Buyout Price Calculator

Formula

The formula to calculate the Buyout Price (BP) is:

\[ BP = RV + RP \]

Where:

$BP$ is the Buyout Price (\$)
$RV$ is the Residual Value (\$)
$RP$ is the Total Remaining Payments (\$)

What is Buyout Price?

The Buyout Price is the total amount required to purchase an item, such as a leased vehicle, at the end of the lease term. It is calculated by summing the residual value of the item (the expected value of the item at the end of the lease term) and the total remaining payments owed on the lease.

Example Calculation

Let's assume the following values:

Residual Value (RV) = \$10,000
Total Remaining Payments (RP) = \$5,000

Using the formula to calculate the Buyout Price (BP):

\[ BP = RV + RP = 10000 + 5000 = 15000 \]

The Buyout Price (BP) is \$15,000.