Negative Equity Car Loan Calculator (Underwater Trade-In)

How to do it

1. 1
   Step 1: Open Negative Equity Car Loan Calculator (Underwater Trade-In) and add your input

   Type your numbers or text, add your file, or pick the options you need. Nothing is uploaded: everything stays in your browser.

2. 2
   Step 2: What Negative Equity Car Loan Calculator (Underwater Trade-In) does

   See what rolling negative equity into a new car loan does to your loan, payment and interest.

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   Step 3: Read the result and compare

   The result appears at once. Change one value to see how the answer moves, then keep the figure that fits your case.

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   Step 4: Copy or save it

   Copy the result or download it. For an important decision, confirm it with the official source or an adviser.

About this tool

Enter the price of the new car, your trade-in value and what you still owe, your down payment, sales tax, fees, rate and term. The calculator shows the negative equity, the new loan amount, how it compares with the car's value and the payment and interest the rollover adds.

What negative equity is

You are underwater when you owe more on your car than it is worth. If you trade it in, the gap is added to the new loan unless you pay it in cash.

What it costs

The new loan is the price plus tax and fees plus the negative equity, minus your down payment. A loan larger than the car's value is risky because the car loses value fastest in the first years. GAP insurance can cover the difference if the car is totaled.

The extra cost

The tool compares the loan with and without the rolled-over amount: the extra monthly payment and the extra interest you pay on borrowing it. Sales tax is taken on the price only; some states give a trade-in credit that lowers it.

Worked example

A $35,000 car with a trade-in worth $12,000 against a $16,000 loan, 6% tax, $800 fees and $1,000 down: negative equity is $4,000, the new loan is $40,900 (117% of the car's price), the payment over 72 months at 7.5% is $707.17, which is $69.16 more than without the rollover, and total interest is $10,016.

Tips for best results

Check every box before you rely on a result, because one wrong digit changes the whole answer. Use the exact figures from your payslip, bill, certificate or contract, and keep a note of the date you calculated. Rates, thresholds and rules change from time to time, so for tax, fees and legal matters treat the output as an estimate and confirm with the official source named on this page. You can run as many scenarios as you like; nothing is saved or sent, and refreshing the page clears the boxes.