Floorplan Interest Cost Calculator

Floorplan financing is a revolving line of credit used by vehicle dealers to purchase inventory at auctions. The lender pays for the vehicle upfront, and the dealer repays the principal plus interest when the vehicle is sold. Common floorplan providers include NextGear Capital, AFC (Automotive Finance Corporation), and Ally Financial.

Most floorplan lenders use simple interest, calculated as: Interest = Principal × (APR ÷ 365) × Days in Stock. For example, a $25,000 vehicle at 7.5% APR held for 45 days would accrue $231.16 in interest. Unlike compound interest, the interest does not itself earn interest — it is based solely on the original principal.

APR (Annual Percentage Rate) represents the yearly cost of borrowing. Simple interest applies this rate proportionally to the number of days you hold the vehicle. With simple interest, $25,000 at 7.5% APR for one full year = $1,875. For shorter periods, you pay only for the days you actually hold the vehicle. Some lenders may compound interest monthly, which would result in slightly higher costs.

An origination fee (also called a flooring fee) is a one-time charge when you floor a vehicle — typically $25 to $75 per unit. A curtailment is a required partial principal payment (usually 10-20% of the original amount) triggered after a set period (often 30-60 days). Missing a curtailment deadline may result in additional fees or increased interest rates.

The most effective strategy is to reduce days in stock — every day costs money. Other tips: negotiate a lower APR based on volume, sell fast-depreciating vehicles first, track curtailment deadlines to avoid penalty fees, and consider paying down principal early on slow-moving units to reduce daily interest accrual.

Yes! Click the "Share Link" button to copy a URL that contains all your current inputs. When someone opens that link, the calculator will pre-populate with your exact values, making it easy to collaborate on inventory financing decisions.