Upside Down Loan Help

Negative Equity Calculator

Find out if you're upside down on your car loan and explore your options. Calculate the true cost of rolling negative equity into a new loan vs other alternatives. No signup required.

Equity Position

See if you're upside down on your loan.

Rollover Cost

Understand the cost of rolling negative equity.

Options Analysis

Compare trade-in, pay down, or keep the car.

Trade-In Value

Factor in your car's current value.

Recommendations

Get guidance based on your situation.

Refinance Option

See if refinancing is an option.

Negative Equity Calculator

Understand your equity position and options for trading in an underwater vehicle.

Current Vehicle

$

What you still owe on your loan

$

Trade-in value from KBB, Edmunds, or dealer quote

New Vehicle

$
$
%
Negative Equity
-$4,000

You owe more than your car is worth

Rolling Negative Equity Impact

New Vehicle Price$35,000
Down Payment-$3,000
Rolled-in Negative Equity+$4,000
Total Loan Amount$36,000
Extra cost from rollover: ~$4,690
LTV Ratio: 103% (you're 3% underwater on day 1)

Monthly Payment Comparison

Without Negative Equity
Clean financing
$632/mo
With Negative Equity
Rolled into new loan
$711/mo
+$79/month more ($4,740 over loan term)

Your Options

Keep Current Vehicle
Continue paying off your current loan until you have positive equity
Pros
No additional debt
Eventually own car outright
Cons
Stuck with current vehicle
May have maintenance costs
Pay Down the Gap
Pay $4,000 to eliminate negative equity
Pros
Clean slate
Better loan terms
Cons
Requires cash
Delays purchase
Roll In Negative Equity
Add the negative equity to your new loan
Pros
Get new car now
One payment
Cons
Higher payment
Underwater immediately
Sell Privately + Personal Loan
Sell car privately and take a personal loan for the gap
Pros
Often get more for car
Shorter gap payoff
Cons
More complex
Higher personal loan rates

How to Avoid This Next Time

  • Put at least 20% down on your next purchase
  • Choose loan terms of 48-60 months max
  • Consider buying slightly used to avoid first-year depreciation
  • Get GAP insurance if you're at risk of being underwater

Understanding Negative Equity

Negative equity means you owe more on the loan than the car is worth. It often happens after a trade-in with an old loan balance or with long loan terms and fast depreciation.

Use our trade-in calculator to estimate your car's value.

Can I Trade In with Negative Equity?

Yes, but the negative amount is usually rolled into the new loan, increasing what you owe and your payment. Paying down the old loan or waiting until you're not upside-down can be better.

Check our refinance calculator - refinancing with negative equity is harder but sometimes possible.

Frequently Asked Questions

Common questions about this tool

What is negative equity on a car?

Negative equity means you owe more on the loan than the car is worth. It often happens after a trade-in with an old loan balance or with long loan terms and fast depreciation.

Can I trade in a car with negative equity?

Yes, but the negative amount is usually rolled into the new loan, increasing what you owe and your payment. Paying down the old loan or waiting until you’re not upside-down can be better.

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