# What will my lease buyout cost?

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.

- Page: https://www.acalculator.org/finance/lease-buyout-calculator
- JSON spec: https://www.acalculator.org/finance/lease-buyout-calculator.json
- Version: 432110f3df5b

## Default answer

Example with the default inputs (Purchase-option price $23,200.00, Payments left 0, Monthly lease payment $500.00, Purchase option fee $350.00, Sales tax rate 6%, Title and registration fees $200.00, Market value of the car $26,000.00, Cash you pay $0.00, Loan rate (APR) 7%, Loan length (months) 48): Buying the car costs $25,142.00 in all; financed, that is $602.06 a month.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| residual | Purchase-option price | The price in your lease to buy the car, usually the residual value. |
| left | Payments left | Monthly payments still due on the lease; 0 at the end of the lease. |
| payment | Monthly lease payment | Your monthly payment, with tax, for each payment left. |
| fee | Purchase option fee | The lessor’s fee to buy the car, if your lease has one. |
| tax | Sales tax rate | Sales tax on the purchase-option price. |
| other | Title and registration fees | State title, registration and other fees for the purchase. |
| value | Market value of the car | What the car would sell for now, for comparison. Leave empty to skip. |
| down | Cash you pay | The part of the buyout you pay in cash; the rest is financed. |
| rate | Loan rate (APR) | The yearly rate on a loan for the buyout. The monthly rate is this ÷ 12. |
| months | Loan length (months) | The number of monthly loan payments. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| total | Total buyout cost | Price + payments left + option fee + sales tax + other fees. |
| salesTax | Sales tax | Purchase-option price × tax rate. |
| price | Purchase-option price | The price in your lease to buy the car. |
| remaining | Payments left | Payments left × monthly payment. |
| fees | Fees | Purchase option fee + title and registration fees. |
| gap | Market value minus the buyout cost | Positive: the car is worth more than it costs you to buy. |
| loan | Amount financed | Total buyout cost − cash you pay. |
| loanPayment | Monthly loan payment | Amount financed × r ÷ (1 − (1 + r)^−n), r = APR ÷ 12. |
| loanInterest | Loan interest | Monthly loan payment × months − amount financed. |

## 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.

## Worked examples

1. residual = $23,200.00, left = 0, payment = $500.00, fee = $350.00, tax = 6%, other = $200.00, value = $26,000.00, down = $0.00, rate = 7%, months = 48 gives salesTax = $1,392.00, total = $25,142.00, gap = $858.00, loan = $25,142.00, loanPayment = $602.06. Source: 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).
2. residual = $18,000.00, left = 6, payment = $420.00, fee = $300.00, tax = 7%, other = $150.00, value = $21,000.00, down = $5,000.00, rate = 8%, months = 36 gives remaining = $2,520.00, salesTax = $1,260.00, total = $22,230.00, gap = -$1,230.00, loan = $17,230.00, loanPayment = $539.93. Source: 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).
3. residual = $12,000.00, left = 0, payment = $0.00, fee = $0.00, tax = 0%, other = $0.00, down = $0.00, rate = 0%, months = 24 gives total = $12,000.00, loanPayment = $500.00, loanInterest = $0.00.

## FAQ

### How is a lease buyout price worked out?

Start with the purchase-option price in your lease, usually the residual value. Add any payments left, the purchase option fee, sales tax and title fees. $23,200 + $350 + 6% tax of $1,392 + $200 is $25,142.

### Is buying out my lease a good deal?

Compare the buyout cost with what the car is worth. If the car is worth more than it costs you to buy, as when its value is above the residual, the buyout can make sense.

### Can I buy my car before the lease ends?

Often yes. This calculator adds the payments left in full, the most you would pay; your lessor’s early payoff quote may be lower because unearned rent charges can be removed. Ask for the quote.

### Is the purchase price always the residual value?

Not always. The Federal Reserve’s leasing guide notes that some leases set the purchase price at fair market value, which can be more or less than the residual. Use the price your lease states.

### Do I pay sales tax on a lease buyout?

Usually, on the purchase price, but states differ; some credit tax already paid. Set the rate to match your state, or 0.

### How do I finance a lease buyout?

With a car loan for the cost minus any cash you pay. The calculator shows the monthly payment and interest at the APR you type.

## 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)