Negative Equity Calculator — Calculate How Much You Owe vs. Your Car’s Value

Negative Equity Calculator

Calculate if you have negative equity (upside-down) on your car loan. Determine how much you owe compared to your vehicle’s current market value and explore your options.

Step 1: Loan & Vehicle Details

$25,000
$22,000

Understanding Negative Equity

Negative equity occurs when you owe more on your loan than your vehicle is worth. This is also called being “upside-down” or “underwater” on your loan.

Step 2: Financial Details

5.5%

Common Causes of Negative Equity

Long loan terms (72+ months), high interest rates, rapid depreciation, and minimal down payments can lead to negative equity. Trade-ins with existing negative equity can also compound the problem.

Negative Equity Results

Summary
Vehicle Comparison
Solutions

Negative Equity Amount

-$3,000
You owe $3,000 more than your vehicle is worth
Loan-to-Value Ratio
114%
Vehicle Value
$22,000
Loan Balance
$25,000
Months to Positive Equity
14

Vehicle Type Comparison

Vehicle Type Typical Depreciation Projected Value Negative Equity

Solutions for Negative Equity

Keep & Pay Down
14 months
Continue payments until equity positive
Refinance
$3,200
Estimated cash needed to refinance
Trade-In Cost
$3,000
Added to new loan if trading
Gap Insurance
Recommended
Protects against total loss

Negative Equity Formula

Negative Equity = Loan Balance – Current Vehicle Value

If the result is positive, you have negative equity. If negative, you have positive equity. Loan-to-value ratio = (Loan Balance ÷ Vehicle Value) × 100%.

Need Help with Negative Equity?

Connect with our auto finance experts for personalized advice on refinancing, trade-ins, or strategies to get out of an upside-down car loan.

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