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Leasing residual value calculator

Enter the asset cost and the residual value percentage the lessor sets. The calculator works out the amount to pay at the end of the term to buy out the asset.

Set by the lessor — depends on the asset type and lease term, usually lower for longer terms

Result

Residual (buyout) value

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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.

How it is calculated

Residual value = asset cost × residual value percent ÷ 100. This is the amount the lessee pays separately at the end of the term to take ownership of the asset — it's not part of the monthly lease payments, which only partly fund it (see the separate leasing payment calculator).

The higher the set residual value percentage, the lower the monthly lease payment, but the more must be paid in one lump sum at the end — the lessor effectively defers part of the asset's cost to the future instead of spreading it across the whole term.

The residual value percentage is set by a specific lessor, not a computed figure: it depends on the asset's expected market value at the end of the term, its type (vehicles usually lose value faster than real estate), and the company's policy.

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