Lease Buyout Calculator: Cost, Payment and Equity

How the lease buyout calculation works

• Taxable amount: the selected tax base, multiplied by the entered sales/use tax rate.
• All-in cash buyout cost: lessor quote + separately owed lease payments + purchase-option fee + tax + title/registration + other closing fees.
• Amount financed: all-in cost − cash at closing − trade/equity credit + financed loan fee.
• Monthly payment: the standard fixed-rate amortization formula. At 0% APR, principal is divided by the number of payments.
• Market equity at buyout: current market value − all-in cash buyout cost.
• Buyout advantage before interest: market value + avoided return charges − all-in cash buyout cost.

Example

With a 24,000 buyout quote, 350 purchase-option fee, 7.5% tax on the quote plus that fee, 575 in title and other fees, 3,000 cash, a 250 financed loan fee, 6.5% APR for 60 months, a 28,000 market value and 1,800 of expected return charges, the calculator separates transaction cost, loan cost and vehicle value instead of judging the decision from the monthly payment alone.

End-of-lease versus early buyout

At lease end, the contractual purchase-option price may be the starting point. For an early buyout, request a dated payoff quote from the lessor. Do not add remaining payments again when the quote already includes them. Some lessors restrict third-party buyouts or use a different dealer payoff amount.

Important limits

This is an educational estimate, not a lender quote, tax determination or legal advice. Taxes, taxable fees, title charges, payoff methods, dealer charges and purchase-option rules vary by contract and jurisdiction. Market value is uncertain, and repair needs, warranty, insurance, depreciation and opportunity cost are not forecast automatically. Confirm the lessor quote, tax treatment and loan disclosure before acting.