diff --git a/src/Illuminate/Database/Query/Builder.php b/src/Illuminate/Database/Query/Builder.php
index a2b9b07c5b02..3585c5811b2b 100755
--- a/src/Illuminate/Database/Query/Builder.php
+++ b/src/Illuminate/Database/Query/Builder.php
@@ -3749,12 +3749,18 @@ public function updateFrom(array $values)
      * Insert or update a record matching the attributes, and fill it with values.
      *
      * @param  array  $attributes
-     * @param  array  $values
+     * @param  array|callable  $values
      * @return bool
      */
-    public function updateOrInsert(array $attributes, array $values = [])
+    public function updateOrInsert(array $attributes, array|callable $values = [])
     {
-        if (! $this->where($attributes)->exists()) {
+        $exists = $this->where($attributes)->exists();
+
+        if ($values instanceof Closure) {
+            $values = $values($exists);
+        }
+
+        if (! $exists) {
             return $this->insert(array_merge($attributes, $values));
         }