Expert Reviewed by: David Chen, CFA — Financial Analyst & Automotive Consultant
Calculating the true cost of a new vehicle can be complex. Use our Out of Door Price Calculator to estimate the final total cost, including taxes, dealer fees, and registration, so you can walk into the dealership with confidence.
Out of Door Price Calculator
Enter details above to see your OTD price.
Out of Door Price Calculator Formula
OTD Price = (Sales Price + Dealer Fees – Rebates – Trade-in) × (1 + Tax Rate) + Registration
Source: Edmunds – Car Buying Guide
Variables:
- Sales Price: The negotiated price of the vehicle before any add-ons.
- Dealer Fees: Includes documentation fees, destination charges, and preparation costs.
- Sales Tax: The percentage your local government charges on the purchase.
- Registration: State-level fees for license plates and title transfer.
- Trade-in Value: The amount the dealer credits you for your old vehicle.
What is Out of Door Price Calculator?
The “Out of Door” (OTD) price refers to the absolute final total you pay to drive a car off the dealer lot. Unlike the sticker price (MSRP) or the negotiated sales price, the OTD price accounts for every hidden fee, government tax, and mandatory charge associated with the transaction.
Using an Out of Door Price Calculator is essential for budgeting. Most buyers focus solely on the monthly payment or the sales price, often being surprised by an additional 10-15% in taxes and fees at the signing table. Knowing your OTD price allows you to secure appropriate financing and avoid overextending your budget.
How to Calculate Out of Door Price (Example)
- Determine the Adjusted Price by adding Dealer Fees to the Sales Price.
- Subtract any Rebates or Trade-in Values from the Adjusted Price.
- Multiply the result by the Sales Tax Rate (e.g., $1.07$ for $7\%$).
- Add the Registration and Title Fees to get the final total.
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Frequently Asked Questions (FAQ)
Are dealer fees negotiable? While some fees like “Doc Fees” are often capped by state law, others like “Advertising Fees” or “Dealer Prep” can often be negotiated down or removed.
Does OTD include insurance? No, insurance is a separate cost managed through your provider, though dealerships require proof of insurance before you drive away.
How does a trade-in affect tax? In many states, you only pay sales tax on the difference between the new car price and your trade-in value, which can save you hundreds of dollars.
Is the OTD price the same as MSRP? Rarely. MSRP is just the manufacturer’s suggestion. The OTD price is the actual total including government taxes and dealer add-ons.