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Buying & FinancingTrade-In Equity Calculator — Positive or Negative?
Find out whether your car is worth more than you still owe. Enter your loan payoff amount and the trade-in value you’ve been offered.
How this calculator works
Equity is simply your trade-in value minus what you still owe (the payoff). Positive equity is money toward your next car; negative equity (being “underwater”) is debt that typically gets rolled into the next loan — which is how people end up financing more than their new car is worth.
What changes the number
- Get your exact payoff from the lender, not just the balance — it can include a few days of interest.
- A private-party sale usually beats a dealer trade-in offer, turning more of your car’s value into equity.
- Rolling negative equity into a new loan stacks old debt on a new car — a fast way to stay underwater for years.
Frequently asked questions
What is negative equity?
It means you owe more on the car than it’s worth — you’re “underwater.” Selling or trading it doesn’t clear the loan; the shortfall has to be paid or rolled into a new loan.
How do I get my exact payoff?
Ask your lender for a “10-day payoff” figure. It’s the balance plus interest accrued to the payoff date, and it’s the number that matters for a trade.
Should I roll negative equity into a new loan?
Avoid it if you can — it inflates the new loan and keeps you underwater. Better to wait, pay down the gap, or sell privately for more than a trade offer.