{
  "id": "lease-buyout",
  "version": "432110f3df5b",
  "status": "published",
  "name": "Lease Buyout Calculator",
  "question": "What will my lease buyout cost?",
  "summary": "Works out the cost to buy your leased car, the purchase-option price, payments left, fees and sales tax, against its market value, and the monthly payment if you finance the buyout.",
  "category": "finance",
  "subcategory": "loans",
  "url": "https://www.acalculator.org/finance/lease-buyout-calculator",
  "markdown": "https://www.acalculator.org/finance/lease-buyout-calculator.md",
  "kind": "function",
  "method": "total = purchase-option price + payments left × payment + option fee + price × tax rate + other fees (exact); loan payment = (total − cash) × r ÷ (1 − (1 + r)^−n), r = APR ÷ 1200.",
  "assumptions": [
    "The purchase-option price is the fixed price in your lease; a lease that uses fair market value can cost more.",
    "Payments left are counted in full; a lessor’s early payoff quote may be lower.",
    "Sales tax is on the purchase-option price only; your state may tax a different amount, or credit tax already paid.",
    "Type the APR you are offered; no live rates."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "residual": {
        "title": "Purchase-option price",
        "description": "The price in your lease to buy the car, usually the residual value.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 1,
        "maximum": 10000000
      },
      "left": {
        "title": "Payments left",
        "description": "Monthly payments still due on the lease; 0 at the end of the lease.",
        "type": "integer",
        "minimum": 0,
        "maximum": 96
      },
      "payment": {
        "title": "Monthly lease payment",
        "description": "Your monthly payment, with tax, for each payment left.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000
      },
      "fee": {
        "title": "Purchase option fee",
        "description": "The lessor’s fee to buy the car, if your lease has one.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 100000
      },
      "tax": {
        "title": "Sales tax rate",
        "description": "Sales tax on the purchase-option price.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 25
      },
      "other": {
        "title": "Title and registration fees",
        "description": "State title, registration and other fees for the purchase.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 100000
      },
      "value": {
        "title": "Market value of the car",
        "description": "What the car would sell for now, for comparison. Leave empty to skip.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000
      },
      "down": {
        "title": "Cash you pay",
        "description": "The part of the buyout you pay in cash; the rest is financed.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000
      },
      "rate": {
        "title": "Loan rate (APR)",
        "description": "The yearly rate on a loan for the buyout. The monthly rate is this ÷ 12.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 40
      },
      "months": {
        "title": "Loan length (months)",
        "description": "The number of monthly loan payments.",
        "type": "integer",
        "minimum": 1,
        "maximum": 96
      }
    }
  },
  "outputs": {
    "total": {
      "label": "Total buyout cost",
      "description": "Price + payments left + option fee + sales tax + other fees.",
      "format": "money"
    },
    "salesTax": {
      "label": "Sales tax",
      "description": "Purchase-option price × tax rate.",
      "format": "money"
    },
    "price": {
      "label": "Purchase-option price",
      "description": "The price in your lease to buy the car.",
      "format": "money"
    },
    "remaining": {
      "label": "Payments left",
      "description": "Payments left × monthly payment.",
      "format": "money"
    },
    "fees": {
      "label": "Fees",
      "description": "Purchase option fee + title and registration fees.",
      "format": "money"
    },
    "gap": {
      "label": "Market value minus the buyout cost",
      "description": "Positive: the car is worth more than it costs you to buy.",
      "format": "money"
    },
    "loan": {
      "label": "Amount financed",
      "description": "Total buyout cost − cash you pay.",
      "format": "money"
    },
    "loanPayment": {
      "label": "Monthly loan payment",
      "description": "Amount financed × r ÷ (1 − (1 + r)^−n), r = APR ÷ 12.",
      "format": "money"
    },
    "loanInterest": {
      "label": "Loan interest",
      "description": "Monthly loan payment × months − amount financed.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "residual": 23200,
      "left": 0,
      "payment": 500,
      "fee": 350,
      "tax": 6,
      "other": 200,
      "value": 26000,
      "down": 0,
      "rate": 7,
      "months": 48
    },
    "outputs": {
      "total": 25142,
      "salesTax": 1392,
      "price": 23200,
      "remaining": 0,
      "fees": 550,
      "gap": 858,
      "loan": 25142,
      "loanPayment": 602.0564833031395,
      "loanInterest": 3756.7111985507
    },
    "text": "Buying the car costs $25,142.00 in all; financed, that is $602.06 a month."
  },
  "examples": [
    {
      "given": {
        "residual": 23200,
        "left": 0,
        "payment": 500,
        "fee": 350,
        "tax": 6,
        "other": 200,
        "value": 26000,
        "down": 0,
        "rate": 7,
        "months": 48
      },
      "expect": {
        "salesTax": 1392,
        "total": 25142,
        "gap": 858,
        "loan": 25142,
        "loanPayment": 602.0564833031374
      },
      "source": "hand calculation in content.mdx: 23,200 + 350 + 0.06 × 23,200 + 200 = 25,142; Board of Governors of the Federal Reserve System, Keys to Vehicle Leasing: Leasing vs. Buying, more information about the purchase-option price (the residual value, or a fair market value price), https://www.federalreserve.gov/pubs/leasing/resource/different/models_info10.htm (retrieved 2026-10-05)"
    },
    {
      "given": {
        "residual": 18000,
        "left": 6,
        "payment": 420,
        "fee": 300,
        "tax": 7,
        "other": 150,
        "value": 21000,
        "down": 5000,
        "rate": 8,
        "months": 36
      },
      "expect": {
        "remaining": 2520,
        "salesTax": 1260,
        "total": 22230,
        "gap": -1230,
        "loan": 17230,
        "loanPayment": 539.9255769004584
      },
      "source": "hand calculation in content.mdx: 18,000 + 6 × 420 + 300 + 1,260 + 150 = 22,230; Consumer Financial Protection Bureau, What should I know about leasing versus buying a car? https://www.consumerfinance.gov/ask-cfpb/what-should-i-know-about-leasing-versus-buying-a-car-en-815/ (retrieved 2026-10-05)"
    },
    {
      "given": {
        "residual": 12000,
        "left": 0,
        "payment": 0,
        "fee": 0,
        "tax": 0,
        "other": 0,
        "down": 0,
        "rate": 0,
        "months": 24
      },
      "expect": {
        "total": 12000,
        "loanPayment": 500,
        "loanInterest": 0
      },
      "source": "hand calculation in content.mdx: 12,000 ÷ 24 at 0%"
    }
  ],
  "sources": [
    "Board of Governors of the Federal Reserve System, Keys to Vehicle Leasing: more information about the purchase-option price. https://www.federalreserve.gov/pubs/leasing/resource/different/models_info10.htm (retrieved 2026-10-05)",
    "Consumer Financial Protection Bureau, What should I know about leasing versus buying a car? https://www.consumerfinance.gov/ask-cfpb/what-should-i-know-about-leasing-versus-buying-a-car-en-815/ (retrieved 2026-10-05)"
  ],
  "related": [
    "lease",
    "auto-lease",
    "lease-vs-buy",
    "auto-loan"
  ],
  "changelog": []
}