Lease Buyout Calculator

What Is a Lease Buyout?

A lease buyout means you purchase the car you have been leasing instead of returning it.

The buyout price is usually based on the residual value, which was set when you first signed the lease. That number does not change, even if the car’s market value goes up or down.

At lease end, you have two options:

• Buy the car for the residual value plus taxes and fees
• Return the car and walk away, sometimes with extra charges

A lease buyout calculator compares these two paths using real numbers.

Why a Lease Buyout Calculator Matters

Many drivers decide emotionally. They like the car, or they just want to be done with it.

That can be expensive.

A lease buyout calculator shows:

• Whether the car is worth more than the buyout price
• How much returning the car will really cost
• What your new monthly payment might look like
• If mileage penalties change the math

It replaces guesswork with clarity.

Key Inputs Explained (Plain English)

The calculator you shared is built around three main areas: lease data, return penalties, and buyout financing.

Here is what each input means and why it matters.

Lease Data

Residual Value

This is the price you must pay to buy the car.
It is written in your original lease contract.

Think of it as the “locked-in” price.

Current Market Value

This is what the car is worth today on the open market.

If market value is higher than the residual value, you may have positive equity.

Penalty Analysis (If You Return the Car)

Allowed Miles

The total miles included in your lease.

Current Miles

How many miles are actually on the car now.

Overage Cost (Per Mile)

What the leasing company charges for every mile over the limit.

This adds up fast. Even a few thousand extra miles can cost hundreds or thousands of dollars.

Disposition Fee

A fee charged just for returning the car.

Not all leases have it, but many do.

Buyout Financing (If You Buy)

New Loan Rate

The interest rate for financing the buyout.

A higher rate increases the true cost of buying.

Loan Term

How long you plan to finance the buyout.

Longer terms lower the monthly payment but increase total interest.

Sales Tax

Sales tax applied to the buyout price.

This is often overlooked but very real.

Dealer or DMV Fees

Paperwork, registration, and processing costs.

Small individually, meaningful together.

What the Calculator Actually Does

Behind the scenes, the calculator runs a few simple but powerful comparisons.

Total Cost to Buy

Residual value

• sales tax
• fees

This shows what buying really costs, not just the sticker price.

Estimated Cost to Return

Mileage penalties

• disposition fee

This is what “just giving it back” actually costs.

Estimated Net Equity

Market value
minus total cost to buy

• Positive number: the car is worth more than the buyout
• Negative number: the buyout is higher than the car’s value

This number drives the verdict.

New Monthly Payment

If you finance the buyout, the calculator estimates your new monthly payment based on rate and term.

This helps you compare it to your current lease payment.

Understanding the Verdict

The verdict section translates the math into plain advice.

Here is how to read it.

Strong Buy

You have clear positive equity.

Buying the car may let you:

• Keep it below market value
• Sell it for a profit
• Trade it in with leverage

Neutral

The numbers are close.

In this case:

• Buying avoids return fees
• Keeping a familiar car may still make sense

This is more about personal preference.

Buy to Avoid Penalties

Mileage or fees make returning expensive.

Even if equity is small, buying can save money by avoiding penalties.

Return It

The car is worth less than the buyout price.

Returning and moving on is usually the smarter move here.

Common Mistakes People Make

A lease buyout calculator helps avoid these common errors:

• Ignoring mileage penalties until it is too late
• Assuming residual value equals fair value
• Looking only at monthly payments
• Forgetting taxes and fees
• Buying emotionally instead of financially

The calculator forces all costs into one view.

When a Lease Buyout Makes the Most Sense

Buying your leased car often works well when:

• Used car prices are high
• Your car has low miles
• You maintained it well
• Interest rates are reasonable
• You plan to keep the car long-term

In these cases, a buyout can be one of the cheapest ways to own a car.