Lease Buyout Calculator

Find out what it really costs to buy your leased car and whether it is worth more than the buyout.

Lease equity—

Remaining payments—
Payoff before tax—
Sales tax (if you keep it)—
Total cost to buy and keep—

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Estimates for education only — not financial, tax or legal advice. Lenders may calculate taxes and fees differently by state or province. Always check your contract.

How a car lease buyout is calculated

At the end of a lease you can usually buy the car for the residual value written in your contract, plus a purchase option fee, government fees and sales tax. If you buy before the lease ends, the lender also wants the remaining payments (or the remaining depreciation, depending on the lender).

Payoff = residual value + remaining payments + purchase fee + other fees Cost to keep = payoff + sales tax Lease equity = market value − payoff

What is lease equity?

Lease equity is the difference between what the car is worth today and what it costs to buy it out. When used-car prices are high, many leased cars are worth more than their residual. That gap is real money: you can buy the car below market, or sometimes sell it to a dealer that pays off the lease and gives you the difference. This page works as a lease equity calculator too.

If the number is negative, the car is worth less than the buyout. In that case returning it at lease end is usually the cheaper choice — the lender takes the loss, not you (apart from any excess mileage or wear charges).

Early lease buyout: a note on accuracy

For an early buyout this calculator adds all remaining payments. Many lenders instead charge the remaining depreciation and skip the unearned rent charge, so your real payoff quote may be a bit lower. Always ask the leasing company for an official payoff letter before you decide.

Before you buy out your lease

Get two or three appraisals to estimate market value honestly.
Ask whether your lender allows third-party buyouts (selling to another dealer). Some do not.
Compare loan rates if you need to finance the buyout.
Check what the excess mileage charge would be if you return it — use it in your decision.

Frequently asked questions

How do I calculate my lease buyout?

Add the residual value from your contract, any remaining payments, the purchase option fee and other fees. If you keep the car, add sales tax on top.

Is it worth buying out my lease?

It is usually worth it when the car's market value is higher than the buyout price (positive equity), or when you like the car and it would cost more to buy a similar one.

Do you pay sales tax on a lease buyout?

In most US states you pay sales tax on the buyout price when you keep the car. Rules vary by state and province, so check locally.

Can I negotiate the lease buyout price?

The residual is fixed in the contract, so it is rarely negotiable with the leasing company. Fees added by a dealer can sometimes be negotiated.

What does negative equity on a lease mean?

The car is worth less than the buyout amount. Returning the car at lease end usually avoids that loss.

Can I sell my leased car to get my equity?

Often yes, by selling it to a dealer who pays off the lease. Some lenders restrict third-party buyouts, so ask your leasing company first.