Finance Calculator
Dealer Markup Calculator
MSRP is the sticker; invoice is what the dealer paid. Enter both plus your offer to see the real markup — the dealer's margin — and how much negotiating room is left.
The Numbers
Look this up on Edmunds or KBB for the exact trim.
Markup Over Invoice
5.1% above the dealer's cost
Discount from MSRP
$1,000
Dealer's Total Margin
$2,800
Fair Target Price
$36,080
Room to Negotiate
$920
Verdict
This offer sits above invoice with room to negotiate. Aim for invoice + 2–3%.
How it works.
Frequently asked questions.
Should I negotiate from MSRP or invoice?
Always negotiate up from invoice, not down from MSRP. Sticker price is a starting number designed to make a small discount feel generous. Knowing the invoice cost lets you anchor on the dealer's real cost and target a small, fair margin above it.
What is a fair markup over invoice?
For most mainstream vehicles, invoice + 2–5% is reasonable. High-demand or limited models may sell at or above MSRP, while slow sellers can go near or below invoice, especially with manufacturer incentives to the dealer (holdback and dealer cash).
Does invoice price include dealer holdback?
No. Dealers also receive holdback (typically 1–3% of MSRP) from the manufacturer after the sale, so their true cost is a bit below invoice. That is why some dealers can sell at or slightly under invoice and still make money.