Lease-End Buyout Comparison CalculatorFree online financial calculator — instant results, no sign-up
Compare the total lease buyout cost with an equivalent vehicle's market value.
Estimates only, based on the inputs and assumptions shown. This is not financial, investment, tax, or legal advice. Prices, rates and local rules may change; crypto scenarios do not predict returns. Confirm important decisions with a qualified professional.
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About the Lease-End Buyout Comparison Calculator
The Lease-End Buyout Comparison Calculator compares the cost of purchasing your leased vehicle at lease end with the market value of an equivalent vehicle. It adds the residual buyout price, purchase option fee, and sales tax on both amounts, then shows how far that total falls below or above the market value you enter.
- Residual buyout price ($)
- The lease-end purchase price specified in your lease agreement, in dollars, with a default of $20,000.
- Purchase option fee ($)
- The fee charged to exercise your lease purchase option, in dollars, with a default of $350.
- Buyout sales tax (%)
- The sales tax rate applied to the combined buyout price and purchase option fee, entered as a percentage, with a default of 7%.
- Equivalent market value ($)
- The estimated current value of a comparable vehicle with similar mileage, condition, and equipment, in dollars, with a default of $23,000.
Formula and method
C = (R + F) × (1 + t / 100); D = V − C. With the default inputs: C = ($20,000 + $350) × (1 + 7 / 100) = $21,774.50; D = $23,000 − $21,774.50 = $1,225.50.
- RResidual buyout price in dollars.
- FPurchase option fee in dollars.
- tBuyout sales tax rate entered as a percentage.
- VEquivalent vehicle market value in dollars.
- CTotal buyout cost, including sales tax on the price and fee, in dollars.
- DMarket value minus total buyout cost, in dollars.
Add the residual buyout price and purchase option fee to establish the taxable subtotal. Multiply that subtotal by the sales tax percentage divided by 100, then add the tax to obtain the total buyout cost. Subtract this total from the equivalent market value. With the defaults, the subtotal is $20,350, tax is $1,424.50, total buyout cost is $21,774.50, and market value less buyout cost is $1,225.50.
Worked example
These are the calculator's starting values and the results it actually produces for them.
Inputs
- Residual buyout price20000 $
- Purchase option fee350 $
- Buyout sales tax7 %
- Equivalent market value23000 $
Results
- Buyout cost including tax on price and fee$21,774.50
- Market value less buyout cost$1,225.50
How to use the Lease-End Buyout Comparison Calculator
- 1Find the lease-end residual buyout price in your lease agreement or confirm it with your leasing company, then enter it in dollars.
- 2Enter the purchase option fee charged when you buy the leased vehicle.
- 3Enter the applicable buyout sales tax percentage and verify whether your jurisdiction taxes both the price and the fee.
- 4Estimate the market value of an equivalent vehicle using comparable mileage, condition, trim, and equipment, then enter that value in dollars.
- 5Review the total buyout cost and the market-value difference, accounting separately for costs this calculator does not include.
Reading your result
The buyout cost including tax on price and fee row shows the estimated amount needed to purchase the leased vehicle under the calculator's assumptions: $21,774.50 with the defaults. The market value less buyout cost row shows the entered market value minus that total: $1,225.50 with the defaults, meaning the calculated buyout cost is below the entered market value by that amount. A positive difference favors the buyout on this price comparison alone; a negative difference means the buyout costs more than the entered market value, and zero means the two are equal.
Limitations
The calculator assumes sales tax applies to both the residual buyout price and the purchase option fee; actual tax treatment, credits, and exemptions vary by jurisdiction. It excludes financing interest, title and registration charges, other transaction fees, repairs, and ongoing ownership costs. It does not compare buying with returning the lease after accounting for mileage, wear, or disposition charges. Market value is an estimate rather than a guaranteed sale price, and may not include the taxes and fees required to purchase a comparable vehicle. This is a lease-end comparison, not an early-buyout payoff calculation.
Common questions
Why is sales tax applied to the purchase option fee as well as the residual price?+
That is the calculator's tax assumption: it taxes the combined $20,000 price and $350 fee at 7%, producing $1,424.50 in tax. Confirm the taxable amount with your leasing company or local tax authority; if the fee is not taxable, this model will not exactly match your quote.
Does the $1,225.50 difference mean I can make that much by immediately reselling the vehicle?+
No. It means only that the entered $23,000 market value exceeds the calculated $21,774.50 buyout cost by $1,225.50. Your actual sale proceeds may differ, and additional purchase or resale costs could reduce or eliminate that difference.
Which market value should I use for the equivalent vehicle?+
Use a value that matches your intended comparison and reflects similar mileage, condition, trim, and equipment. Retail pricing helps compare the buyout with buying a comparable vehicle, while a trade-in or purchase offer is more relevant if you plan to sell after buying out the lease.
Does this calculator include charges I might avoid by buying rather than returning my lease?+
No. Excess-mileage, wear, and disposition charges are not inputs. Check your lease and leasing company's policies to determine which return charges would actually be avoided, then consider them separately when making your decision.
Does the calculator save my information?+
Calculations run in your browser. While signed in, inputs and results are automatically recorded in account history; saving a result creates a separate saved record.
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Results are estimates for informational purposes and are not financial, medical or legal advice.