full payout lease. Definition. Lease arrangement in which a seller or owner (the lessor) of the leased asset or property recovers the full cost (original cost plus profit margin, interest, and other charges) of the item. Lease period (term) for such leases is usually equal to the economic life of the asset. A capital lease is a full payout lease whereas an operating lease is not. http://www.businessdictionary.com/definition/full-payout-lease.html.