Out-the-Door Price Calculator

How it works

The out-the-door price is everything the purchase costs before the trade-in and down payment are applied: the negotiated price less rebates, plus sales tax, plus the dealer's doc fee and the state's title and registration fees.

Sales tax is where states differ most. Many tax the price after subtracting the trade-in allowance, which can save hundreds of dollars; some tax the full price regardless of the trade. Some tax the price before a manufacturer rebate, some after. Choose the rules and enter the rate that apply where the car will be registered.

Your trade-in equity (its value less any loan payoff) is then subtracted to give the balance due, and your cash down payment leaves the amount to finance. Negative equity on the trade-in adds to the balance.

Formula

taxable amount = price − rebates (if rebates reduce tax) − trade-in value (if the state allows the credit), not below 0
sales tax      = taxable amount × tax rate
out-the-door   = price − rebates + sales tax + doc fee + title/registration + other fees
trade-in equity = trade-in value − trade-in payoff
amount to finance = out-the-door − trade-in equity − cash down

Example

A $32,000 car with a $1,000 rebate and a $10,000 trade-in, at a 6.25% rate in a state that taxes the price before the rebate but after the trade-in (as Texas's motor vehicle tax does for trade-ins): the taxable amount is $32,000 − $10,000 = $22,000 and the tax is $1,375.

Adding a $200 doc fee and $300 for title and registration, the out-the-door price is $32,000 − $1,000 + $1,375 + $500 = $32,875. The trade-in credit saved $625 of tax. Subtracting the $10,000 trade-in and $3,000 down leaves $19,875 to finance.

Assumptions and limitations

• Tax rates, the treatment of trade-ins and rebates, and whether doc fees are taxable vary by state and sometimes by county. The calculator applies the rate and choices you enter and does not know your state's rules, which are published by the state's revenue or motor vehicle agency.
• Doc, title and registration fees default to illustrative amounts. Fees are treated as untaxed; if your state taxes the doc fee, add the tax to Other Fees.
• Trade-in credit is applied to the full trade-in allowance, not to equity (Texas, for example, taxes the sales price minus any trade-in allowance). States that allow the credit may apply it differently.
• Extended warranties, service contracts and other add-ons are not included unless you enter them as other fees.
• This is an estimate, not financial or tax advice; the buyer's order from the dealer governs.

Frequently asked questions