless the lease agreement lets you buy it, that you are responsible for excess wear and damage and missing equipment, and that exceeding the mileage limit means an additional fee. Your own contract controls which of those charges apply and how large they are, so every charge here is a number you type.

Sources and basis (opened 2026-10-08): Federal Trade Commission, Consumer Advice, “Financing or Leasing a Car”. Statements used: return unless the lease lets you buy; responsibility for excess wear; fee for exceeding the mileage limit.

Not financial advice. This is a planning estimate from the numbers you type. Taxes, fees, insurance and lender or lessor terms vary; confirm every figure against your contract or written quote.

FAQ

What is a lease buyout?

It is the price to buy the car at the end of the lease, normally the residual value in the contract plus any purchase option fee and applicable tax. The FTC notes you must return the car unless the lease agreement lets you buy it.

Is it worth buying out my lease?

It is when the car is worth more than the buyout, or when returning it would cost a lot in fees, wear and mileage charges. The tool shows both gaps for your numbers. It cannot tell you about the car's condition or your needs.

Can I buy my leased car early?

That depends on your lease. Check the early purchase terms in your contract. Early buyouts are not modelled here; enter the figure your lessor gives you as the buyout value.

Do I pay sales tax on a lease buyout?

That depends on where you live and how the lease was taxed. Enter your rate, or 0 if no tax applies. The tool does not look rates up.

How do I find the market value?

Check several listings and valuation guides for the same year, trim and mileage, and be conservative. The result is only as good as the value you enter.