Lemon Law Buyback Calculator

By Andrea

This free tool gives you a rough, ballpark estimate of what a lemon law buyback figure might look like using a common approach: the purchase price plus certain incidental costs, minus a mileage offset for the miles you drove before the first repair attempt, minus any loan payoff. It runs entirely in your browser. Nothing you type is saved or sent anywhere.

How this estimate works

Many states use a similar idea when they calculate a repurchase. You start with what you paid for the car and certain out-of-pocket costs, then subtract a "mileage offset" for the use you got before the vehicle first went in for the defect, and finally subtract anything still owed on a loan so the payoff can be handled. The formula this tool uses is:

The "state mileage figure" is the denominator many buyback formulas use to spread the vehicle's expected life across mileage. This tool uses 120,000 as a general default. Some states are known to use 120,000, but the exact number, the way the offset is applied, and what counts as an incidental cost all vary by state and can change. Treat the result as a starting point for a conversation, not a number you are owed.

The Core Formula: Purchase Price Minus a Mileage Offset

Most state lemon laws use the same basic structure: the manufacturer refunds your full out-of-pocket costs minus a mileage deduction for miles you drove before the defect first showed up. That deduction is called the mileage offset (sometimes "usage fee").

The typical formula looks like this: Refund = (Purchase Price + Taxes + Fees) − Mileage Offset. The mileage offset is usually calculated as: (Miles Driven Before First Repair Attempt ÷ Expected Vehicle Life) × Purchase Price. "Expected vehicle life" is a fixed number set by state law — commonly somewhere around 100,000 to 120,000 miles, though your state may use a different figure. Always confirm the exact number your state uses.

What counts as the "purchase price" also varies. Many states include sales tax, registration fees, and dealer-added charges you paid at signing. Some exclude after-market add-ons. Pull out your purchase contract and identify every line item before you estimate.

What Gets Added Back In

Beyond the base refund, most lemon law statutes require the manufacturer to reimburse certain out-of-pocket costs you incurred because of the defect. Common reimbursable items include:

• Repair-related costs you paid (towing, rental car, diagnostic fees) that the dealer did not cover
• Finance charges and interest paid up to the date of the repurchase
• Incidental costs directly caused by the defect — keep receipts for everything
• Down payment and monthly payments already made (these are typically rolled into the full purchase-price refund rather than added separately — confirm with your state's formula)

If you are still making loan payments, the manufacturer typically pays off your lender directly and refunds whatever you already paid. If you leased, the calculation works differently — the lessor (finance company) and the lessee each receive a portion, and your out-of-pocket refund reflects only what you actually paid, not the full vehicle price.

Texas Lemon Law Buyback Calculation: State-Specific Notes

Texas runs its lemon law through the Texas Department of Motor Vehicles/TxDMV, not the courts. The state uses its own administrative formula — the mileage-offset divisor Texas applies may differ from other states. Texas also has its own repair-attempt and time-out-of-service thresholds that affect when the mileage clock starts.

For Texas: the odometer reading at your first repair attempt is critical — a higher number means a larger mileage offset and a smaller refund. Document that first visit with a dated repair order. Verify the current formula and eligible cost items at the TxDMV website or with a Texas-licensed attorney, as TxDMV rules can be updated.