how is residual value calculated 
to determine the residual value of an asset you must consider the estimated amount that the asset s owner would earn by selling the asset minus any costs that might be incurred during the disposal residual value is often used when referring to a leased car the residual value of a car is the estimated value of the car at the end of the lease the residual value of a car is calculated by the bank or financial institution it is typically calculated as a percentage of the manufacturer s suggested retail price msrp 