Equipment Lease Buyout Calculator: $1 vs. FMV
Compare the true total cost of a $1 buyout against a fair-market-value (FMV) buyout. Don't get surprised by the number at lease end.
Reviewing the agreement itself? Start with our Equipment Finance Agreement guide.
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How to use this equipment buyout calculator
- Enter your monthly payment and the lease term in months.
- Enter the original equipment cost and your estimated FMV buyout (as a % of that cost).
- Compare the total cost of the $1 buyout path against the FMV buyout path, and review the difference.
For the most reliable estimate, ask the lessor how the end-of-term buyout is defined and request a sample FMV quote in writing.
$1 vs. FMV buyout checklist
- Buyout type: Is it a $1 (capital) buyout, a fixed-% buyout, or a true FMV (operating) buyout?
- FMV ceiling: Is there a cap on the FMV, or can the lessor set it at any market value?
- Notice windows: When must you give notice to buy, return, or renew—and what happens if you miss it?
- Auto-renewal / evergreen: Does the lease roll over into extra payments if you don't act in time?
- Return condition: What shape and shipping terms are required if you return the equipment?
See how these terms are worded in real agreements in our Clause Library.
Equipment buyout FAQs
BizLeaseCheck provides informational analysis and is not legal or tax advice.