Vehicle EconomicsTrade-In Equity Calculator
Calculate the usable equity from an actual trade offer and your actual loan payoff.
Why this comes up
A dealer's trade offer is not your equity, and confusing the two is one of the most common mistakes in a trade-in. What you actually walk away with is the offer minus whatever you still owe minus any transaction costs, and that number can look very different from the headline offer, especially once a loan payoff is subtracted.
How we calculated this
Net trade equity is the offer minus your loan payoff minus transaction costs. If that's negative, you're underwater on the trade and would need to bring cash or roll the gap into a new loan. A trade-in sales-tax credit is only estimated if you enter a rate, since the rules vary by state and we never assume one by default.
Worked example, using this page's own defaults ($15,000 offer, $10,000 payoff, $200 costs): net trade equity comes to a comfortable positive number, run the calculator above with your own offer and payoff to see where you land.
What this means
- A high trade allowance is not the same as equity when the payoff is higher, always check the number after payoff and costs, not the offer alone.
- Positive net equity can be used as a down payment on your next deal, see Down Payment Needed for Target Payment to put it to work.
- Negative net equity means rolling the gap forward changes your next loan's payment and interest, see Negative Equity Rollover Payment for exactly how much.
Limitations
The tax-credit estimate, when entered, is a simple approximation and not a claim about your specific state's rules; verify it with your dealer or state tax authority before relying on it. See Methodology.
Methodology
This engine is built on Vehicle Economics' equity and depreciation projection model: your value and loan payoff projected forward from your own depreciation figure until they cross. See Methodology for the full detail.