Free tool
Am I underwater on my car?
Type what the car is worth and what you still owe on it. The answer is arithmetic, and the method is under it.
Your result shows here: the equity, the loan-to-value, and roughly when the balance falls below the value.
Track it automatically
Money Actually reads the loan balance from your lender and keeps the car’s value you set, so this number stays current in your net worth without retyping it.
Start freeHow it’s worked out
- Equity is what the car is worth minus what you owe. Negative means underwater.
- Loan-to-value is what you owe divided by what the car is worth. Over 100% means underwater.
- In your net worth the car is an asset and the loan a debt, so the pair counts as the equity figure.
- The balance follows a standard fixed-payment loan: the payment that clears what you owe at your APR over the payments left, with interest charged monthly at APR ÷ 12. Extra payments, fees and missed payments are not modelled.
- The value falls by the yearly percentage you set, spread evenly across the months. Real prices move with mileage, condition and the market, so treat the crossing point as a rough guide.
No account, and nothing saved: your figures travel only in this page’s link, so anyone you share it with sees them. This is arithmetic on your figures, not financial advice: it doesn’t tell you whether to keep, sell or refinance the car.