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Vehicle Residual Value Calculator
The residual value on your lease drives your monthly payment and your buyout cost. This calculator helps you understand your vehicle's residual value and what a buyout would actually cost.
Tell us about it
in $ USD$20,000.00
$
$390.00
$
15
$300.00
$
7%
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Estimated Buyout
$27,980.50
In plain English
The lease has a $20,000.00 residual, $390.00 a month for 15 months, plus a $300.00 purchase-option fee. At 7% sales tax, the early buyout comes to $27,980.50.
How we got there+
| Base buyout (pre-tax) | $26,150.00 |
| Sales tax | 7% |
| Final buyout | $27,980.50 |
Estimates only, not legal or financial advice. Double-check figures with a qualified professional.
How we got there
— Vehicle Residual Value CalculatorMethodology reviewed: August 17, 2026 · Source: Federal Reserve — Vehicle Leasing: Buying the Vehicle at Lease-End
Frequently asked questions
Q.What is residual value?▾
It is the estimated value of the vehicle at the end of the lease term. The leasing company sets it when you sign the lease.
Q.How does residual value affect my monthly payment?▾
A higher residual means the car holds more value, so you are paying for less depreciation. That usually means lower monthly payments.
Q.Can I negotiate the residual value?▾
No, it is set by the leasing company and is not negotiable. But you can compare leases from different companies to find a better residual.
Q.What if the car is worth more than the residual at lease end?▾
That is a good situation. You can buy the car at the residual price and keep it or sell it for a profit.
Q.What if the car is worth less than the residual?▾
You can return the car and let the leasing company take the loss. You are not required to buy it unless you want to.