Car Lease Buyout Calculator
When a car lease ends, or sometimes before it ends, you may have the option to buy the vehicle instead of returning it. The cost of that buyout starts with the residual value, the price the leasing company set at signing for the car at lease end, then adds a purchase or disposition fee and applicable sales tax. This car lease buyout calculator combines those pieces: it adds the residual value and the purchase fee, applies your local sales tax rate to that amount, and returns the total buyout cost. Knowing this figure lets you compare buying the car against its current market value, since a buyout is a good deal only when the car is worth more than the price to buy it. The sales tax rate is left editable because it varies widely by location and on how your jurisdiction taxes a lease buyout. Every figure here is computed deterministically from your inputs, so the same terms always return the same total. Enter your residual value, fee, and tax rate below to estimate a buyout cost, compare it to the car's market value, or weigh keeping the car against leasing another, with a worked example that reconciles to the calculator defaults.
Buyout cost is the residual value plus the purchase fee, plus sales tax on that amount. An 18,000 dollar residual, a 350 dollar fee, and 7% tax give a 19,634.50 dollar total buyout cost.
Lease buyout formula
subtotal = residual value + purchase fee
sales tax = subtotal x (tax rate / 100)
total buyout cost = subtotal + sales tax
amounts in dollars, tax rate as a percentage
The residual value and purchase fee are added to form the taxable subtotal. Applying the sales tax rate to that subtotal and adding it back gives the total cash needed to buy out the lease.
Worked example
Take a lease with an 18,000 dollar residual value, a 350 dollar purchase fee, and a 7 percent sales tax rate.
- Subtotal: 18,000 + 350 = 18,350.00 dollars
- Sales tax: 18,350.00 x 0.07 = 1,284.50 dollars
- Total buyout cost: 18,350.00 + 1,284.50 = 19,634.50 dollars
The total buyout cost is 19,634.50 dollars, which matches the calculator's default inputs exactly. Compare this to the car's market value before deciding.
Car Lease Buyout Calculator: frequently asked questions
What is the residual value?
The residual value is the price the leasing company set at the start of the lease for the vehicle at lease end. It is written in your lease contract and is the base buyout price before fees and tax. Some leases also allow an early buyout at a different, higher amount.
How is sales tax applied to a buyout?
It varies by jurisdiction. Many places charge sales tax on the buyout price, while others tax differently because you paid tax on the lease payments. The rate and base differ by location, so enter the rate that applies where you register the vehicle and confirm the rules locally.
When is a lease buyout a good deal?
A buyout makes financial sense when the car is worth more in the market than the total buyout cost. Compare the total here to the vehicle's current market value, and account for its condition and mileage, before deciding to buy rather than return it.
What fees apply to a buyout?
A purchase option fee, sometimes called a disposition or buyout fee, is common and is set in the contract. Registration, title, and documentation fees may also apply. Enter the purchase fee here, and remember to budget separately for registration and title costs.
Can I finance a lease buyout?
Yes. Many lenders offer lease buyout loans, which finance the total buyout cost over a term, much like an auto loan. Compare the total cost of financing, including interest, against paying cash and against the car's market value before committing.
Official sources
- Auto leasing and consumer-finance guidance: US Consumer Financial Protection Bureau (CFPB). As at 25 June 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. This is general information, not financial, tax, legal or investment advice.