🎁 Cash Back or Low Interest Calculator
Dealers often offer a choice: take a cash rebate and finance at the normal rate, or skip the rebate for a promotional low rate. The right answer depends on the numbers, not the headline.
Enter the car price, the cash-back amount and rate for option A, the promotional rate for option B, and the loan term. The calculator totals both deals and names the cheaper one with the exact saving.
How to use this calculator
Compare a cash-back rebate with standard financing against a promotional low rate by entering the car price, both offers and the loan term.
- Type the Car price.
- Enter Option A: the Cash back amount and its APR.
- Enter Option B: the promotional APR.
- Set the Loan term in months and press Calculate to see the winner.
Frequently asked questions
What exactly is being compared?
Option A finances the price minus the cash rebate at the standard rate, while Option B finances the full price at the promotional rate. Both totals are computed over the same term.
Which wins in a typical example?
On a $30,000 car with $2,000 back at 6% versus 0% for 60 months, Option A totals about $32,479 and Option B totals $30,000, so the low rate wins by roughly $2,479.
Can the cash back ever win?
Yes, when the rebate is large and the rate gap is small, especially on shorter terms where less interest accrues, which is why running the numbers matters.
What is not included?
Taxes, fees, and the time value of receiving cash up front are not modeled, so treat the saving as the financing comparison only.