Purchasing a vehicle involves more than just the sticker price. Use our professional Out the Door Calculator to estimate the total final cost of your new or used car, including taxes, fees, and trade-in adjustments.
Out the Door Calculator
Out the Door Calculator Formula
Formula Source Reference: Edmunds.com, Kelley Blue Book
Variables:
- Vehicle Selling Price: The agreed-upon price of the vehicle before any taxes or fees.
- Trade-in Value: The amount the dealer gives you for your current car (often provides a tax credit).
- Sales Tax Rate: The percentage charged by your state/local government on the taxable total.
- Documentation Fee: A fee charged by the dealership for processing the paperwork.
- Title & Registration: Costs associated with registering the car and getting your license plates.
- Rebates & Incentives: Cash back or manufacturer discounts applied at the time of purchase.
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- Trade-in Value Estimator
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What is an Out the Door Calculator?
An Out the Door (OTD) calculator is an essential tool for car buyers to determine the “final” price they will pay to drive a car off the dealership lot. While many buyers focus solely on the MSRP or the monthly payment, the OTD price includes all the hidden costs that can add thousands of dollars to the final bill.
Knowing your OTD price allows you to compare offers between different dealerships accurately. For instance, one dealer might offer a lower selling price but charge much higher documentation fees, resulting in a more expensive OTD cost compared to a competitor.
How to Calculate Out the Door Price (Example)
Let’s say you are buying a car with the following details:
- Selling Price: $30,000
- Trade-in Value: $5,000
- Sales Tax: 6%
- Doc Fee: $500
- Title/Reg: $200
Step 1: Subtract trade-in and rebates from the price ($30,000 – $5,000 = $25,000).
Step 2: Calculate sales tax on the remaining balance ($25,000 × 0.06 = $1,500).
Step 3: Add everything together ($25,000 + $1,500 + $500 + $200 = $27,200 total OTD).
Frequently Asked Questions (FAQ)
What is the difference between MSRP and OTD?
MSRP is the manufacturer’s suggested retail price. OTD is the final cost including tax, title, registration, and dealer fees.
Are documentation fees negotiable?
While the fee itself is often pre-set by the dealer (and sometimes capped by the state), you can negotiate the vehicle’s selling price downward to offset a high doc fee.
Does a trade-in reduce my sales tax?
In many states, the value of your trade-in is deducted from the taxable price of the new vehicle, providing a significant tax saving.
Should I include rebates in my OTD calculation?
Yes, manufacturer rebates effectively lower the amount you need to pay, though in some states, sales tax is calculated before the rebate is applied.