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By subtracting the residual value (or buyout price) from the current market value you can determine how much equity you have in your leased car. If the number is positive, it might be a good idea to purchase your leased car and either keep it or sell it.

Get the free Present Value Calculator to follow along: Step 1: Create your table with headers. ... Step 2: Enter amounts in the Period and Cash columns. ... Step 3: Insert the PV function. ... Step 4: Enter the Rate, Nper Pmt, and Fv. ... Step 5: Sum the Present Value column.

For example, your car's residual value is $20,000, and you owe six more payments of $500. Your buyout price would be about $23,000. If your state taxes auto sales ? most do ? add that amount to your total. Your lender may charge additional fees, such as a purchase option fee that is levied if you decide to buy the car.

Monthly Payment = Depreciation + Rent Charge + Taxes As we mentioned earlier, it's important to know all the factors that contribute toward calculating your lease, including your Residual, Money Factor, and Net Capitalized Cost. All of these values can change from vehicle to vehicle, and again from year to year.

Finance Fee = ( Net Cap Cost + Residual ) × Money Factor It's simply a way of calculating the average amount financed without using complicated constant-yield annuity business formulas (for more details, click here). This is the method used by all lease companies and dealers.

Here are some simple tips to follow to calculate your car lease buyout amount: Determine the residual value of the car. ... Look up the car's market value. ... Compare the car's residual value to its market value. ... Calculate additional taxes and fees.

Look for a ?buyout amount? or ?payoff amount? that will be listed on your monthly leasing statement. This buyout amount is calculated by adding up the residual value of your vehicle at the beginning of the lease, the total remaining payments, and possibly a Toyota lease buyout fee (depending on the leasing company).