About the Trade-In Equity Calculator
Trade-in equity is your car's value minus what you still owe. Positive equity becomes a down payment on your next car; negative equity is debt you'd carry into the next loan.
How it’s calculated
Equity = trade-in value − loan payoff balance. Positive means value to apply; negative means you're underwater.
Example calculation
A $15,000 trade-in offer against a $12,000 payoff leaves $3,000 of positive equity toward your next car.
Frequently asked questions
What is negative equity?
It means you owe more than the car is worth — being 'underwater' or 'upside down.' Rolling it into a new loan finances part of the old car on top of the new one, which is costly.
How do I get an accurate payoff?
Ask your lender for a formal payoff quote. It can differ from your statement balance because of accrued interest and any early-payoff details.
This calculator provides estimates for educational purposes and should not be considered financial, tax, or legal advice. Your actual figures may vary with lender terms, fees, and market conditions.