How do I calculate the equity of my car?

Is it the Kelly Bluebook selling price minus the loan amount still owed on the car? Example: $12,000 (kelly blue book) - $8,000 (loan still owed) = $4,000 (my equity in the car) ? Is that correct?|||Your calculations are correct. The difference between trade-in and retail values is what the dealer will give you toward the purchase of another car (trade-in) and what you can try to ask if you sell the car yourself (retail). The retail value is also what the car dealer will ask when he tries to sell the car. |||Your calculation is correct. I would suggest using the trade in value as it is usually a little lower than the retail value. Better to guess low than high.