Negative Equity Trade-Ins: Track the Old Debt in the New Loan
Rolling negative equity does not make old debt disappear. It moves the shortfall into the new loan, where it can accrue interest and create an even larger value gap.
Auto Loan Equity Calculator
Follow loan payoff beside depreciation instead of guessing from the monthly payment.
Calculations stay in this browser. No entries are saved.
Find where vehicle value crosses the loan payoff
Loan balance and vehicle value decline on different curves. Their gap shows positive equity or debt carried into another deal.
- Project the loan balance
- Project a vehicle value range
- Locate crossover and exit gap
Current equity and rollover risk
Calculated resultNot available
Use a lender payoff and several local comparable values adjusted for mileage and condition.
How auto equity changes over time
Loan balance follows fixed-rate amortization. Vehicle value declines at the entered annual compound percentage; the first month value meets or exceeds payoff is the modeled equity crossover.
Why vehicle value needs a range
Actual vehicle value depends on mileage, condition and market demand. Use a lender payoff and current comparable values before a transaction.
This calculator supports The Real Cost of Auto Financing. Negative Equity Trade-Ins: Track the Old Debt in the New Loan explains which details can change the inputs. The calculation methodology shows how we handle timing, rounding and exclusions.
Evidence standard for this calculation
Use a lender payoff and several local comparable values adjusted for mileage and condition. Inputs remain in the browser and outputs are rounded for display.
Read the complete methodology →Payoff and market-value evidence to collect
- Actual payoff and market-value evidence
- Mileage, condition and depreciation uncertainty
Questions about auto equity and rollover risk
How far is the projected vehicle value above or below payoff?
Projected equity is vehicle value under the entered depreciation rate minus the amortized loan payoff for the same month.
When might negative equity become positive?
The crossover is the first modeled month when vehicle value meets or exceeds payoff; actual market value can move that date.
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