Estimate the total cost to purchase your leased vehicle, including taxes and fees.
Subtotal (Residual + Payments + Fees):$0.00
Estimated Sales Tax:$0.00
Total Buyout Amount:$0.00
How a Lease Buyout Works
A car lease buyout allows you to purchase the vehicle you've been driving at the end of (or during) your lease term. The core of this calculation is the Residual Value, which is a fixed price set by the leasing company when you first signed the contract. It represents the estimated worth of the car at the end of the lease.
Key Components of the Calculation
Residual Value: Found in your original lease agreement. It is the pre-negotiated price you can buy the car for.
Remaining Payments: If you are buying the car early, you typically owe the remaining monthly payments. Note that some lenders may waive the "rent charge" portion for early buyouts, but most simple calculations include the full remaining sum.
Purchase Option Fee: Most leases include a "disposition fee" or "purchase option fee" ranging from $300 to $500.
Sales Tax: In most states, you must pay sales tax on the purchase price of the vehicle when you buy it out, even if you paid tax on the monthly lease payments.
Example Calculation
If your car's residual value is $20,000, you have 2 payments of $400 left, a $350 purchase fee, and your local tax rate is 8%:
Subtotal: $20,000 + ($400 × 2) + $350 = $21,150
Sales Tax: $21,150 × 0.08 = $1,692
Total Buyout: $21,150 + $1,692 = $22,842 (plus DMV fees)
Should You Buy Out Your Lease?
A lease buyout is usually a smart move if the car's current market value is higher than the residual value. Due to market fluctuations, many drivers find that their leased cars are worth $2,000 to $5,000 more than the buyout price, providing instant equity if they choose to purchase and keep the vehicle or sell it privately.
function calculateBuyout() {
var residualValue = parseFloat(document.getElementById('residualValue').value) || 0;
var remainingPayments = parseFloat(document.getElementById('remainingPayments').value) || 0;
var monthlyPayment = parseFloat(document.getElementById('monthlyPayment').value) || 0;
var purchaseFee = parseFloat(document.getElementById('purchaseFee').value) || 0;
var taxRate = parseFloat(document.getElementById('taxRate').value) || 0;
var miscFees = parseFloat(document.getElementById('miscFees').value) || 0;
if (residualValue <= 0) {
alert("Please enter a valid residual value.");
return;
}
// Step 1: Calculate total of remaining lease payments
var totalRemainingPayments = remainingPayments * monthlyPayment;
// Step 2: Calculate subtotal subject to tax (usually residual + remaining payments + purchase fee)
var taxableSubtotal = residualValue + totalRemainingPayments + purchaseFee;
// Step 3: Calculate tax
var calculatedTax = taxableSubtotal * (taxRate / 100);
// Step 4: Final Total including misc non-taxable fees (like DMV)
var finalTotal = taxableSubtotal + calculatedTax + miscFees;
// Display Results
document.getElementById('resSubtotal').innerText = "$" + (taxableSubtotal).toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resTax').innerText = "$" + (calculatedTax).toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resTotal').innerText = "$" + (finalTotal).toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resultArea').style.display = 'block';
}