Should You Buy Out Your Lease? Find Out in 60 Seconds.
Enter your lease details and today's market value for your car. LeaseEquityCalculator tells you whether buying it out is a smart move — and how much equity you'd walk away with either way. No signup required.
How It Works
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Enter your buyout price and remaining payments.
Found on your lease agreement or by calling your leasing company.
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Enter what your car is worth today.
Use Kelley Blue Book, Edmunds, or CarGurus to estimate it.
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See your equity position and our recommendation.
Instant results — no waiting, no email required.
Why It Matters
Your lease buyout price was set months or years ago. Your car's actual market value today might be higher or lower, and that gap is either money in your pocket or a bad deal waiting to happen. LeaseEquityCalculator compares the two so you're not guessing.
The Lease Buyout Calculator
Our free calculator compares your lease buyout price against your vehicle's current market value to show whether buying out your lease makes financial sense. Enter your buyout price (residual value plus any purchase option fee), your car's estimated market value from Kelley Blue Book or Edmunds, your state's sales tax rate, and optional financing details to see your full equity picture.
The formula:
Lease Equity = Current Market Value − Total Buyout Cost (including taxes and fees)
A positive result means your car is worth more than your buyout price — you have equity you can capture by buying the car. A negative result means you'd be paying more than the car is worth, and returning it may be the better move. The calculator also estimates monthly financing payments if you enter an interest rate and loan term.
How to Use This Tool
You don't need a finance background to figure out where you stand on your lease:
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Find your buyout price.
Listed on your lease agreement under "purchase option price" or "residual value." Or call your leasing company for a payoff quote.
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Estimate your car's market value.
Use Kelley Blue Book, Edmunds, or CarGurus. Be honest about mileage and condition.
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Enter both numbers into the calculator.
The tool shows you exactly where that leaves you.
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Read your result.
A positive number means real equity. A negative number means walking away is usually better.
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Check your decision deadline.
Most leasing companies require notice 30–90 days before lease-end.
Key Terms Explained
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Residual Value
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The estimated value of your leased vehicle at the end of the lease term, set when you signed the lease. Your buyout price is typically based on this number. It doesn't change regardless of what happens to the used car market.
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Lease Equity
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The difference between your vehicle's current market value and the total cost to buy it out. Positive equity means the car is worth more than the buyout. Negative equity means the opposite.
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Buyout Price
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The amount your leasing company charges to purchase the vehicle. Usually the residual value from your contract, sometimes plus a purchase option fee.
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Market Value
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What your vehicle would sell for on the open market today. Estimate using Kelley Blue Book, Edmunds, NADA Guides, or comparable listings on CarGurus or Autotrader.
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Money Factor
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The leasing world's version of an interest rate, shown as a small decimal (e.g., 0.00125). Multiply by 2,400 to convert to an approximate APR (3%).
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Disposition Fee
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A charge ($300–$500) some leasing companies apply when you return the car instead of buying it out. Worth factoring into your buyout decision.
When Should You Buy Out Your Lease?
A lease buyout typically makes financial sense when:
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The car is worth more than the buyout price (positive equity).
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You love the car and plan to keep it long-term.
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You've exceeded your mileage limit — buying eliminates per-mile overage penalties.
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The used car market is strong and your residual value is below current market value.
Frequently Asked Questions
Is it worth buying out my lease?
It's usually worth it if your car's current market value is higher than your buyout price. That difference is equity you can capture. If the market value is lower, you'd be paying more than the car is worth today.
How do I find my lease buyout price?
It's listed on your original lease agreement, usually called "residual value" or "purchase option price." You can also call your leasing company for the payoff amount.
What's the difference between buyout price and market value?
Buyout price is fixed by your lease contract. Market value is what the car would actually sell for today, based on mileage, condition, and demand. LeaseEquityCalculator compares the two.
What is a car lease buyout?
A car lease buyout is when you purchase your leased vehicle from the leasing company, either at the end of the lease term or during it. You pay the predetermined buyout price, typically the residual value set in your lease contract, plus applicable taxes and fees.
Can I finance a lease buyout?
Yes. You can finance a lease buyout through a bank, credit union, or sometimes through the dealership. Shop around for the best interest rate, as rates for lease buyouts can vary.
Do I have to pay sales tax on a lease buyout?
Yes, in most states you'll pay sales tax on the buyout price when purchasing your leased vehicle. The tax rate varies by state and locality.
What happens if I exceed my mileage limit?
If you return the car, you'll pay an overage charge for each mile beyond your limit, typically $0.15 to $0.30 per mile. Buying out the lease eliminates mileage penalties entirely.
Is it better to buy out a lease or get a new car?
Buying out your lease avoids the steep depreciation hit of a brand-new car, and you already know the vehicle's history. However, a new car comes with a full warranty and the latest features. If your lease has positive equity, buying it out is often the more financially efficient choice.
Lease Buyout Resources
Our blog covers lease buyout topics in depth:
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View all articles
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What Is Lease Equity and How Is It Calculated?
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Lease Residual Value Explained: How Automakers Set It
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Lease Buyout vs. Financing a New Car: A Full Cost Comparison
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Should You Buy Out Your Lease? 7 Signs You Have Positive Equity
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How to Know If Your Car Is Worth More Than Your Lease Payoff
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Lease-End Options Explained: Buyout, Return, or Trade-In
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Third-Party Lease Buyout Loans: How They Work
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Sales Tax on Lease Buyouts: What You'll Owe
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Selling Your Leased Car for a Profit: A Step-by-Step Guide
LeaseEquityCalculator provides estimates for informational and educational purposes only. This is not financial advice. Consult qualified professionals before making financial decisions.
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