How it works
- 1Enter the watch you're sellingIts price, what you have in it, and your costs on the sale.
- 2Enter the trade-in allowanceWhat you're crediting the customer for their watch.
- 3Estimate the trade-in's resaleWhat you expect to sell their watch for, and what that sale and any prep will cost.
- 4See both sidesProfit on each watch, the cash difference, and the allowance that breaks even on the trade-in.
Why trades need two calculations
In a trade, the price of your watch and the allowance for theirs move together. A generous allowance can be disguised by a firm price on your watch, and the deal looks fine until you sell the trade-in and discover you overpaid for it. Separating the profit on each watch shows where the money is really made and lost. The guide to pricing a trade-in covers valuing the watch you take in.
Treat the allowance like a purchase
The allowance is what you're paying for the customer's watch, so it deserves the same discipline as any buy: work back from a realistic resale price, take out the costs of selling it and getting it ready, and don't go above the result. The break-even allowance in this calculator is that ceiling, before any profit on the trade-in itself.
Common questions
What's a trade-in allowance?
The credit you give the customer for their watch toward the price of yours. The customer pays the difference in cash. In effect, the allowance is the price you're paying for their watch.
Is it fine to lose money on the trade-in if the overall deal is profitable?
Sometimes, as a deliberate choice to close a sale. The danger is doing it without knowing. Seeing the two profits separately lets you decide on purpose rather than discover it later.
Does a trade-in affect sales tax?
In some states it can, and the rules vary. Check how your state treats trade-ins before you rely on any particular tax outcome.
Email me this result
The numbers and the breakdown, with a link that reopens this calculation. And we'll tell you when new calculators go live.