Could you owe more than your car is worth?
This tool estimates the months where your loan balance could be higher than the car's value.
Put in your loan and car details and this tool estimates the months where your loan balance could be higher than the car's value. If there are months like that, a write-off during that time could leave you owing money after your car insurer pays out, which is the shortfall GAP insurance is designed to cover. It's a rough estimate using a depreciation rate you choose, not a quote, a valuation or a recommendation.
Your numbers
- Car price The cash price of the car.
- Deposit or trade-in (leave blank if none)
- CarPow broker fee $510 (added to the loan)
- Other lender fees (optional) Lender fees vary. See standard fees and charges.
- Extras added to the loan (optional) Insurance, warranties or other extras added to the loan. Extras added to the loan increase what you owe.
- Loan amount We work this out from the numbers above. You can change it. If you do, include the $510 broker fee and any other fees or extras.
- Loan term (choose 1 to 7 years)
- Interest rate
- How often you repay: weekly, fortnightly or monthly
- Car's age in years (optional)
- How fast the car loses value (% a year) Tap 10%, 20% or 30% (examples, not predictions), or type your own rate. Cars lose value at very different rates. Try a few rates to see how they change the result.
- Insurer's starting value (advanced, % of the price) An insurer's market value may differ from what you paid.
Your result
Illustrative example only, not a quote or offer. Based on a $20,000 car, a loan of $20,510 (including CarPow's $510 broker fee), 14.5% p.a. fixed, monthly repayments over 5 years: $482.57 a month, total payable $28,954.20. Lender fees are not included and may apply. See standard fees and charges. Interest rates range from 9.5% to 29.95% p.a. depending on the lender's assessment. Lending criteria apply. Approval not guaranteed. The car's future value is an assumption, not a prediction.
Apply now Read: GAP insurance explained
Lending criteria apply, and the lender will assess your application before any approval. Approval not guaranteed.
How we work this out
We add up your loan: the car price, less any deposit or trade-in, plus CarPow's $510 broker fee, plus any other fees and extras you entered.
We then work out the repayments for a standard loan with a fixed rate and no balloon payment, and track what you'd still owe after each repayment.
For the car's value, we start with the price (or the insurer's starting value, if you changed it). We reduce it each month by the yearly rate you chose.
Each month where the amount owing is higher than the estimated value counts as a shortfall month. The largest estimated shortfall is the biggest gap in any month.
Cars lose value at very different rates. Try a few rates to see how they change the result.
What the estimate leaves out
- Arrears or missed payments
- Your car insurance excess
- Fees you didn't enter
- Changes to your interest rate
- How your insurer works out the car's value
- Any limits in a GAP policy
To see what GAP insurance covers and how it compares with agreed value cover, read our GAP insurance guide.
Frequently asked questions
How does this calculator estimate my car's value?
It starts with the price you enter, or a lower starting value if you set one. Then it reduces that value each month by the yearly rate you choose. It's an estimate. Real values can be higher or lower.
How do I choose a depreciation rate?
Cars lose value at different rates. Try several rates to see how the result changes. We don't have an official NZ figure to give you.
Why might my insurer pay less than I paid for the car?
Many car insurance policies pay the car's market value at the time of the loss, not the price you paid. A dealer's sale price and an insurer's market value can differ. Agreed value cover works differently: you and your insurer set the value when you take out the policy and at each renewal.
What does a shortfall estimate mean?
It shows the months where, on your inputs, the loan balance could be higher than the car's estimated value. It isn't a recommendation to buy or not buy any product.
Is this calculator a loan application?
No. This calculator is not a loan application, and it doesn't ask for your name or contact details. If you apply for finance, the lender will assess your application.
Is this a quote or loan offer?
No. This calculator is an illustration only. It isn't a quote, a valuation, a loan offer or financial advice, and it doesn't take your circumstances into account.
About this calculator
This calculator is an illustration only. It isn't a quote, a valuation, a loan offer or financial advice, and it doesn't take your circumstances into account.
The car's future value is an estimate based on the depreciation rate you choose. Real values can be higher or lower.
Illustrative example only, not a quote or offer. Based on a $20,000 car, a loan of $20,510 (including CarPow's $510 broker fee), 14.5% p.a. fixed, monthly repayments over 5 years: $482.57 a month, total payable $28,954.20. Lender fees are not included and may apply. See standard fees and charges. Interest rates range from 9.5% to 29.95% p.a. depending on the lender's assessment. Lending criteria apply. Approval not guaranteed. The car's future value is an assumption, not a prediction.
Embeth Limited t/a CarPow is a registered financial service provider (FSP655251). We are a broker, not a lender. Information in this guide is general and not financial advice.
We don't ask for your name or contact details in this calculator. We record anonymous, grouped usage data to improve it.
If you have a complaint about CarPow, please contact us first. If we can't resolve it, you can go to our free, independent dispute resolution scheme: Financial Services Complaints Ltd (FSCL), member number 7632. For a complaint about a lender or insurer, contact them first, then their dispute resolution scheme.
Correct as at 26 September 2026.
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