Carvana Purchase & Equity Estimator
Calculate your specific monthly commitment and trade-in impact for your next vehicle.
How to Use the Carvana Calculator
Navigating an online car purchase requires a clear understanding of how trade-in values and existing loan balances interact with a new vehicle listing price. This calculator is designed specifically for the Carvana ecosystem, where trade-in values are often used as a tax credit against the new purchase.
1. Vehicle Listing Price: This is the sticker price you see on the Carvana app or website for the car you wish to buy.
2. Trade-In Equity: This is calculated by taking your "Trade-In Appraisal" and subtracting your "Current Vehicle Loan Balance". If you owe more than the car is worth, this results in "negative equity" which is added to your new loan.
3. Tax Savings: In many states, you only pay sales tax on the difference between the new car price and your trade-in value. Our logic automatically calculates this benefit for you.
Example Calculation
Suppose you are looking at a $30,000 SUV. You have a trade-in appraised at $15,000, but you still owe $12,000 on it. Your state tax is 6% and your financing duration is 60 months at 5%.
- Net Equity: $15,000 – $12,000 = $3,000 positive equity.
- Taxable Amount: $30,000 – $15,000 = $15,000 (tax is only on the difference).
- Sales Tax: $15,000 * 0.06 = $900.
- Total Financed: $30,000 – $3,000 + $900 + fees.
Carvana Financing vs. Third-Party
While Carvana offers in-house financing, you can often use this calculator to compare their "Yearly Financing Fee %" against your local credit union. Remember that Carvana's pricing is "no-haggle," meaning the listing price you enter here is final, unlike traditional dealerships where you might negotiate the base price downward.