Fair Market Value Lease Buyout Calculator

About this calculator

The fair market value lease buyout calculator estimates what it costs to purchase a leased vehicle or piece of equipment at the end of an FMV lease, where the buyout price isn't fixed in advance but is instead based on the asset's residual value — typically expressed as a percentage of its original value or capitalized cost — plus a purchase or transfer fee charged by the leasing company.

This differs from a “$1 buyout” or fixed-price capital lease: with FMV leases, common for commercial equipment and some vehicle leases, the lessor keeps ownership risk and the buyout reflects what the asset is actually estimated to be worth at lease end, which can run higher or lower than expected depending on market conditions and how the equipment held up. Business owners and fleet or equipment managers use this calculator to compare the buyout cost against the market price of an equivalent used asset before deciding whether to purchase, return, or re-lease at the lease's expiration.