Auto Loan Trade in Calculator

How to Use This Calculator

Using our auto loan trade-in calculator is simple. Follow these steps to get your estimated trade-in value and loan amount:

1. Enter the current market value of your vehicle in the "Current Vehicle Value" field.
2. Enter the amount you owe on your current vehicle loan in the "Amount Owed" field.
3. Enter the amount you want to put down as a down payment in the "Down Payment" field.
4. Enter the interest rate for your new loan in the "Interest Rate" field.
5. Enter the loan term in years in the "Loan Term" field.
6. Click the "Calculate" button to see your estimated trade-in value and loan amount.

The calculator will display your estimated trade-in value and the amount you'll need to finance for your new vehicle.

How the Trade-In Value is Calculated

The trade-in value of your vehicle is calculated by subtracting the amount you owe on your current vehicle from its current market value. This gives you the net amount you can apply toward your new vehicle purchase.

Once you have your trade-in value, you can use it to calculate your loan amount for the new vehicle. The loan amount is calculated by subtracting your down payment from the purchase price of the new vehicle, then adding your trade-in value.

The monthly payment for your new loan is calculated using the standard loan payment formula:

Worked Example

Let's walk through an example to see how the calculator works. Suppose you have a vehicle worth $15,000 with $8,000 still owed on the loan. You want to buy a new vehicle priced at $22,000, put down $5,000, and finance the rest with a 4.5% interest rate over 5 years.

1. Enter $15,000 as the Current Vehicle Value.
2. Enter $8,000 as the Amount Owed.
3. Enter $5,000 as the Down Payment.
4. Enter 4.5 as the Interest Rate.
5. Enter 5 as the Loan Term.
6. Click Calculate.

The calculator will show:

• Trade-In Value: $7,000 ($15,000 - $8,000)
• Loan Amount: $14,000 (($22,000 - $5,000) + $7,000)
• Monthly Payment: $252.60 (calculated using the loan payment formula)

This means you can use $7,000 toward your new vehicle purchase, and you'll need to finance $14,000 at a monthly payment of $252.60.