Trade-In Equity Calculator Australia
Dealers pitch trade-ins in weekly repayments. This calculator shows you the equity position, the net amount you're actually financing, and what negative equity costs you — before the negotiation starts.
Who it's for
- Anyone planning to trade in their current car and wants to check their equity position independently.
- Borrowers who suspect they might owe more than their car is worth (negative equity).
- Upgraders comparing the trade-in path against selling privately and clearing the existing loan.
- Anyone whose dealer has offered to "roll in" an existing loan balance.
What it calculates
- Trade-in equity: value minus outstanding loan minus exit fees.
- Net amount to finance on the new vehicle.
- Estimated new loan repayments (weekly, fortnightly, monthly).
- Comparison: repayments with vs without the trade-in.
- Negative equity impact on new loan size and repayments.
Why it matters
Trading in a car with negative equity and rolling that gap into a new loan is one of the most common ways car buyers accidentally increase their debt load without realising it. The weekly repayment can still be "manageable" while the total amount financed has quietly grown. This calculator makes the full picture visible before you sign.
Trade-In Equity Calculator
Your current car
Check RedBook, CarsGuide, or recent listings. Dealer trade-in offers are typically 10–20% below private sale value.
Current payout figure. Enter $0 if owned outright.
Check your loan contract. Enter $0 if none.
You have approximately $7,000 in equity. This reduces the amount you need to finance on the new car.
The new vehicle and loan
Full drive-away price including stamp duty, rego, CTP, and dealer fees.
Current best from 5.66% p.a. (May 2026).
Results
Net amount to finance on new car
$38,000
This is the loan amount the new car finance is based on.
Repayments — With Trade-In
weekly
$173
fortnightly
$347
monthly
$752
Total repaid over 5 years
$45,136
Total interest
$7,136
For Comparison — Without Trade-In
What repayments would be if you financed the full new car price without a trade-in (e.g., sold the old car privately and cleared the existing loan yourself).
weekly
$205
fortnightly
$411
monthly
$891
Total repaid over 5 years
$53,450
Total interest
$8,450
Summary Comparison
| With Trade-In | Without Trade-In | |
|---|---|---|
| Net finance amount | $38,000 | $45,000 (full price) |
| Monthly repayment | $752 | $891 |
| Total repaid | $45,136 | $53,450 |
| Total interest | $7,136 | $8,450 |
| Trade-in equity applied | $7,000 | — |
You have equity to work with
Use your equity to reduce your new loan amount and keep repayments manageable — then compare new car loan rates to find the best deal on the net finance amount.
How this trade-in equity calculator works
The trade-in equity calculator works in two connected stages.
Stage 1 — Equity calculation: The calculator takes your current car's estimated market value and subtracts any outstanding loan balance and any exit fees. Positive equity = the car is worth more than you owe — this can be applied as a deposit equivalent on the new car. Negative equity = you owe more than the car is worth — this shortfall is typically rolled into the new car loan.
Stage 2 — New loan modelling: The net finance amount (new car price minus equity, or plus negative equity if rolled in, minus any cash deposit) is used as the loan principal for a standard amortising calculation at your entered interest rate and term. Weekly, fortnightly, and monthly repayments are derived from this.
Comparison output: The "without trade-in" comparison uses the full new car price as the loan principal, simulating the scenario where you sold the current car privately, cleared the existing loan, and financed only the new car price.
How to interpret your results
- Trade-in equity (positive): This equity reduces the new loan. More equity means a smaller loan, lower repayments, and less interest paid overall.
- Trade-in equity (negative): Negative equity means you're bringing debt — not savings — to the new car deal. Look at the "extra total interest" figure to see what that debt will cost you over the loan term.
- Net finance amount: This is what you're actually borrowing. Compare it to the new car price to understand whether the trade-in helped, was neutral, or made the loan larger.
- "Without trade-in" comparison: This tells you what repayments would look like if you financed only the new car price. If equity is positive, "with trade-in" should show lower repayments. If negative, "with trade-in" will show higher repayments.
- Private sale vs trade-in: A dealer trade-in is faster but typically returns 10–20% less than a private sale. If your negative equity is small, the gap between a dealer trade-in and a private sale might eliminate it entirely.
Calculator assumptions
This calculator is a general guide only. Results are estimates based on the values you enter and standard principal-and-interest loan mathematics. The calculator assumes:
- Trade-in equity is calculated as: current car estimated value – outstanding loan balance – exit fees
- Negative equity, if present, is assumed to be rolled into the new car loan in full (unless a cash deposit is entered to offset it)
- New loan repayments are calculated using standard amortisation (equal periodic payments over the term)
- The "without trade-in" comparison uses the full new car drive-away price as the loan amount, with no equity or deposit applied
- Stamp duty, government charges, and dealer fees on the new car are not modelled; use the drive-away price to include these
Actual outcomes depend on the trade-in value your dealer offers, your lender's specific loan policies and fees, whether your lender will accept rolled-in negative equity, and the actual payout figure from your current lender on the settlement date.
Results are not a quote, pre-approval, or personal financial advice. Compare real loan offers and seek independent advice before making a final decision.