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Floor Plan Cost Per Day: $12,000 at 8% = $2.63 a Day

Floor plan interest is unit cost times APR divided by 365. Worked examples, the fuller per-unit holding cost formula from Cox Automotive, and a free calculator.

Marcio AzevedoUpdated 4 min read

Quick answer. Floor plan interest per day = unit cost x APR / 365. A $12,000 car at 8% costs $2.63 a day, about $118 over 45 days. A $35,000 unit at 5% costs $4.79 a day. That is only the interest. Cox Automotive's per-unit formula spreads a dealership's monthly operating expense over its stock, and its worked example lands at $44.63 per unit per day. Cox also flags 60 days as the point where a unit starts to look like frozen capital. Run your own numbers in the free holding cost calculator.

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In this article (6 sections)

Floor plan interest costs unit cost times APR divided by 365 per day. A $12,000 car at 8% costs $2.63 a day. Hold it 45 days and that is about $118 before a dollar of overhead. That is the minimum your car costs for every day it sits.

Daily interest
$2.63
Daily total (interest + overhead)
$2.63
Total holding cost over 45 days
$118.36
Break-even price drop
$118.36 (1.0% of cost)

Calculator assumptions: a $12,000 unit at 8% APR held 45 days with $0 daily overhead; replace with your own numbers. Estimates only. Also available as the standalone holding cost calculator.

If you buy at Copart, IAAI or Manheim and finance the unit, this is the number to keep next to your max bid.

LocalIQ™ market snapshot

What top flip candidates are asking right now

ModelListingsMedian asking price
GMC Sierra 1500632$29,972
Honda Civic5,396$15,000
Honda Accord4,176$15,999
Ford F-1503,134$24,000
Toyota Corolla3,040$14,500
Nissan Sentra3,004$9,880
Toyota Camry2,510$17,082
Hyundai Elantra2,396$9,499

LocalIQ™ asking-price median · 24,288 listings · updated every 6 hours. National, last 8 model years; asking price is your resale ceiling.

The formula

Daily interest = unit cost x APR / 365

Total holding cost = (daily interest + daily overhead) x days held

Some lenders count a 360-day year or add curtailment rules, so check the day-count basis in your own agreement. The structure does not change.

Run it with your numbers in the holding cost calculator. It works in your browser and sends nothing to a server.

Daily interest by unit cost and APR

Unit cost6% APR8% APR10% APR
$5,000$0.82$1.10$1.37
$10,000$1.64$2.19$2.74
$20,000$3.29$4.38$5.48
$35,000$5.75$7.67$9.59

The 6, 8 and 10% rates are round numbers for illustration, not quotes from a lender. Use your own APR.

What 30, 60 and 90 days do to one car

Take the $12,000 car at 8%, which is $2.63 a day:

Days heldInterest
30$78.90
60$157.81
90$236.71

Add overhead and the line steepens. At $5 a day for insurance and lot cost, the 60-day total is about $458.

The break-even price drop

The calculator also returns a break-even price drop: the holding cost for the days you would wait. If your choice is between selling now at a lower price and waiting 30 more days at the full price, any cut smaller than the 30-day holding cost leaves you ahead, all else equal.

For the $12,000 car with $5 a day of overhead, 30 more days costs about $229 (30 x $7.63). A $150 cut to sell this week costs less than waiting. It ignores depreciation, which only makes waiting costlier.

The fuller formula: Cox Automotive

Interest is only the financing slice. Cox Automotive publishes a per-unit formula that covers the whole operation:

Holding cost per unit per day = (total monthly expenses − monthly selling expenses) ÷ units in stock ÷ selling days

Its worked example uses $91,048 of monthly expense, 85 units in stock and 24 selling days, which gives $44.63 per unit per day. At a 60-day turn, Cox puts the cost of holding one unsold unit at about $2,677 against a $3,000 profit example. Those figures describe the example dealership, not yours. The takeaway is the method: divide what you spend to keep a lot open across the cars on it. Source: Cox Automotive, "Three Floor Plan Finance Formulas Every Dealer Should Know" (July 2017).

Cox also writes that once a unit moves past the 60-day point, you should start thinking about what might become frozen capital, or an inadequate return on investment. Treat 60 days as an alarm, not a target.

Put real days-to-sell in the formula

The calculator is only as good as the days you feed it. In CarFlipIQ's Q3 2026 data, the average timed sale took 14.6 days and 70.0% closed within 15 days (n=32,691). Some models are well above that: see days to sell by model, where the Honda Civic averaged 18.9 days (n=2,627) and the Chevrolet Tahoe 8.7 (n=135).

A practical routine:

  1. Look up days to sell for the model in your state's market report.
  2. Enter that number in the calculator to get the holding cost you should expect.
  3. Subtract it from your resale margin before you set a max bid on the max bid calculator.
  4. Set a day-15 checkpoint and a day-45 decision point.

On the buy side, remember what comes before the lot: Copart fees, IAAI fees, transport and tax. The auction cost guide walks the full stack.

Know the days before you bid.

CarFlipIQ shows local asking prices and days to sell for any year, make and model. 5 free car analyses, no credit card.

Frequently Asked Questions

How do you calculate floor plan cost per day?

Daily interest = amount financed x annual rate / 365. A $35,000 unit at 5% APR is $35,000 x 0.05 / 365 = $4.79 a day. Add any per-day overhead you carry on the car, such as insurance and lot cost, for the full daily cost.

What is the Cox Automotive holding cost formula?

Cox Automotive's formula is (total monthly expenses minus monthly selling expenses) divided by units in stock, divided by selling days. Its worked example, $91,048 divided by 85 units divided by 24 days, gives $44.63 per unit per day. That number is an example from one dealership, not a benchmark for yours.

How many days is too long to hold a used car?

Cox Automotive writes that once a unit passes the 60-day point, you should start thinking about frozen capital or an inadequate return on investment. In CarFlipIQ's Q3 2026 data, 70.0% of timed sales closed within 15 days.

Is floor plan interest the whole cost of holding a car?

No. It is the financing part. Insurance, lot and utility costs, reconditioning that sits unsold, and depreciation or market drift are separate costs on top.

What is the break-even price drop?

The total holding cost for the days you would otherwise wait. A price cut smaller than that number leaves you ahead of waiting those days, all else equal. The holding cost calculator computes it for you.

How we get these numbers

Market figures come from LocalIQ™, CarFlipIQ's index of asking prices on local used-car listings. We report medians rather than averages, so a few outlier listings can't drag the number, and a model only appears once it has at least 10 listings behind it. Treat the median asking price as your resale ceiling. How we get our numbers →

Check the resale before you bid

Look up any year, make and model against LocalIQ™ asking prices in your market. 5 free car analyses, no credit card.

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