Negative equity calculator
In Texas, the state the examples below are worked in: negative equity rolled into the new loan is not taxed.
comptroller.texas.gov · checked Oct 2, 2026
By Mr. Voltage · Data checked Oct 2, 2026 · Page changed Oct 10, 2026
Where will you register the car?
Harris County, Texas
Example quotes. Pick your place and type yours. Example: three quotes on one car in Harris County, Texas. Pick your own place and type your quotes.
Your deals at a glance
| Deal | Payment | All-in |
|---|---|---|
| $581.67a month | $39,900.30 | |
| $525.30a month | $42,821.70 | |
| $569.00a month | $39,139.72 |
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Your numbers stay in this browser.
$581.67 a month · 60 payments
All-in $39,900.30
$525.30 a month · 72 payments
All-in $42,821.70
$569.00 a month · 60 payments
All-in $39,139.72
Out-the-door $35,159.75
not counting your trade-in yet. Type this dealer’s offer.
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Out-the-door $35,898.19
not counting your trade-in yet. Type this dealer’s offer.
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Out-the-door $35,650.38
not counting your trade-in yet. Type this dealer’s offer.
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
New · 2026 · Gas · change
New or used
The sheet starts with a new car; each deal sets its own
Model year
A new car is the current or next model year
Fuel
Gas car. Electric and hybrid cars pay more in some states
Doc fee stated on its own line
Buyer’s orders list the doc fee on its own line, which is what keeps it untaxed in Texas
New · 2026 · Gas · change
New or used
The sheet starts with a new car; each deal sets its own
Model year
A new car is the current or next model year
Fuel
Gas car. Electric and hybrid cars pay more in some states
Doc fee stated on its own line
Buyer’s orders list the doc fee on its own line, which is what keeps it untaxed in Texas
New · 2026 · Gas · change
New or used
The sheet starts with a new car; each deal sets its own
Model year
A new car is the current or next model year
Fuel
Gas car. Electric and hybrid cars pay more in some states
Doc fee stated on its own line
Buyer’s orders list the doc fee on its own line, which is what keeps it untaxed in Texas
$225.00: what Texas presumes reasonable.
Texas calls it a documentary fee.
It must be the same whether you pay cash or finance.
law.cornell.edu · checked Oct 2, 2026
The notice Texas requires with this fee
A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS RELATING TO THE SALE. A DOCUMENTARY FEE MAY NOT EXCEED A REASONABLE AMOUNT AGREED TO BY THE PARTIES. THIS NOTICE IS REQUIRED BY LAW.
$225.00: what Texas presumes reasonable.
Texas calls it a documentary fee.
It must be the same whether you pay cash or finance.
law.cornell.edu · checked Oct 2, 2026
The notice Texas requires with this fee
A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS RELATING TO THE SALE. A DOCUMENTARY FEE MAY NOT EXCEED A REASONABLE AMOUNT AGREED TO BY THE PARTIES. THIS NOTICE IS REQUIRED BY LAW.
$225.00: what Texas presumes reasonable.
Texas calls it a documentary fee.
It must be the same whether you pay cash or finance.
law.cornell.edu · checked Oct 2, 2026
The notice Texas requires with this fee
A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS RELATING TO THE SALE. A DOCUMENTARY FEE MAY NOT EXCEED A REASONABLE AMOUNT AGREED TO BY THE PARTIES. THIS NOTICE IS REQUIRED BY LAW.
Your $5,000.00 down covers the $2,459.75 in tax, title, license and the doc fee first; $2,540.25 goes toward the price.
Your $5,000.00 down covers the $2,503.19 in tax, title, license and the doc fee first; $2,496.81 goes toward the price.
Your $5,000.00 down covers the $2,400.38 in tax, title, license and the doc fee first; $2,599.62 goes toward the price.
Illustrative rate, not a quote. Your APR depends on your credit, the term, the vehicle and the lender.
Illustrative rate, not a quote. Your APR depends on your credit, the term, the vehicle and the lender.
Illustrative rate, not a quote. Your APR depends on your credit, the term, the vehicle and the lender.
60 payments, last $581.77
72 payments, last $525.40
60 payments, last $568.72
cash down plus every payment
cash down plus every payment
cash down plus every payment
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
3 charges this total leaves out
3 charges this total leaves out
3 charges this total leaves out
What rolling it in changes
Take a $32,700.00 new car with $5,000.00 down, financed at 5.90% over 60 months (Texas, with the car registered in Harris County), and a trade-in allowed at $10,000.00 with $13,000.00 still owed, a shortfall of $3,000.00. Rolled in, the amount financed is $32,534.75, the payment is $627.48 a month and the interest over the loan is $5,113.73. If the trade-in had been worth what is owed, they would be $29,534.75, $569.62 and $4,642.28. The tax is $1,418.75 either way: in this example the shortfall is not taxed.
Worked examples
Each line below is worked by the same engine as the calculator, on the day this page was built (Nov 11, 2026).
The deal with negative equity rolled into the new loan
A new car at $32,700.00, with a trade-in allowed at $10,000.00 and $13,000.00 still owed, $5,000.00 down, financed at 5.90% for 60 months, bought from a dealer and registered in Harris County.
| Line | Amount |
|---|---|
| Price | $32,700.00 |
| Trade-in allowance | $10,000.00 |
| Still owed on the trade-in | $13,000.00 |
| Equity (negative if you owe more than it is worth) | −$3,000.00 |
| Taxable amount statutes.capitol.texas.gov · checked Oct 2, 2026 | $22,700.00 |
| Motor vehicle sales tax statutes.capitol.texas.gov · checked Oct 2, 2026 | $1,418.75 |
| Doc fee law.cornell.edu · checked Oct 2, 2026 | $225.00 |
| Title application fee statutes.capitol.texas.gov · checked Oct 2, 2026 | $33.00 |
| Registration fee statutes.capitol.texas.gov · checked Oct 2, 2026 | $101.50 |
| TexasSure insurance verification fee txdmv.gov · checked Oct 2, 2026 | $2.00 |
| County road and bridge and child safety fees txdmv.gov · checked Oct 2, 2026 | $23.00 |
| Inspection program replacement fee statutes.capitol.texas.gov · checked Oct 2, 2026 | $16.75 |
| Processing and handling fee law.cornell.edu · checked Oct 2, 2026 | $4.75 |
| Metal license plate fee txdmv.gov · checked Oct 2, 2026 | $10.00 |
| Out-the-door price | $34,534.75 |
| Cash down | $5,000.00 |
| Amount financed | $32,534.75 |
| Monthly payment | $627.48 |
| Interest over the loan | $5,113.73 |
| Total paid, interest included | $42,648.48 |
The same deal when the trade-in is worth what is owed
A new car at $32,700.00, with a trade-in allowed at $10,000.00 and $10,000.00 still owed, $5,000.00 down, financed at 5.90% for 60 months, bought from a dealer and registered in Harris County.
| Line | Amount |
|---|---|
| Price | $32,700.00 |
| Trade-in allowance | $10,000.00 |
| Still owed on the trade-in | $10,000.00 |
| Equity (negative if you owe more than it is worth) | $0.00 |
| Taxable amount statutes.capitol.texas.gov · checked Oct 2, 2026 | $22,700.00 |
| Motor vehicle sales tax statutes.capitol.texas.gov · checked Oct 2, 2026 | $1,418.75 |
| Doc fee law.cornell.edu · checked Oct 2, 2026 | $225.00 |
| Title application fee statutes.capitol.texas.gov · checked Oct 2, 2026 | $33.00 |
| Registration fee statutes.capitol.texas.gov · checked Oct 2, 2026 | $101.50 |
| TexasSure insurance verification fee txdmv.gov · checked Oct 2, 2026 | $2.00 |
| County road and bridge and child safety fees txdmv.gov · checked Oct 2, 2026 | $23.00 |
| Inspection program replacement fee statutes.capitol.texas.gov · checked Oct 2, 2026 | $16.75 |
| Processing and handling fee law.cornell.edu · checked Oct 2, 2026 | $4.75 |
| Metal license plate fee txdmv.gov · checked Oct 2, 2026 | $10.00 |
| Out-the-door price | $34,534.75 |
| Cash down | $5,000.00 |
| Amount financed | $29,534.75 |
| Monthly payment | $569.62 |
| Interest over the loan | $4,642.28 |
| Total paid, interest included | $39,177.03 |
Questions people ask
What is negative equity on a car?
Negative equity, also called being upside down, is owing more on a car loan than the car is worth. When you trade the car in, the dealer's allowance goes toward the payoff, and the shortfall is what is left. In the example above the trade-in is allowed at $10,000.00 and $13,000.00 is still owed, so the equity is minus $3,000.00.
How do I trade in a car with negative equity?
The dealer pays off your old loan with the trade-in allowance, and the shortfall has to go somewhere: you pay it in cash, or it is added to the new loan. Your lender can give you a payoff figure good through a date; set it beside the dealer's allowance to see the shortfall before you sign. In the calculator, switch on the trade-in on a deal, type the allowance and the payoff, and the shortfall is shown as its own line.
What happens when negative equity is rolled into a new loan?
It becomes part of the amount you finance, so you pay interest on it for the whole term. Take a $32,700.00 new car with $5,000.00 down, financed at 5.90% over 60 months (Texas, with the car registered in Harris County), and a trade-in allowed at $10,000.00 with $13,000.00 still owed, a shortfall of $3,000.00. Rolled in, the amount financed is $32,534.75, the payment is $627.48 a month and the interest over the loan is $5,113.73. If the trade-in had been worth what is owed, they would be $29,534.75, $569.62 and $4,642.28. The tax is $1,418.75 either way: in this example the shortfall is not taxed.
Is negative equity taxed?
It depends on the state. In Texas, the state the examples are worked in: Negative equity rolled into the new loan is not taxed. Other states differ, and the calculator applies the rule of the state you pick and shows its source and the date it was checked.
comptroller.texas.gov · checked Oct 2, 2026
How do people get out of an upside-down car loan?
The common routes, each with a cost: pay the shortfall in cash when trading in; keep the car and make payments (or extra payments) until the loan is below what the car is worth; roll the shortfall into the next loan, which raises that loan as the figures above show; or pay the loan down over a shorter term. The calculator shows what the rolled-in route costs on your numbers; the other routes are a comparison you can make by changing the cash down or the term on another deal.