Calculate the total cost to purchase your vehicle at the end of the lease or early.
Found in your original lease contract.
Admin fee charged by lessor to buy the car.
Enter 0 if buying at lease end.
Enter 0 if the lease is over.
Your local vehicle sales tax rate.
Est. cost for title transfer and registration.
Estimated Buyout Breakdown
Base Residual Value:$0.00
Remaining Payments (Early Buyout):$0.00
Purchase Option Fee:$0.00
Estimated Sales Tax:$0.00
DMV & Title Fees:$0.00
Total Buyout Price:$0.00
How to Calculate Your Lease Buyout
Calculating the buyout on a lease involves determining the total amount required to purchase the vehicle from the leasing company. This figure is not just the residual value; it includes fees, taxes, and potentially remaining payments if you are buying the car before the lease term ends.
The Basic Formula:
Total Buyout = Residual Value + (Remaining Payments) + Purchase Option Fee + Sales Tax + DMV Fees
1. Determine the Residual Value
The Residual Value is the pre-determined value of the car at the end of the lease term. You can find this number in your original lease agreement. It is the amount the bank predicted the car would be worth after your lease term expires. This is the starting point of your buyout calculation.
2. Add Remaining Payments (Early Buyout Only)
If you are buying out your lease early (before the contract ends), you are typically responsible for the remaining monthly payments. Multiply your monthly payment by the number of months left on the contract. Note that some leasing companies may offer a slightly lower "Adjusted Lease Balance" that deducts unearned rent charges (interest), but estimating with the full remaining payments provides a safer, conservative budget figure.
3. Factor in the Purchase Option Fee
Most leasing contracts include a Purchase Option Fee. This is an administrative fee charged by the leasing company for processing the sale of the vehicle to you. This fee usually ranges from $300 to $500 but can vary by lender.
4. Calculate Sales Tax
Unlike a trade-in where you might get a tax credit, a lease buyout is treated as a vehicle purchase. You must pay sales tax on the buyout amount.
Note: Tax rules vary by state. In most states, you pay tax on the Residual Value plus the Purchase Option Fee.
5. DMV and Title Fees
Since the owner of the vehicle is changing from the leasing company (Lessor) to you (Lessee), you must pay for a new title and registration. These fees are paid to your state's DMV.
Is Buying Out Your Lease a Good Idea?
Once you calculate the total buyout price, compare it to the current market value of the car.
Good Deal: If your Calculated Buyout Price is lower than the current market value of the car (what you would pay to buy a similar used car from a dealer), buying out the lease is a smart financial move. You essentially have "equity" in the lease.
Bad Deal: If the Buyout Price is significantly higher than the market value, it usually makes more sense to return the car, as you would be overpaying for the vehicle.
Why use this calculator?
Leasing companies often provide a "Payoff Quote" that is valid for 10-30 days. However, for planning purposes, this calculator helps you estimate that cost beforehand so you can arrange financing or decide whether to sell the car to a third party versus returning it.
function calculateLeaseBuyout() {
// 1. Get Inputs using var
var residualValue = parseFloat(document.getElementById('residualValue').value);
var purchaseFee = parseFloat(document.getElementById('purchaseFee').value);
var monthlyPayment = parseFloat(document.getElementById('monthlyPayment').value);
var monthsRemaining = parseFloat(document.getElementById('monthsRemaining').value);
var taxRate = parseFloat(document.getElementById('taxRate').value);
var dmvFees = parseFloat(document.getElementById('dmvFees').value);
// 2. Input Validation (Handling Edge Cases)
if (isNaN(residualValue)) residualValue = 0;
if (isNaN(purchaseFee)) purchaseFee = 0;
if (isNaN(monthlyPayment)) monthlyPayment = 0;
if (isNaN(monthsRemaining)) monthsRemaining = 0;
if (isNaN(taxRate)) taxRate = 0;
if (isNaN(dmvFees)) dmvFees = 0;
// 3. Perform Calculations
// Calculate remaining obligation for early buyout
var remainingObligation = monthlyPayment * monthsRemaining;
// The taxable base usually includes the residual, the fee, and often the remaining payments in a total payoff scenario
// In many states, tax is applied to the total purchase price of the vehicle.
var taxableAmount = residualValue + remainingObligation + purchaseFee;
// Calculate Tax
var estimatedTax = taxableAmount * (taxRate / 100);
// Total
var totalBuyout = taxableAmount + estimatedTax + dmvFees;
// 4. Update UI with Currency Formatting
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2
});
document.getElementById('resResidual').innerText = formatter.format(residualValue);
document.getElementById('resRemaining').innerText = formatter.format(remainingObligation);
document.getElementById('resFee').innerText = formatter.format(purchaseFee);
document.getElementById('resTax').innerText = formatter.format(estimatedTax);
document.getElementById('resDmv').innerText = formatter.format(dmvFees);
document.getElementById('resTotal').innerText = formatter.format(totalBuyout);
// 5. Show Results
document.getElementById('resultContainer').classList.add('visible');
}